Toll Free 800.831.3587

The Exchange

Offering the latest news and leading insight.
HSAs & Small Business Owners | Paula Coffield

A health savings account, or HSA, is a tax-advantaged medical savings account available to individuals enrolled in high-deductible health plans (HDHP). This savings account has many benefits for the individual, but today, more small business owners are utilizing these accounts  to help control their health care benefit expenses.

The HSA legislation allows employers and employees to make pre-tax contributions into a savings account that is designed specifically for medical expenses. In order for an HSA to be used, it must be combined with a qualifying high-deductible health insurance plan  that carries a deductible of at least $1,250 for an individual and $2,500 for families. (These minimum deductibles  are established for 2013 and subject to increase in future years).   The HSA contribution limits in 2013 were also increased allowing you to contribute up to $3,250 to your account if you have individual coverage and $6,450 if you have family coverage.  Please click here for more information.

HSAs are specifically designed to give people a fund from which to take the money to pay their deductible should they need health care services in a given year. Small-businesses are also realizing that by offering the HDHP, they are able to reduce their overall premium cost since these higher deductible plans generally have lower premiums.  Many employers are using the savings to contribute to the HSA’s for their employees and encouraging the employees to contribute as well.  Any money in the HSA at the end of the year that is not spent on medical care will stay in the account to help cover future expenses.

Not only can small-business owners use HSAs and HDHP’s to help reduce the overall  premium expense, but they can get a tax benefit as well since the money that is contributed to HSAs is not taxed. The bottom line is that high-deductible health insurance plans can help reduce premium cost and give employers and employees incentive to contribute the HSA to help cover out of pocket medical expenses.

Click here to learn more about HSAs and the annual contribution levels for individuals and for families.

Source: irs.gov 

Paula Coffield

Meet With Us

We are ready to discuss your financial needs. Scheduling a time to meet with us is simple, just click here.

©2014 Delta Trust & Bank | Privacy & Security

This blog does not necessarily reflect the opinion of Delta Trust & Bank or any subsidiaries. They are the opinion of the author.

For bank products or bank specific posts:

By operation of federal law, beginning January 1, 2013, funds deposited in a noninterest-bearing transaction account (including an Interest on Lawyer Trust Account) no longer will receive unlimited deposit insurance coverage by the Federal Deposit Insurance Corporation (FDIC). Beginning January 1, 2013, all of a depositor's accounts at an insured depository institution, including all noninterest-bearing transaction accounts, will be insured by the FDIC up to the standard maximum deposit insurance amount ($250,000), for each deposit insurance ownership category

For any posts or products related to Delta Trust Investments, Inc., Delta Trust Insurance or the trust department:

Not Insured by FDIC or any Federal Government Agency. May Lose Value. Not a Deposit of or Guaranteed by a Bank or any Bank Affiliate.

Any customer who should happen to be dissatisfied with the service provided by Delta Trust Investments, Inc., is invited to write to:

James Alger, President, Delta Trust Investments, Inc. | P.O. Box 17607 | Little Rock, AR 72222 | 501-907-2297 or 1-877-349-9333, or Email James Alger.

Delta Trust Investments Inc. is a member of FINRA* and SIPC*

*By clicking on 3rd party links you will be leaving the Delta Trust Investments Inc website.

Equal Housing Lender Member FDIC

You are leaving delta-trust.com.

Close

You are leaving the Delta Trust Website. Do you wish to continue?

Meet With Us

We are ready to discuss your financial needs. Fill out the form below and someone will be in touch with you.

NOTE: Please do not include sensitive information such as your social security number or account number in your message.

×

Contact Us

We are ready to discuss your financial needs. Fill out the form below and someone will be in touch with you.

NOTE: Please do not include sensitive information such as your social security number or account number in your message.

×