This is a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. By using untaxed dollars in a Health Savings Account (HSA) to pay for deductibles, copayments, coinsurance, and some other expenses, you may be able to lower your overall health care costs. HSA funds generally may not be used to pay premiums.
While you can use the funds in a HSA at any time to pay for qualified medical expenses, you may contribute to an HSA only if you have a High Deductible Health Plan (HDHP) — generally a health plan (including a Marketplace plan) that only covers preventive services before the deductible. For plan year 2019, the minimum deductible is $1,350 for an individual and $2,700 for a family. For plan year 2020, the minimum deductible for a HDHP is $1,400 for an individual and $2,800 for a family. When you view plans in the Marketplace, you can see if they’re "HSA-eligible."
For 2019, if you have a HDHP, you can contribute up to $3,500 for self-only coverage and up to $7,000 for family coverage into a HSA. For 2020, if you have a HDHP, you can contribute up to $3,550 for self-only coverage and up to $7,100 for family coverage into a HSA. HSA funds roll over year to year if you don't spend them. A HSA may earn interest or other earnings, which are not taxable.Return to Top
Flynn Financial’s Executive Benefits practice specializes in the design, implementation, and administration of executive benefit plans. Our consultants and technical specialists analyze and create plans and financing programs to meet the needs of private practices, businesses, and corporations of every size and description. Benefit programs are strategically crafted to align with overall compensation philosophies and financial objectives.
Flynn’s Executive Benefits team designs and administers executive benefits programs to address your specific needs and objectives. Our customized services include:
Implementation and Administration
For more information about Flynn Financial’s executive benefits solutions, please contact us.Return to Top
If you're lucky enough to work for a company that provides a 529 savings plan, don't miss out! There are a number of advantages to participating in a company-sponsored 529 plan:
Especially with high-ticket items like college education, you can never have too much help saving. Make sure you take advantage of all the tax and other savings available in your employer's 529 plan when considering how to pay for college!Return to Top
How an Employee Stock Ownership Plan (ESOP) Works
ESOP's provide a variety of significant tax benefits for companies and their owners. ESOP rules are designed to assure the plans benefit employees fairly and broadly.
Employee ownership can be accomplished in a variety of ways. Employees can buy stock directly, be given it as a bonus, can receive stock options, or obtain stock through a profit-sharing plan. Some employees become owners through worker cooperatives where everyone has an equal vote. But by far the most common form of employee ownership in the U.S. is the ESOP, or employee stock ownership plan. Almost unknown until 1974, ESOP's are now widespread; as of the most recent data, 6,460 plans exist, covering 14.2 million people.
Companies can use ESOP's for a variety of purposes. Contrary to the impression one can get from media accounts, ESOP's are almost never used to save troubled companies— at most a handful of such plans are set up each year. Instead, ESOP's are most commonly used to provide a market for the shares of departing owners of successful closely held companies, to motivate and reward employees, or to take advantage of incentives to borrow money for acquiring new assets in pretax dollars. In almost every case, ESOP's are a contribution to the employee, not an employee purchase.Return to Top
When employees face fewer financial worries and distractions, employers' benefit from a more focused, engaged, and productive workforce — employee financial wellness programs can help employees find balance and control over their finances, now and throughout their lifetime. Improving employees’ financial wellness can lead to heathier employees, reduce absenteeism and lower turnover rates while raising employee satisfaction and improving the employer brand. However, for financial wellness programs to be successful they need to do more than just provide education they need to result in employees taking appropriate actions that lead to financial success.Return to Top
What are employee benefits?
We often get asked – what are employee benefits? Employee benefits, also known as perks or fringe benefits, are provided to employees over and above salaries and wages. These employee benefit packages may include overtime, medical insurance, vacation, profit sharing and retirement benefits, to name just a few.
Why are employee benefits important?
Offering benefits to your employees is important because it shows them you are invested in not only their overall health, but their future. A solid employee benefits package can help to attract and retain talent. Benefits can help you differentiate your business from competitors.Return to Top