Decision Support Tool that Enables Employees to Optimize HSA & 401(k) Deferrals and Long-term Investments.
- Most employees manage their HSA to cover only current healthcare expenses and thus fail to both capitalize on the tax efficiency of the HSA over the 401(k) and understand / maximize their savings for post- retirement healthcare expenses.
- This decision support software leverages an already existent leading retirement readiness calculator that was built by a top investment management firm by combining it with a HSA calculator.
- Otherwise complicated decisions on how much income to defer into healthcare (both current and future) and retirement benefits while considering personal demographics, current balances, personal income taxes and investment alternatives are simplified and decision execution is automated.
- Integration of data from payroll, 401(k) and HSA creates a single source experience for employees and a vendor agnostic system of record for HR staff.
- The employee experience is simplified with “slider bar” graphics thereby enabling full and immediate visualization of the impact of various deferral rates, investments and retirement needs.
- Potential employer advantages include reduced FICA taxes, increased HDHP participation and reduced post-employment healthcare liabilities while employees have a better pathway to their financial wellness.