HEALTH SAVINGS ACCOUNT—LOOK OUT FOR YOUR EMPLOYEES, SHOW YOU CARE
Tax-deductible Health Savings Accounts (HSA) from First Bank of Berne offer significant benefits both for employers and their employees. Your staff gains unique triple tax advantages including being able to make contributions with pre-tax dollars plus tax-free gains and withdrawals (certain conditions apply) while you enjoy a federal income tax deduction on the amount you contribute to their HSAs.
Any unused amount carries over to the next year and the money in the HSA belongs to the employee even if they change jobs. Since our Health Savings Account is compatible with most types of High-Deductible Health Plans (HDHP), you can work with virtually any insurance provider that you want.
Our HSAs are easy to set up and enroll your employees. They will have a convenient and secure online portal to manage their accounts.
ARE YOUR EMPLOYEES QUALIFIED FOR A BUSINESS HEALTH SAVINGS ACCOUNT?
An employee will qualify if she/ he is:
- ?An adult covered under a “high deductible health plan” (HDHP) ?
- Not in an insurance plan that has co-pays or a plan that pays anything prior to their deductible amount
- ?Not claimed as a dependent on someone else’s taxes (minors, college students) ?
- Not eligible to be enrolled in Medicare
WHEN AND WHAT TYPES OF CONTRIBUTIONS ARE ALLOWED?
- Employees can make tax deductible contributions to their HSA whether or not their deductions are itemized (any time during the current year and between January 1 st and April 15 th for a prior year)
- If the employee has a HSA account in a different bank, they can also make a rollover contribution once per year into their First Bank of Berne HSA account.
- As an employer, you can make contributions that are not taxed to the employee or to the employer
- Anyone may make a contribution on behalf of an eligible individual and the person receiving the contribution (account holder) gets the tax credit.
- Direct transfers between financial institutions can be made without restrictions.