Heath Savings Accounts for Your Business
Give your employees the benefit of choice by offering a Health Savings Account (HSA) program in conjunction with a high-deductible health plan (HDHP). With an HSA, your employees can take control of their own health savings account and make the choices that are the best fit for them and their families. Each HSA is owned and maintained by the individual employee to maximize their decision-making power.
Contribution opportunities
Employees can make a contribution to their HSAs every year that they are eligible. You may also decide to make tax-deductible contributions to HSAs for your employees as an additional benefit. HSA balances automatically roll over from year to year, so employees can build up savings to cover eligible medical expenses as needed and budget for health expenses. If an individual reaches age 55 before the close of a taxable year and has not enrolled in Medicare, they may also contribute an additional amount as a “catch-up” contribution.
Using an HSA
Employees and their families can use their HSA to pay for or reimburse eligible medical expenses, including health insurance deductibles, co-pays, out-of-pocket expenses and certain over-the-counter medications. The Palmetto Bank makes your employees’ HSAs easy to use with a convenient debit card, plus online access.
Tax-free benefits
With an HSA, you and your employees can make deductible contributions and have earnings accrue tax-deferred. The distributions are also tax-free when used for eligible medical expenses.
Local service
There’s no need to navigate a complicated Web site or spend hours on the phone to get answers. The Palmetto Bank services your employees’ accounts locally, so we’re always available and ready to help.
Health Savings Account (HSA): Three great reasons to consider an HSA:
| HSA Offers |
Employer Benefit |
Employee Benefit |
| 1. Healthcare Savings |
Initial Cost Savings |
Lower Premiums |
| 2. Tax Savings Opportunity |
Contributions made on behalf of employees may qualify for deduction on your federal business income tax return |
Pre-taxed payroll employee contribution |
| 3. Promotes Well Care Incentives |
Helps reduce claims which could help reduce annual premiums |
HSA offers financial incentives to use preventive care check-ups |