When it comes to employer-sponsored benefits, a Health Savings Account (HSA) offers the most utility for employer clients. In almost all respects, they deliver superior value relative to 401(k)s, 403(b)s, 457 plans and health Flexible Spending Accounts (FSAs). And as such, HSAs should be a part of every employee benefits package.
Designed to accumulate money on a pretax basis to pay for qualified medical expenses and provide for retirement savings options, HSAs are known for their unique triple-tax advantages. Contributions reduce taxable income, while qualified withdrawals and investment growth within the account are tax-free.
