Just more than half of employers position health savings accounts as retirement savings vehicles, according to a survey from Plan Sponsor Council of America.
Of the 181 employers surveyed that offer HSAs, 51.5% said they explain the HSA benefit as a tool for retirement savings.
Of those employers surveyed in March and April, 84.4% make contributions to the HSAs, although a greater percentage of larger employers do so than smaller employers. Among employers with between 1,000 and 4,999 employees, 95% make contributions to their HSAs, while only 68% of employers with between one and 49 employees do so.
Among the employers surveyed, 83.8% offer investment options for HSA contributions other than cash equivalents or money market funds. However, 80.4% require $1,000 or more to be placed in the account before participants can utilize those investment options.
Most employers — 81% — do not mirror their 401(k) investment option lineups and do not plan to do so, while 15% do not do so but have the goal to do so, and 4% said some funds are the same.
When asked about how they primarily educate employees, 57.5% said they do so during open enrollment every year. When asked what their primary education goals were, 47.9% said it was making participants understand the HSA's tax benefits, followed by 19.3% that said understanding contribution limits, and 16.4% said understanding which health-care plans were HSA-eligible.
The survey results are available on PSCA's website.