The PSCA wants its members to be OK with HSAs.
The Plan Sponsor Council of America, Chicago, has created a committee to determine how health savings accounts can play a greater role in retirement readiness.
“We have anecdotal evidence from members that participants are looking at HSAs as a retirement vehicle as opposed to just addressing health care,” said Tony Verheyen, executive director, in an interview.
The committee will direct research and provide information on best practices to members regarding HSAs, which are available to participants in high-deductible health plans and offer participants a triple tax advantage. Contributions are made with pretax dollars; investment gains within HSAs are tax-free; and withdrawals from HSAs are tax-free for qualified medical expenses.
Mr. Verheyen said PSCA's role will focus on the investment and savings opportunities within the HSA structure. The first step? PSCA is conducting a survey to identify plan design features and administrative practices. A link to the survey is available on PSCA's website. Registration is required.
Survey results will be released at PSCA's annual conference in May in Chicago.