Vermont Businesses and Medical Insurance Plans – What About HSAs?
If an employer decides not to offer an employer-sponsored plan, can they still contribute to their employees’ Health Savings Accounts pre-taxed (if their current Section 125 allows it)?
According to Vermont Health Connect, the employer can offer an HSA or HRA without offering a plan. Just keep in mind that the consequences of that are:
– the employer would still be subjected to the Vermont Assessment of $476 per year per uncovered employee after the first four
– the employees can’t use the money in their HSAs to pay for insurance premiums
– the employees would have to choose HSA-compatible high-deductible plans
The IRS did just state that if employers do this, they will still get the same tax benefits for contributing to employees HSAs that they do now.
Davis & Hodgdon Associates has been assisting businesses and individuals in the Burlington Vermont Metro area for more than 20 years. If you have any questions or concerns please feel free to call 802.878.1963 or email [email protected].