Tax Day in the U.S. is anticipated by those receiving refunds; dreaded by those who owe. April 15 is a national touchpoint that creates an opportunity to promote the multiple tax advantages of a health savings account (HSA).
HSAs make sense
When coupled with a High Deductible Health Plan (HDHP), an HSA is a great choice for many participants.* Some of the beneﬁts of an HSA include:
● Aﬀordable. HDHPs have lower premiums and higher out-of-pocket costs. HSAs make these plans work.
● Flexible. Participants have more control over how they spend their healthcare dollars on a variety of healthcare expenses such as dental, vision, and alternative medicine.
● Portable. Participants own their HSA, allowing them to keep their savings when they change jobs or retire.
● Valuable. Participants can build equity because an HSA acts as a long-term savings vehicle. (More so if employers contribute to participants’ HSAs.)
● Deductible. HSAs allow participants to save pre-tax dollars on healthcare expenses, reducing their taxable income, which results in tax savings.
*Depending on individual circumstances and changes in tax laws, there could be limitations on and disadvantages to contributing to an HSA. Employers should encourage participants to consult a qualiﬁed ﬁnancial advisor about the potential impact of participating.
HSAs make cents (and dollars)
There are more advantages than are commonly understood. Participants can beneﬁt from these three and more:
- There is an April 15th loophole that allows participants to retroactively fund their HSA after they know their qualifying expenses from the previous year.
- Adult children who ARE covered under a parent’s health plan AND who are NOT claimed as a dependent on a parent’s tax return, can fund their own HSA.
- Qualifying expenses can be reimbursed years later. And HSA qualifying expenses are defined more broadly than an insurance company’s ⏤ ranging from aspirin to acupuncture (with a receipt). These HSA reimbursements are not taxed, unlike withdrawals from a 401(k), making HSAs potential rainy-day accounts.
Piggybacking on tax season messages
Tax season creates a timely opportunity to remind participants of the tax advantages that a health saving account beneﬁt oﬀers them.
Below are a few ideas to help get you started.
● Use tax season as a natural segue to a discussion of the tax beneﬁts of an HSA, piggybacking your internal marketing eﬀorts on other media messaging about tax deadlines.
● Remind potential participants that they have until April 15 of the current year to fund HSA dollars that can be used for qualiﬁed expenses incurred the previous year.
● Focus on a one or two-week campaign around April 15th for maximum impact, but don’t limit eﬀorts to educate about the beneﬁts of this valuable, but often overlooked, beneﬁt all year long.
Need more ideas or help executing the ideas above? Contact Smith Communication Partners; participant communication is what we do.More Ideas