Wondering how much tax savings is available through both an FSA and HSA in 2024? Here’s the answer, along with a link to eligible FSA purchases.
Test Your HSA Proficiency
Employer disconnect: take this quiz to see what you, the employer, think your employees know about HSAs. The results might surprise you.
Other blogs you may be interested in:
A recent survey conducted by Alegius Technologies, a provider of healthcare and benefit administration platforms, tested the consumer and employer gap of HSA (Health Savings Account) know-how. Their findings were significant with extremely varied perceptions of what the employers thought their employees understood about HSAs, in contrast to what employees actually knew. Take the quiz and see how you fare!
- Contributions that I make to an HSA are tax-free.
- I can leverage my HSA savings to cover future healthcare expenses into retirement.
- I gain access to my full annual HSA election amount on the first day of the plan year.
- If my balance reaches a certain amount, I can invest my HSA contributions.
- I can contribute to an HSA regardless of which health plan type I’m enrolled in.
- I can change my annual election amount at any time that I want to.
- I can have a healthcare FSA and an HSA at the same time.
- If I don’t use my funds by the end of the plan year, I lose them.
- My employer owns my HSA.
(See answers below...)
According to the survey results, HSAs are on the rise among employer offerings, but only 30% of HSA account holders passed this basic quiz. Many respondents acknowledged that they weren’t enrolled in an HSA because of the fear of the unknown, as well as a lack of understanding to how it works. The findings also showed a huge gap with how employers thought they were communicating in regards to content clarity, depth of information, variety of communication channels, level of content personalization, and the frequency of communication.
Whether or not you offer an HSA-qualifying plan, you may want to test your employees’ HSA know-how to make sure they understand how the account works, or to help them understand what they are missing. Our experts are available to help communicate the many advantages and intricacies of an HSA. Please contact us to setup an appointment today, or to simply get more information.
Answers to HSA proficiency test:
- Contributions that I make to an HSA are tax-free. TRUE
- I can leverage my HSA savings to cover future healthcare expenses into retirement. TRUE
- I gain access to my full annual HSA election amount on the first day of the plan year. FALSE. This is the case with an FSA, but not with an HSA, as any amount of funds to be used from an HSA must first be funded.
- If my balance reaches a certain amount, I can invest my HSA contributions. TRUE
- I can contribute to an HSA regardless of which health plan type I’m enrolled in. FALSE. You must be enrolled in a qualifying high-deductible health plan to have an HSA.
- I can change my annual election amount at any time that I want to. TRUE
- I can have a healthcare FSA and an HSA at the same time. FALSE. You can have a “limited FSA” to cover non-major medical items, such as dental and vision, but not a medical FSA if also enrolled in an HSA.
- If I don’t use my funds by the end of the plan year, I lose them. FALSE. Again, this is the case with an FSA where funds are use-or-lose; however, with an HSA, contributions roll over from year to year.
- My employer owns my HSA. FALSE. An HSA belongs to you, the consumer.