HSA Bank, a division of Webster Bank, recently announced that it will offer an employer-provided tuition reimbursement benefit solution that can help employees pay for their degree, tuition, specialized training and other costs associated with ongoing education.
According to the announcement, the employer-funded tax savings program will allow employers to determine what expenses are eligible for reimbursement and the annual reimbursement limits. This may include tuition, books and other required learning materials, registration fees, lab fees, exam fees and more. Once eligible expenses are approved, employees may get reimbursed on a tax-free basis up to the IRS annual limit of $5,250.
TRAs provide value for benefit providers and participants by helping employees advance in their career by attending school or specialized training programs, and by providing multiple options on how to use the funds, while supporting employers’ recruitment and retention strategies, the firm notes.
Additionally, TRAs have flexibility as participants can sign up for the program at any time during the year, based on the employer’s plan, rather than waiting for the next Open Enrollment period.
“Tuition Reimbursement Accounts are an excellent addition to our comprehensive benefits offerings,” said Chad Wilkins, President of HSA Bank. “It’s a unique time for employees and employers. We’re seeing record-high student loan debt, and an ongoing talent and retention challenge for employers. TRAs will help make education more affordable, while helping employers show their dedication to professional development.”
More information on TRAs is available here.