Health Savings Account
Reduce your out-of-pocket healthcare expenses by leveraging the health reimbursement arrangement your employer has funded for you.
Health Savings Account
A health savings account (HSA) offers your employees a tax-advantaged way to save and pay for qualified out-of-pocket healthcare expenses. The employee must be covered by a high-deductible health plan to be able to take advantage of a HSA. Through OCA’s HSA platform, employers can easily implement HSAs within your employee group. Easing the HR burden must be a part of any effective Health Savings Account solution. OCA has designed it’s HSA program with both the employee and employer in mind, and getting started is quick and easy!
HSA funds must be held by an authorized Trustee or Custodian. OCA’s agreement with National Advisors Trust allows us to bring a first in class HSA solution.
Are your employee’s looking for an HSA solution?
OCA’s HSA platform allows your employees to have online enrollment and gain instant access to their account, 24/7, with management and investment tools, electronic receipt and claim storage, debit card, professional account assistance, and more!
Frequently Asked Questions
Help your employees make the most out of their HSAs. OCA is here to provide all the tools and resources possible.
Do employees get a tax benefit from an HSA?
Employee contributions can be made to a HSA on either a pre-tax or post-tax basis. When employees make contributions pre-tax it is done through a Section 125 plan (also called a salary reduction or cafeteria plan), generally through direct deposit of payroll. If employees contribute funds on an post tax basis, the amount can be deducted from their taxable income.
Can employers make pre-tax contributions to their employees’ HSAs?
Yes. Employers may make pre-tax contributions to their employee’s HSAs if they have a cafeteria plan in place that provides for HSA contributions. These contributions are not subject to withholding from wages for income tax or subject to FICA, FUTA or the Railroad Retirement Act.
How are contributions treated for owners, shareholders, or partners?
Owners and officers with greater than two-percent share of a Subchapter S corporation, or partners in a partnership or LLC, cannot make pre-tax contributions to their HSAs by salary reduction. Any contributions made to their HSAs by the company are taxable as income. However, they can make their own personal contributions to their HSAs and claim the contributed amount as a deduction on their personal income taxes.
Does an employer have to make contributions to an employee’s HSA?
No. Employers are under no obligation to make any contributions to their employees’ HSAs. Many employers find that making a contribution to employees’ HSA accounts may help improve adoption of HDHPs and HSAs, especially if they are transitioning from a more traditional type of health coverage.
Can you combine an HSA with an FSA?
Yes. But only a limited-purpose FSA so as not to duplicate the coverage provided by the HSA. The limited-purpose FSA is designed to complement the HSA and may be established to pay for eligible vision and dental expenses. The FSA is not permitted to cover medical expenses because the tax-favored HSA is used to fund those costs.
How often can an employee adjust their HSA contribution when contributing through a cafeteria plan?
Employees contributing to an HSA through a cafeteria plan may make adjustments to their contributions at any time, as long as the change only affects future contributions.
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