Do you have both a Health Savings Account (HSA) and a 401(k) through your employer? HSAs are generally thought of as a vehicle for healthcare savings – after all, that’s right in the name! – and most people understand that a 401k is used for retirement. Many wonder, though, which account they should fund first, the HSA or 401k. Let’s compare the two. HSA vs 401k – What is the difference? What is an HSA?
While competitive salaries and flexible work arrangements often grab headlines, tax-advantaged benefit accounts like health savings accounts (HSAs), flexible spending accounts (FSAs), and health reimbursement arrangements (HRAs) are powerful tools for recruiting and retaining top talent that are often overlooked. These accounts support employees’ financial wellness and help employers manage benefit costs effectively, creating a win-win scenario for both parties. Financial Wellness Benefits Grow in Importance Financial stress remains a significant burden for many employees.
When you think of finances and retirement, what immediately comes to mind? Popular retirement vehicles typically include Social Security benefits, a 401(k), an IRA, and investments like mutual funds or stock options. There is another retirement tool that many people overlook – the Health Savings Account or HSA. At first glance, this may seem confusing. What does an account used for healthcare needs have to do with retirement? While HSAs are primarily used for qualified
For decades, participating in a Flexible Spending Account (FSA) or Health Savings Account (HSA) has been crucial to affordable healthcare for millions of American workers and their dependents. The extensive list of eligible expenses covers well-known services like medical, dental, and vision copays, copays, deductibles, eyeglasses and contact lenses, and prescription medication. However, due in part to updates in recent years to approved items and services, you may be overlooking a host of qualified FSA
Open enrollment can be stressful for employees, HR professionals, and third-party benefit administrators. Vital information must be shared and digested, and timely financial decisions must be made so coverage can start on time. Your company workforce may range from experienced, veteran employees to new hires in their first job. It’s a tall task to pull off an open enrollment season that meets the needs of everyone involved (but you CAN do it!). Here are 12 ways
Open enrollment represents a pivotal moment for both employees and employers each year. This is when individuals can make significant choices regarding their health insurance coverage. For many, it’s the sole chance to enroll in or adjust tax-advantaged benefits such as Healthcare Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Health Reimbursement Accounts (HRAs), and Dependent Care FSAs. Grasping the nuances of these accounts will help you make better decisions, enhance your savings, and fully
As employers plan their benefits programs for 2025, they face the daunting task of managing costs while ensuring high-quality healthcare options for their workforce. The annual premium average for employer-sponsored family coverage in 2023 was $23,968, with employees contributing an average of 27.4%, or $6,575, according to the KFF Employer Health Benefits Survey. However, access to healthcare is only the first step. Many employees struggle to navigate the complex healthcare system, often seeking medical services
A recent study by Willis Towers Watson (WTW) indicates that 72% of U.S. employees now prefer to stay with their current employers, marking a shift in workforce dynamics. This trend presents an opportunity – especially for small- and medium-sized businesses – to gain a competitive edge by offering strategic, appealing benefits packages. The annual open enrollment period is pivotal for companies to reinforce employee loyalty. A well-structured benefits package that reflects employee priorities can significantly
As we enter the last full month of summer, many employers are already working to develop their benefits programs for 2025. Creating a benefits plan that pleases everyone, especially in a diverse workforce, can seem impossible. To be successful, it is vital to identify which types of benefits various employee groups require. The secret to a successful scheme is asking the right questions that engage employees and meet their needs. What Are Targeted Questions? Employers
Healthcare costs in America have risen significantly since the 1970s, leading many employers to expect modest yearly cost increases in the benefits they offer. However, current economic conditions, an aging population, and increased costs related to managing chronic conditions have led to less manageable increases for many employers. Here are five ways TPAs can help employers continue offering high-value benefits while working to control rising benefits costs. #1 Ask Participants What They Need Before considering