Empower Retirement and Optum (part of UnitedHealth Group) have launched a health savings account (HSA) for retirement plan participants – The Empower Health Savings Account.
The Empower Health Savings Account will provide plan participants access to an online financial-planning solution that integrates retirement and health care savings, helping participants prepare for health care expenses now and into retirement.
According to a press release, the Empower-Optum solution will provide a single investment lineup across products, access to investment advisors and retirement planning tools and resources, including health plan selection and enrollment, retirement plan management, inclusion of wellness programs and health savings account management. This solution brings together an individual’s health and retirement portfolio to help them better plan for health care costs and maximize their savings across tax-advantaged programs.
An HSA is a medical savings account available to taxpayers who are enrolled in a high-deductible health plan. When used for qualified medical expenses, the funds within an account are not subject to federal income tax. HSA funds roll over and accumulate year to year and are owned by the participant. Unlike a flexible savings account that’s used for spend-as-you-go expenses, an HSA is designed to help workers save additional funds for healthcare needs in retirement.
The Empower HSA plan will enable participants to identify the gaps in their retirement plan and develop a strategy to take action. Optum and Empower’s technology and planning tools integrate the HSA and the retirement plans to provide analysis and forecasting of the participant’s retirement preparedness.
Through the Empower HSA, employers will gain a way to help their employees plan for the future. Participants will have access to aggregated retirement readiness information, including the retirement plan and health savings account data. Employers will also benefit from streamlined administration through a dedicated partner, and integrated tools and services.
