As employers continue to be mindful of rising health care costs, we’ve seen a noticeable shift toward High Deductible Health Plans. With more individuals in HDHPs, there’s also been a significant increase in the use of Health Savings Accounts as a way to supplement funds for medical-related expenses.
Recently, there have been questions raised within the industry about how the increasing popularity of HSAs may pose a threat to 401(k)s as the deferral vehicle of choice. Despite the increased usage of HSAs, it’s unlikely that their growth has had a substantial impact on 401(k) contributions. In fact, the two vehicles can work well together to better position employees for the future.
