Business Health Savings Account
Put your employees’ wellness in the spotlight by offering a Health Savings Account—a smarter way to save for qualified health expenses.
Business Health Savings Account
Put your employees’ wellness in the spotlight by offering a Health Savings Account—a smarter way to save for qualified health expenses.
What is a Business HSA?
A Business Health Savings Account (HSA) is a tax-advantaged savings account that employers or self-employed individuals can use to save for employees’ or their own qualified medical expenses. It is typically paired with a high-deductible health plan (HDHP) and offers several key benefits.
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Benefits of a Business HSA
- Contributions, earnings, and withdrawals for qualified expenses are all tax-free.
- Funds can be used for a wide range of medical expenses, including doctor visits, prescriptions, and equipment.
- The account is owned by the individual, not the employer, even if they change jobs or retire.
- No “use it or lose it” rule—balances carry over each year.
Start Saving for Your Health
- Minimum deposit to open: $25.00
- Earns interest
- Monthly service charge: $3.00
- To avoid a monthly surcharge, keep a $500.00 minimum average daily balance or have a monthly direct deposit into the account.
What is a Business HSA?
A Business Health Savings Account (HSA) is a tax-advantaged savings account that employers or self-employed individuals can use to save for employees’ or their own qualified medical expenses. It is typically paired with a high-deductible health plan (HDHP) and offers several key benefits.
Benefits of a Business HSA
- Contributions, earnings, and withdrawals for qualified expenses are all tax-free.
- Funds can be used for a wide range of medical expenses, including doctor visits, prescriptions, and equipment.
- The account is owned by the individual, not the employer, even if they change jobs or retire.
- No “use it or lose it” rule—balances carry over each year.
Start Saving for Your Health
- Minimum deposit to open: $25.00
- Earns interest
- Monthly service charge: $3.00
- To avoid a monthly surcharge, keep a $500.00 minimum average daily balance or have a monthly direct deposit into the account.
Frequently Asked Questions
- Individual coverage: $4,300.
- Family coverage: $8,550.
- Catch-up contributions (age 55+): Additional $1,000 per individual.
In general, employees can use HSA funds to pay for any qualified medical expense, which generally include: medical care, prescription drugs, and payment for long-term care.
Generally, health insurance premiums are not qualified medical expenses however, in certain circumstances they can be qualified (e.g., certain amounts of Long Term Care Insurance or Medicare part A or part B for qualified individuals).First, as employees add funds into an account, your contributions reduce annual taxable income. Second, the funds withdrawn to pay for qualified medical expenses remain untaxed. Third, they save again when funds in accounts earn interest tax-free.
Any eligible individual may contribute to an HSA. For an HSA established on behalf of an employee, both the employee and the employer may make contributions. Additionally, family members may make contributions on behalf of other family members as long as the other family member is an eligible individual (i.e., has a qualified HDHP and is not otherwise insured).
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Our team of experts is ready to answer any of your HSA questions, for business owners and their employees.
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