Employees Setting up Health Savings Accounts (HSA) For The First Time

A health savings account (HSA) is an optional benefit plan that allows employees to set aside pre-tax funds via payroll deductions to pay for certain health care expenses. Employees can only enroll in HSAs when they also enroll in an HSA compatible (typically high deductible) health plan. HSA plans have an annual contribution limit of $3500 for individuals and $7000 for families. It is important to note that HSA plans are different from FSA plans – more information on FSA plans can be found here.