Cafaro Greenleaf, a national advisory firm for corporate and public retirement plans headquartered in Red Bank, New Jersey, has announced a new service that will provide analysis of health savings accounts (HSAs) for clients.
As the firm explains, HSAs are tax-exempt private savings accounts for adults who are covered by a high-deductible health plan, designed for the purpose of paying or reimbursing qualified current and future medical, dental, vision, alternative, and preventative care expenses for an individual, spouse or family. They were created to lower overall health care costs without compromising quality and choice in medical care.
“With an HSA, you can make tax-deductible contributions to pay for health care costs,” explains Wayne Greenleaf, managing principal of CG. “What you don’t use in any given year will stay invested and continue to grow tax-free. The money saved in a HSA can also be withdrawn for medical expenses without incurring any federal tax liability. In short, an HSA is like a 401(k) for medical expenses, because withdrawals for qualified expenses are tax-free. If you can afford the higher deductible and higher annual max, the combination of a high-deductible health plan and an HSA can help you to build up savings to cover the inevitable out-of-pocket health care expenses you’re likely to encounter in retirement.”
Cafaro Greenleaf ensures a fiduciary process around the selection, monitoring and reporting on the HSA’s investments.
“Many HSAs inefficiently sit in money market accounts and are under-utilized as a retirement savings vehicle,” the firm warns. “From optimal plan design and implementation to in-person education and reporting, Cafaro Greenleaf will ensure participants maximize the benefits that an HSA offers. They will extend their independent advice and tailored support to HSAs, helping clients invest in the future health of their employees.”
More information is available online here.