Skip to main content

You are here

Advertisement

Do You/Will You Work with HSAs?

Health savings accounts, or HSAs, were a hot topic at the NAPA 401(k) Summit – and pending legislation could boost their visibility and usage. In this week's reader poll, we’d like to know if you’re working with these accounts – or expect to in the future.

As you probably know, HSAs have a triple tax advantage:


  • HSA contributions are pre-tax, so you will be taxed as if you make less money than you do.

  • Neither the principal nor earnings in the HSA are subject to taxation, so the entire amount invested grows tax-free.

  • The money is not taxed when it’s withdrawn, so it can go entirely toward paying qualified medical expenses.


While HSAs have been slow to catch on, more than a third of HSAs with investment assets beyond cash ended 2015 with a balance of $10,000 or more, according to a report by the non-partisan Employee Benefit Research Institute (EBRI). It is estimated that in total, there were 16.7 million HSAs holding $30.2 billion in assets as of Dec. 31, 2015.

This week, we’d like to know if you’re currently working with HSAs, if you’re thinking about working with HSAs, and if you think there is a risk that individuals might choose to save in HSAs, rather than in traditional retirement savings accounts like 401(k)s.

Reply to this week’s NAPA Net reader poll at https://www.research.net/r/T2MRW2M.

And we’ll wrap it all up for you on Friday!

Advertisement