Enrolling in an eligible plan allows workers to access triple tax advantages, including tax-free contributions, investment growth, and withdrawals for qualified medical expenses. Direct payroll contributions under a Section 125 cafeteria plan also bypass Social Security and Medicare taxes entirely. However, participants must manage strict IRS deductible and out-of-pocket thresholds that require significant personal cash reserves before insurance pays for care.
Key points
Eligible coverage is now available through 63% of companies employing 50 or more workers.: Eligible coverage is now available through 63% of companies employing 50 or more workers.
Workers can contribute up to $4,500 for individuals or $9,000 for families while avoiding…: Workers can contribute up to $4,500 for individuals or $9,000 for families while avoiding taxes on qualified medical spending.
Traditional plans with higher premiums remain the safer route for employees lacking cash…: Traditional plans with higher premiums remain the safer route for employees lacking cash reserves to cover substantial deductibles.
Sources checked by our analysis pipeline: 1
Healthcare affordability was part of the midterm election cost-of-living debate.
It remains to be seen how a new Congress might try to address that pain point. Now, as workers choose their 2027 health insurance coverage, millions face a more immediate decision: whether to pick a plan that lets them contribute to a health savings account, or HSA.
The question is whether an HSA-eligible plan with lower premiums and tax benefits is worth the higher deductible and potential out-of-pocket costs.
HSAs come with a 'triple tax advantage'
One noted advantage of an HSA is its tax benefits.
"You have a triple tax advantage," said Kalei Cadinha-Pua'a, vice chair and CEO of Honolulu-based Cadinha & Co., which ranked No. 21 on this year's CNBC Financial Advisor 100 list.
Employer and employee contributions go into the fund before taxes; earnings in the account aren't taxed while they remain in the HSA; and withdrawals for qualified medical expenses are tax-free.
Plus, financial advisors say employees often overlook another potential tax savings. HSA contributions made through an employer's Section 125 cafeteria plan generally aren't subject…
The Wall Street investment firm has elevated over one hundred employees to its most elite operational class while withholding typical diversity metrics. This decision departs from standard transparency practices regarding gender and ethnic representation across corporate leadership. The absence of this background information obscures the firm's ongoing progression toward workforce inclusion goals.
A sharp retreat across the technology sector on Thursday hit energy infrastructure plays as market sentiment turned risk-averse. Investors are growing increasingly apprehensive that data-center expansion projects could stall following the recent U.S. midterm elections. The resulting pullbacks signal mounting sensitivity surrounding the pace and delivery of key digital buildouts.
Democratic midterm election victories sparked widespread investor concern after voters nationwide approved extensive local curbs on technology infrastructure. These ballot initiatives threaten to stall massive future computing capacity, driving steep losses across chipmakers and data infrastructure firms. Consequently, capital fled into traditional safe-haven assets, sending gold to a multi-week peak.