Wachovia HealthAdvantageSM Health Savings Account (HSA)
A Wachovia HealthAdvantageSM Health Savings Account (HSA), coupled with a high deductible health plan (HDHP), can help reduce your healthcare costs and give your employees more control over their healthcare dollars. An HSA is a tax-advantaged account that can be used to pay for current or future qualified medical expenses. HSAs are offered only in conjunction with a high deductible health plan.
How Your Business Can Benefit
Offering the Wachovia HSA can benefit your business in a number of ways:
Lower Healthcare Costs - HDHPs shift part of the cost of healthcare to the employee, potentially reducing your costs and increasing your profitability.
Tax Advantages - Deduct contributions you make on behalf of your employees, subject to certain limitations. Contributions can also be excluded as a deduction on your company's tax return. They are not generally subject to withholding for income tax or other employment taxes.
Fewer Administrative Burdens - Let Wachovia handle claims administration and recordkeeping for employee HSAs—so you can spend time running your business.
Employee Recruiting and Retention - Offering a competitive alternative to traditional high-premium healthcare plans can help attract and retain key employees.
How Your Employees Can Benefit
The Triple-Tax Benefit - (1) The HSA can be funded on a pre-tax basis, (2) distributions made from the HSA for qualified medical expenses are tax-exempt and (3) investment income in the HSA grows tax-deferred and distributions of income for qualified medical expenses are tax-exempt.
Control Over Their Funds - Account holders own their accounts and control the decisions about how to spend and invest their healthcare dollars.
Account Balances Roll Over Year to Year - The account holder is under no obligation to use the benefits during a particular plan year. What they don't use continues to grow interest on a tax-favored basis.
Portability - Account holders may continue their account if they change places of employment, and Wachovia will still be here to service those accounts.
Flexibility - At age 65, or when an account holder becomes covered by Medicare, the money in an employee's account can be used for any reason without penalty. They still pay income tax on these distributions.*
Talk To Us
The Wachovia HSA can help you control the cost of providing healthcare to your employees, deliver tax advantages for your company and provide a way for employees to save on a tax-deferred basis to help meet long-term healthcare expenses.
If you'd like to apply for a Wachovia HSA, please call us at:
(877) 717-0100
Monday - Friday
7:00am - 7:00pm ET
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* Distributions for non-qualifying medical expenses prior to age 65 or the time you become eligible for Medicare will be subject to ordinary income tax, as well as an additional 10% penalty.
The information contained herein and any information provided by employees and representatives of Wachovia Bank and its affiliates is for educational purposes only and does not constitute investment, financial, tax or legal advice. To the extent that information contained herein concerns tax matters, it is not intended or written to be used, for the purpose of avoiding penalties that may be imposed by law. Please contact your personal investment, financial, tax or legal advisor regarding your specific needs or situation.
