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Health Savings Account

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Recruit & Retain Employees with Stronger Benefits

Healthcare costs are usually unexpected and can take quite a hit on your savings. For business owners looking to offer an enhanced benefit to their employees, a Health Savings Account (HSA) is the perfect way to show employees you care while being able to retain quality workers and attract high-quality staff thanks to a stronger benefits package.

Benefits for Employees

HSAs are a great way to bridge the gap and pay for medical expenses before the deductible of your healthcare plan kicks in. All withdrawals from the account are tax-free when you’re using them for qualified medical expenses*. Employees can also make tax-free contributions to their HSA. Other benefits include:

  • Unused funds roll over year over year
  • Access funds when needed**
  • No minimum deposit requirement to open
  • Employer and employee can contribute to account
  • Earn interest on entire account balance
  • Account remains in employee’s name, regardless of career or life change

*When used for qualified medical expenses. Consult a tax advisor. Qualified expenses include most medical care and services, dental and vision care, weight loss programs, some over the counter medications, mileage, and more.
**You can withdraw funds at any time for any purpose. However, if funds are withdrawn for reasons other than qualified medical expenses, the amount withdrawn will be included as taxable income, and is subject to a 10% penalty tax.

Benefits for Employers

HSAs are a great way to show commitment to employees you want to retain and attract good employees to join your business. Accounts require very little maintenance from your administrative staff. Additionally, HSA benefits for employers include:

  • Tax-free contributions
  • Lower costs with reduced insurance premiums

Learn How You Can Add HSAs for Your Employees

The team at F & M Community Bank can answer any questions you have about the benefits and requirements to offer HSAs to your employees. Contact us online to get your questions answered.

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