PLANSPONSOR - April/May 2021 - 22

TOTAL BENEFITS | HSAs
HEALTH
SAVINGS
ACCOUNTS
How to utilize design, metrics and education
to improve employee engagement in HSAs
J
eff Dorfman, principal of Qualified Plan Advisors in Houston, has been watching
health savings accounts (HSAs) develop through the lens of the 401(k)'s development.
" The similarities are interesting, " he says. Employers originally viewed a 401(k) plan
as a satellite employee benefit, but, over time, they came to see it as central to retirement
planning-and as that happened, they started paying much more attention to the vehicles.
" HSAs have mirrored the same evolution, " Dorfman says. The accounts have yet to
be considered a central benefit by most employers, he says, but he sees that coming. " One
reason is that, from an employee perspective, an HSA is arguably the single most powerful
wealth-creation tool that an employer can offer as a benefit. It has all of the savings benefits
of a 401(k) but additional features that, in some ways, make it more powerful. "
Unlike with a 401(k), HSA money may be withdrawn tax-free if it pays for qualified
medical expenses. And, unlike health insurance or a 401(k), an HSA is both a benefit for
employees' near-term needs and their long-term needs, he says. " It's the only employer
benefit that is both a current benefit and a future benefit. "
Design Options
Like with a 401(k) plan, the design of an HSA benefit plays an important role in employee
engagement, especially if the employer makes a contribution. " Definitely, making an
employer contribution is one of the best practices if you want to encourage uptake of HSAs
and HSA-eligible health plans, " says Begonya Klumb, head of HSAs at Fidelity Investments
in Boston. " Seventy-eight percent of our HSA clients offer some form of employer contribution,
and the majority make a once-a-year contribution, which tends to be at the beginning
of the year. " It typically comes in the form of a flat-dollar contribution, she says, and
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PLANSPONSOR - April/May 2021

Table of Contents for the Digital Edition of PLANSPONSOR - April/May 2021

Ready Solution?
Tiptop Health Savings Accounts
2021 Defined Benefit Administration Survey: Shedding Light on DB Plans
How TRO Might Benefit Plans
By Popular Demand
What's the ROI?
PLANSPONSOR - April/May 2021 - Cover1
PLANSPONSOR - April/May 2021 - Cover2
PLANSPONSOR - April/May 2021 - 1
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PLANSPONSOR - April/May 2021 - Ready Solution?
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PLANSPONSOR - April/May 2021 - Tiptop Health Savings Accounts
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PLANSPONSOR - April/May 2021 - 2021 Defined Benefit Administration Survey: Shedding Light on DB Plans
PLANSPONSOR - April/May 2021 - 29
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PLANSPONSOR - April/May 2021 - How TRO Might Benefit Plans
PLANSPONSOR - April/May 2021 - 33
PLANSPONSOR - April/May 2021 - By Popular Demand
PLANSPONSOR - April/May 2021 - 35
PLANSPONSOR - April/May 2021 - What's the ROI?
PLANSPONSOR - April/May 2021 - 37
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