The BPAS Advantage

Health Savings Accounts (HSAs) offer tremendous advantages to  employees and can be a breeze with the right administrator. At BPAS, we’re experts in retirement plans and administration. That’s what makes the BPAS Roadways HSA different. With our vertically integrated structure, we serve as plan administrator, recordkeeper, clearing firm, and asset custodian, all under one roof.

Key Features

With the Roadways HSA, we offer:

  • An open architecture investment platform without low-yielding bank deposit requirements–providing the strongest menu of investments without conflicts of interest in fund selection, review, or monitoring
  • Typically the same investment menu for the Defined Contribution (DC) plan and the HSA
  • Single sign-on for DC and HSA balances
  • First-dollar investment
  • One-stop administration means everything you need to set up and maintain an HSA can be done through BPAS
  • Online contribution rate changes and tools make account management simple and convenient
  • Level-compensation fee arrangement (no hidden fees)
  • Seamless operational environment with the latest technology and features in the marketplace
  • Easy administration, online enrollment, and a full range of education tools
  • Free debit card so participant access to funds is fast and easy
  • Help with retirement–after age 65, employees can use HSA funds for non-medical purposes

Designed For

Although HSAs and DC plans have similarities, the best strategy is to offer them in tandem to maximize tax savings and help employees plan for their future.  BPAS can take care of both. One company. One call.

Comprehensive Solution

Getting on the path to controlling healthcare dollars is easy with the BPAS Roadways HSA. Employers enjoy individualized, proactive client service with a single point of contact, and employees will appreciate our full-service US-based Participant Services Center. It’s a comprehensive, fully integrated solution that also features:

  • Robust, secure website
  • Mobile app
  • Multiple contribution options
  • Automatic rebalance of investments
  • On-demand reports
  • Employee education tools and resources
  • Level compensation

To learn more about the Roadways HSA, email TrustSales@bpas.com or call 866-401-5272.

More Reading

HSA Services

Until recently, the 401(k) Plan was the focal instrument for helping America’s workforce save for their retirement. It’s no secret that the ever-increasing costs of offering healthcare benefits to employees are one of the highest expenses of a company. As a result, many employers are adding a High Deductible Health Plan (HDHP) to their array of healthcare offerings to provide some reprieve. Offering an HDHP typically costs an employer significantly less than a traditional plan due to the lower premium rates, and delivers savings to participants as well.

What is an HSA?

Health Savings Accounts (HSA) are tax-advantaged medical savings accounts available to employees who are enrolled in an HSA-Qualified HDHP. Both employees and employers can make tax-free contributions to an employee’s HSA account. Because the premiums are significantly lower than a traditional comprehensive healthcare plan, employers and employees will normally use some of the cost savings they experience to contribute to the HSA.

Each year, the IRS sets specific limits on what qualifies as an HSA-eligible HDHP, as well as the contribution limits going into the accounts. Current IRS limits are:

2020 Single Family
Minimum Annual Deductible $1,400 $2,800
Out of Pocket Maximum $6,900 $13,800
Contribution Limit $3,550 $7,100
Additional contribution if age 55+ $1,000 $1,000

 

2021 Single Family
Minimum Annual Deductible $1,400 $2,800
Out of Pocket Maximum $7000 $14,000
Contribution Limit $3,600 $7,200
Additional contribution if age 55+ $1,000 $1,000

 

Similar to a 401(k) Plan, participants have a set of mutual funds into which they can direct investments. Through the BPAS true open-architecture investment platform, we offer high quality investment menus across the full range of asset classes. Employees benefit from first-dollar investment access in their account, a stable value fund, and a range of other funds with different investment objectives and risk profiles.

Tax Advantages

There are three key tax advantages to HSAs, which can provide for significant tax savings to both employers and participants:

  1. Contributions to the HSA are generally not subject to federal income tax.
  2. Investment earnings in an HSA account typically grow tax-free.
  3. Distributions from an HSA are tax-free—as long as the dollars are used to pay for a qualified medical expense.

Contributions employees elect to make into their HSA also provide employers with a tax benefit by reducing their FICA/payroll tax liability. Besides the lower premium costs, this tax savings is another reason employers should encourage employees to participate in an HSA and maximize employee engagement in the plan.

The IRS Code Section 213(d) defines qualified medical expenses. These expenses generally include deductibles, coinsurance, copays, prescription drugs, dental and vision care, etc. HSA participants will receive a free debit card offering them a fast and easy way to pay for qualified expenses. They can also file claims for reimbursement through our online participant website portal or the BPASClaims App.

Similar to a 401(k) Plan, account balances in an HSA account roll over from plan year to plan year. There is no use-it-or-lose-it rule. HSA accounts are owned by the employee accountholder, so they’re portable and remain with the employee during employment and throughout retirement.

Although HSA accounts and 401(k) Plans do have similarities, we believe the best strategy is to offer these plans in tandem to help your employees succeed in effectively saving for their future. Unfortunately, many Americans are not saving enough for retirement and face many financial uncertainties in their future—especially when it comes to retirement healthcare costs. The HSA serves a dual purpose: to let employees save for both current and future healthcare costs, while preserving 401(k) balances for other non-medical-related expenses during retirement years. And the tax-free use of these funds for healthcare costs in retirement is a major advantage compared to the “tax-deferred” treatment of most DC-Plan distributions (excluding Roth).