The tax status of health savings accounts can help employees manage potentially higher health coverage costs as the Affordable Care Act is implemented, write Robert Bloink and William Byrnes. Employers may opt for health plans that carry lower premiums and higher deductibles in order to avoid the "Cadillac tax" that will be assessed on plans exceeding $10,200 for individuals or $27,500 for families, Bloink and Byrnes write. HSAs allow employees to make pre-tax contributions to offset higher deductibles, and they provide tax-free earnings and withdrawals, they write.

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