The BPAS Advantage

BPAS has been serving client needs since 1973. Only BPAS can offer expertise in all facets of retirement plans and employee benefits. We bring you a vertically integrated HSA solution with the recordkeeper, administrator, clearing firm, custodial, and customer services under one company, one call. We provide a cost-effective and worry-free HSA solution with efficiency, operational accuracy, superior customer service, and the highest levels of security available. BPAS Roadways HSA offers:

Key Features

  • Open architecture investment platform
  • Single sign-on for DC and HSA balances
  • Same investment menu options for Defined Contribution (DC) plan and HSA plans
  • First-dollar investment
  • 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
  • Proactive and responsive service, with accurate, high quality plan administration
  • 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
  • One-stop administration means everything you need to set up and maintain an HSA can be done through BPAS. One company. One call.

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.

Why Offer an HSA?

 

Healthcare is a key benefit for attracting top talent. It’s also one of the most expensive. Paired with an HDHP, HSAs can result in significant savings for employers.

HDHPs typically come with lower insurance premiums than traditional insurance plans. Many employers contribute those premium savings to employee HSAs. Employees use the HSA to pay for deductibles, co-pays, coinsurance, and other eligible expenses now or save the funds for retirement.

With BPAS Roadways HSA administration, employers
save money. Employees have more spending money per paycheck, save more money for retirement, and make money by investing.

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).