What is an HSA?
'Private Health Services plan', 'Health & Welfare Trust', 'Cost Plus' and 'Health Spending Account' are all terms referring to a method of providing employee benefits in a very tax-advantaged method (refer to IT Bulletin 85). The company contributes to a plan on a regular or 'as needed' basis. The employees may then use the funds for any allowable medical expense. For example, one employee may use it for glasses, another for whitening their teeth, and another for orthodontics for their children. We have one client that purchased a treadmill because of doctor's orders to walk more.
Every contribution made by the company is 100% tax deductible, yet every benefit paid is tax free to the employee. This is like getting a tax-free raise!
Who should have an HSA?
- Every company whether small, medium or large should have a HSA to provide key employees with some very flexible benefit planning.
- Every small business owner should have a HSA to pay for all of their personal medical expenses that may not be covered by a formal health plan.
- Every self-employed professional and proprietor should have a HSA to pay all of their medical and dental expenses.
Plan Design, Selection, Implementation
TOLCO Financial $trategies recommends, myFLEXplan as our HSA provider. Let us put a HSA in place for you.