Who has to offer COBRA?

If you employ at least 20 people, then you鈥檙e likely required to provide COBRA to your qualified beneficiaries. A few factors to consider include:

• Your employee count of 20 must be reached on more than 50% of business days in the previous calendar year.
• Full-time and part-time employees are counted, although part-time employees count as a fraction of full-time employees, and the number of hours the part-time employee works.
• State and local governments are among those that must offer COBRA if the above requirements are met. The law doesn鈥檛 apply to plans sponsored by the federal government or by churches.

What events require offering COBRA?

If your business/organization is required to offer COBRA coverage, then you must offer it to an individual who lost coverage in your group health plan after they experienced a qualifying event. Qualifying events include:

• An employee鈥檚 employment is terminated for any reason other than gross misconduct.
• An employee experiences a reduction in hours.

Additionally, spouses or dependent children need to be offered COBRA if one of the above or following events impacts their coverage:

• The covered employee becomes entitled to Medicare.
• Divorce or legal separation from the covered employee.
• Death of the covered employee.
• Loss of dependent child status (under the plan rules).
• Your business or organization declaring bankruptcy.

When does COBRA need to be offered?

You have 30 days to notify your plan administrator that a qualifying event has occurred. Within 14 days of notification, your plan administrator must mail a Specific Rights Notice (SRN) to the individual who is now eligible for COBRA. From there, it鈥檚 in the hands of the qualified beneficiary to decide whether or not to elect COBRA.

What does COBRA cost, and who pays for it?

COBRA health insurance premiums can鈥檛 cost more than the cost of coverage through the group health plan, plus a 2% administration charge. Employees typically pay the entire cost of COBRA coverage, but an employer can opt to pay for a portion of coverage under certain circumstances. You can also save you and your employees money by offering coverage through a COBRA alternative marketplace.

How long can a qualified beneficiary be covered by COBRA?

You鈥檙e required to provide COBRA coverage for 18 or 36 months, with the length of time determined by the type of qualifying event that occurred. For example, when the qualifying event is an employee鈥檚 termination or reduction in hours, you鈥檙e only required to offer continuation coverage for 18 months. Most other qualifying events require 36 months of coverage to be offered, but .

Stay up to date on the latest with COBRA by subscribing to our blog!

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

糖心Vlogreceives compensation from some of the merchants identified in its blog posts. By linking to these products, 糖心Vlogis not endorsing these products. 

The post Get to know COBRA regulations and how they impact you appeared first on 糖心Vlog..

1. Make sure your W-2 form shows HSA payroll contributions

Provided by your employer, your  shows the wages you earned and any taxes withheld. It also shows pre-tax contributions made to your account by you and your employer through payroll deductions. (Remember, only contributions made through payroll 鈥� if you made any contributions outside of your payroll deductions, sometimes referred to as ad hoc contributions, they won鈥檛 be reflected and will need to be included when filing your taxes.)

2. Make sure you have access to your HSA tax forms

A  is the HSA tax form that reports distributions from your account. You’ll need this form when filing your taxes.

On the other hand, a聽 reports contributions. It鈥檚 a little different from your W-2 because it鈥檒l show any contributions 鈥� not just those made through payroll deductions. HSA administrators have until June 1, 2026 to issue Form 5498-SA to HSA participants. This form is not a requirement when filing taxes.

The recipient instructions provided with each of these forms walk you through which boxes reflect which information, as well as basic instructions on how to use the forms.

WEX’s HSA participants can find the tax forms related to their HSA .

3. Prepare to report distributions and contributions using tax Form 8889

is used to report your health savings account. Think of this form as the place where the numbers from forms 1099-SA and 5498-SA or W-2 come together. Any distribution amounts reflected on your Form 1099-SA need to be reported on this form, where you鈥檒l also indicate which distributions were eligible for medical expenses. And any contributions made to your HSA should also be listed on this form 鈥� you鈥檒l then carry that information over as deduction information on your (or the main tax form you fill out and file for your tax return). how to complete Form 8889.

4. Make any additional contributions

Looking to make additional contributions to your HSA? The good news is that if you haven鈥檛 filed for the tax year yet and haven鈥檛 maxed out your annual contribution, you can still make additional contributions to your HSA to count toward the prior year. Normally, it鈥檚 recommended to do it by early April to be sure there鈥檚 enough time for any changes to process in your account and allow you to still complete and meet the tax return deadline.

If you’re a 糖心Vlogparticipant and make a contribution between January 1, 2026 and April 15, 2026 that you want to be allocated to the 2025 tax year, just be sure to notify us through your online account or with the HSA Contribution Form that the contribution was for 2025.

Please note: In a couple states, HSA funds are taxed.

Subscribe to our blog for the latest insights on employee benefits. Simply hit the 鈥淪ubscribe鈥� button above or submit your email address in the form below.

This blog post was most recently updated in March 2026.聽

The post Your HSA and your tax return: 4 tips for filing appeared first on 糖心Vlog..

It鈥檚 a smart way to save money on expenses or for a dependent. Watch the full podcast episode below or keep reading to learn more about these plans.

Dependent care FSA eligible expenses

Funds can be used to pay for childcare when they鈥檙e claimed as qualifying dependents. But the savings potential isn鈥檛 limited to just childcare. They can also cover care for a disabled spouse or dependent of any age.

To be eligible for dependent care FSAs when offered through your employer, you and your spouse (if applicable) must be employed, or your spouse must be a full-time student or looking for work.

Big savings potential

Let鈥檚 say you enrolled and contributed $5,000 per year into a dependent care FSA in 2025. You also pay the average American tax rate of 24.8 percent. By putting that money aside pre-tax in a dependent care FSA rather than allowing the funds to be taxed, you save over $1,200 this year!

For married couples who file taxes separately, the 2026 limit is $3,750 per person per year.

Note: Employers may offer these limits, but are not required to. 

Below is a look at the average participant contribution to a dependent care FSA. For more benefit trends, click below!

Below is a look at the average participant contribution to a dependent care FSA. For more benefit trends, click below!

Fast and simple reimbursement

If you participate in a dependent care FSA by WEX, you have two easy options for collecting reimbursement with this type of FSA:

• Mobile or online reimbursement. You can easily upload documentation to a claim by logging into our mobile app, taking a photo of your documentation with your phone鈥檚 camera and uploading it. You can also use your app or online account to upload your Reimbursement Request Form. No additional documentation is required if the dependent care provider signs the form. Once enrolled, you can find the form in your online account or by searching .
• Our Recurring Dependent Care program. If you鈥檙e paying for daycare expenses with your account and enroll in this program, you only need to submit one reimbursement form per year for each daycare provider used.

Weighing the tax credit versus a dependent care FSA

The IRS offers a tax credit to those who have childcare or dependent care expenses. You can鈥檛 enroll in a dependent care FSA and apply for the tax credit with the same funds. The tax credit is for two or more children.

It鈥檚 possible to apply the tax credit to the difference of what you put into dependent care and the tax credit. For example, if you鈥檙e putting $5,000 into the account, that would leave $1,000 that you can apply the tax credit to before you鈥檝e reached the $6,000 ceiling for the credit.

Other dependent care FSA questions

Do dependent care FSAs roll over?

No, dependent care FSA funds do not carry over to the next plan year. 

What is the dependent care FSA limit?

The dependent care FSA contribution limit for 2026 has increased from $5,000 to $7,500 for individuals or married couples filing jointly ($3,750 for a married person filing separately).聽

How can I calculate how much I will save?

Use our FSA calculator to see how FSAs can help you pay less taxes and increase your take-home pay. 

What specific benefits can I get from a dependent care FSA?

You can use a dependent care FSA to pay for preschool, summer day camp, before or after school programs, and child or adult daycare.

Check out our graphic below to learn more about dependent care FSAs!

This blog post was most recently updated in March 2026.聽

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

The post What is a dependent care FSA? appeared first on 糖心Vlog..

Download our app

A variety of day-to-day expenses are eligible for your HSA and FSA funds, including over-the-counter expenses. Having your employee benefits anytime you need them isn鈥檛 just comforting. It鈥檚 an expectation. If you participate in an HSA, FSA, HRA, LSA, or commuter benefits with us, download the benefits mobile app to check your balance, file claims, upload documentation, and even use the scanner to check products for eligible expenses.

How do you do this? Go to the or store and search 鈥淏enefits by WEX.鈥� It will be one of the first apps you see after that. 

Sign up for text alerts

Statements. Contributions. Debit card activity. There are a variety of activities related to your account that you want to stay on top of by signing up for text alerts. 

How do you do this? From your online account, click on Message Center and then click Update Notification Preferences. In this menu, you can also add your phone number and email address for your account. 

Update email address

If you completed the previous task of signing up for text alerts, you may have noticed that there are a variety of email notifications also available, including notifications for your HSA account summary or debit card activity. And going paperless is great for the environment! You鈥檒l want to make sure you have the right email address on file when signing up for these. 

How do you do this? From your online account, hover over Accounts and click on Profile Summary.

Add dependents

Your HSA or FSA may cover your dependents鈥� costs if the dependents are . 

• For medical FSAs, expenses for children through age 26 and spouses are permitted.  
• For dependent care FSAs, it’s generally dependent children through age 12 (or spouses or adult dependent children who are physically and mentally incapable of self-care).聽聽
• For HSAs, it’s tax dependents and spouses.

How do you do this? From your online account, hover over Accounts and click on Profile Summary.

Add beneficiaries (for HSA)

An HSA is all yours. Your balance rolls over from year to year, and the account stays with you even if you change jobs. Because an HSA is a 鈥渟avings鈥� account, you鈥檒l want to designate a beneficiary (or beneficiaries), just as you would with a 401(k) or other retirement-planning accounts. 

How do you do this? From your online account, hover over Accounts and click on Profile Summary.

Add a bank account

When you pay out of pocket for HSA or FSA eligible expenses, you want to be reimbursed fast! By adding a bank account to your account, your HSA and/or FSA can reimburse you for out-of-pocket expenses through direct deposit, which is a faster way to be reimbursed.

How do you do this? From your online account, hover over Accounts and click on Banking/Cards.

Check out knowledgebase

If you want to know the answer to something, you can search for it online. Your employee benefits experience should be the same way. We developed our knowledgebase with that in mind, so you can easily find answers to questions you have about HSAs, FSAs, commuter benefits, and more!

How do you do this? Click 鈥淕et Help鈥� within your online account to view our knowledgebase of help articles. Search for what you need, or peruse articles based on topic. 

Review your tasks

The Tasks menu will let you know of any actionable items, such as setting up a bank account for direct deposit (we鈥檒l get to that shortly) and the need to upload documentation for an outstanding FSA claim. 

How do you do this? Right after you log in to your online account or the benefits mobile app, you鈥檒l see a 鈥淭asks鈥� menu. 

Education is critical to get the most out of your employee benefits. Stay updated on the latest trends and insight by subscribing to our blog!

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

The post Start your new benefits plan year off right with these 8 tips appeared first on 糖心Vlog..

You have options

HSA transfer

If your new employer offers an HSA, you can transfer the administration of your account to your new employer鈥檚 HSA administrator. If you select this option, your new employer will provide you with a transfer request form that authorizes a new HSA custodian to take over the administration of your account. There are no IRS fees or penalties for this option.

“With a true HSA transfer, the key there is it’s a requester initiating to have the funds transferred directly from one HSA custodian to another, so those funds will never touch your hands,” says Amy Donlin, senior solution analyst, benefits, WEX.

HSA rollover

You can also take a rollover approach, which is a process by which you receive a check for your HSA funds. You have 60 days after receiving these funds to move them into another HSA. But watch out: If you exceed the 60-day window, those funds will be considered a distribution and taxed 鈥� and you鈥檒l be assessed .

“This option is limited to only one time during the calendar year,” said Kyle Schulte, senior solution analyst, benefits, WEX. “It’s important to make sure when you’re consolidating these accounts that you understand what method is being used.”

Keep the HSA open

There are no IRS fees or penalties for doing so. If you do keep your current HSA, you can withdraw funds for eligible expenses at any time. However, you can only contribute to your HSA if you鈥檙e still enrolled in a high-deductible health plan. You can also invest some or all of the funds!

(Wondering how much you should contribute to your account in the first place? We鈥檝e got you covered.)

Your HSA is your account

The bottom line is that your HSA is yours. This account doesn鈥檛 belong to your employer, so you get to take it with you wherever you go, even if your new employer doesn鈥檛 offer HSAs or provide HSA contributions. 

Still have questions?

Watch our episode of Benefits, as we cover your options when you have multiple HSAs!

This blog post was most recently updated in December 2024.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

糖心Vlogreceives compensation from some of the merchants identified in its blog posts. By linking to these products, 糖心Vlogis not endorsing these products. 

The post What happens to my HSA when I change jobs? appeared first on 糖心Vlog..

How well do your employees understand their FSA’s plan rules? If they don鈥檛, they could risk forfeiting funds to the plan. And any forfeiture of funds would create a negative experience for them that may discourage future FSA participation, hurting their ability 鈥� and your ability 鈥� to save money. Fortunately, you can help. 

Add a carryover or grace period

You can give your employees even more flexibility to spend their FSA dollars by adding a carryover or a grace period in future plan years. 

• What is a carryover? A carryover lets your employees carry FSA funds $680 from their 2025 FSA) indexed annually per IRS rules) from one plan year to the next. You determine the amount of the carryover, up to the max IRS amount allowed.
• What is a grace period? A grace period gives your employees additional time (up to 2 陆 months) past the plan end date to incur expenses. You determine the length of the grace period up to the max time frame allowed by the IRS.聽

Offering a carryover or grace period will help FSA participants avoid of what’s actually covered by their FSA when spending down their funds.

Please note: IRS rules don鈥檛 allow you to offer both a carryover and a grace period in the same plan. 

Remind them of your plan rules

More than a year passes between the time your employees choose to participate in a medical FSA and the end of that FSA鈥檚 plan year. Communicating your FSA鈥檚 rules during open enrollment is important, but reminders are important too. Be sure your employees know the answers to questions like: 

• Does my medical FSA have a carryover?
• If there is a carryover, how much is it? See above for the carryover limits.
• Does my medical FSA have a grace period?听

Provide info on eligible expenses

Your employees may have determined their FSA participation amount based on expected expenses. But, it鈥檚 possible that they over-estimated and didn鈥檛 incur the eligible expenses that they were anticipating prior to the plan year. 

Fortunately, there are some pretty common household expenses that are eligible for FSA funds, such as pill boxes, nasal sprays, and eye drops. And the CARES Act, which was signed into law in 2020, made popular over-the-counter drugs and medicines eligible for FSA funds without a prescription.聽

You can remind your employees that they can determine whether an expense is eligible for their FSA dollars by using their mobile app. The eligible expense scanner lets them scan the bar code of an item to see if it鈥檚 FSA eligible. 

Your employees can also shop confidently for FSA-eligible purchases at merchants that sell only FSA-eligible products. For example, lets them shop among hundreds of eligible expenses. And their purchases are shipped right to their door. Encourage them to check out FSA Store if they have excess FSA funds. 

Share steps on filing a claim

On the other hand, your employees might not be looking for additional expenses to purchase. They may simply need a reminder on how to file a claim so that they can be reimbursed with their FSA funds. Administering your own FSA can be time-consuming, so many employers turn to third-party administrators (TPAs). If you work with a TPA, your TPA should have systems and processes in place to make claim filing easy.

We鈥檝e proven to be industry leaders in simplifying the claim process. Our 糖心Vlogbenefits card automatically approves any FSA purchases of eligible expenses when used at merchants with . When your employees do need to substantiate a claim, it鈥檚 easy for them to upload documentation and check the status of a claim with their mobile app or online account.

Subscribe to our blog so you’ll get benefits tips sent right to your email inbox! Simply submit your email address in the form towards the bottom of the page. And watch our video below to learn more about the basics of a medical FSA. 

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

糖心Vlogreceives compensation from some of the merchants identified in its blog posts. By linking to these products, 糖心Vlogis not endorsing these products. 

The post 5 tips to help employees with FSA spend down appeared first on 糖心Vlog..

Check out our other first-timer series blog posts on health plans and employee benefits.

What are some examples of voluntary benefits? 

Voluntary benefits include a variety of options, all designed to enhance your overall well-being and provide financial security. Here are some prime examples: 

• Supplemental life insurance: This benefit allows you to bolster your life insurance coverage, ensuring your loved ones are well taken care of in case of the unexpected. 
• Critical illness insurance: In the unfortunate event of a major illness, this insurance can provide a lump-sum payment to help cover medical expenses, mortgage payments, or other financial obligations. 
• Pet insurance: For the pet lovers among us, this benefit helps offset the cost of unexpected veterinary bills, ensuring your pets receive the best care.
• Student loan repayment assistance: Many employers now offer programs to help alleviate the burden of student loan debt, allowing you to focus on your financial future.
• Additional dental/vision insurance: These benefits often cover services not included in your regular dental and vision plans, such as orthodontics or laser eye surgery.聽

These are just a few examples, and the world of voluntary benefits is continually changing to meet the needs and preferences of today’s workforce.

What are some of the perks of these benefits?

Voluntary benefits aren’t just about checking boxes on a benefits enrollment form. They can genuinely improve your quality of life. Here are some perks to consider:

• Financial security: Supplemental life insurance and critical illness insurance offer peace of mind, ensuring that you and your family are financially protected in times of crisis. 
• Pet care peace of mind: Pet insurance means you never have to choose between your pet’s health and your wallet. It’s a lifeline for pet owners. 
• Enhanced health: Additional dental and vision insurance can cover essential procedures that might otherwise be out of reach.

What factors should you consider in making decisions about voluntary benefits?

Choosing the right voluntary benefits requires careful consideration. Here are some factors to weigh:

• Personal needs: Consider your life stage, financial situation, and individual needs. Are you a recent graduate with student loans, a new parent, or someone looking to enhance their healthcare coverage?
• Budget: Evaluate your budget to determine how much you can comfortably allocate to voluntary benefits. Keep in mind that these benefits often come with monthly premiums.
• Existing coverage: Review your current benefit package from your employer to avoid duplicating coverage. Voluntary benefits should complement your existing benefits, not duplicate them. To learn all the ins and outs of your health plans, check out our first blog post in the first-time participant series, covering all things health plans.聽
• Employer contributions: Take advantage of the benefits your employer offers. Many companies subsidize the cost of voluntary benefits, making them more affordable.

What are some common misconceptions?

As with any complex topic, voluntary benefits have their fair share of misconceptions. Let’s dispel a few:

• Voluntary benefits are too expensive: While some voluntary benefits do come with a price tag, they are often more affordable than purchasing similar coverage independently. 
• One size fits all: Voluntary benefits are highly customizable. You can tailor them to your specific needs, so you’re not paying for coverage you don’t need. 
• They’re only for certain life stages: Voluntary benefits are versatile and can benefit individuals at any stage of life. Whether you’re just starting your career or planning for retirement, there are options for you. 
• They’re too complex: Understanding voluntary benefits can seem daunting, but your HR department and benefits providers are there to help. 糖心Vlogoffers BeneFITwise, which provides participants with immediate and relevant access to personalized medical and voluntary benefit plan recommendations. Don’t hesitate to ask questions and seek guidance. You can also keep up to date on everything employee benefits by subscribing to our Benefits podcasts and blogs. 

Can I enroll in voluntary benefits outside of my employer鈥檚 open enrollment period?

In most cases, you can only enroll or make changes to your voluntary benefits during your employer’s designated open enrollment period, which usually occurs once a year. However, certain life events may qualify you for a special enrollment period.

What happens to my voluntary benefits if I change jobs or leave my current employer?

Voluntary benefits are typically tied to your current employer. If you change jobs or leave your company, you may lose access to these benefits. However, some voluntary benefits providers offer portable policies that allow you to continue coverage even if you change employers, though you may need to assume the full cost.

Can I change my voluntary benefits selections during the year, or am I locked into my choices?

Generally, voluntary benefits are selected during your employer’s annual . However, there are some exceptions. Life events such as marriage, the birth of a child, or a change in employment status can trigger a special enrollment period during which you can make changes to your benefits.

Subscribe to our blog to stay up to date on the latest trends and insights with your employee benefits!

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

糖心Vlogreceives compensation from some of the merchants identified in its blog posts. By linking to these products, 糖心Vlogis not endorsing these products or the content of the merchants鈥� websites. 糖心Vlogalso can鈥檛 ensure that merchants won鈥檛 change the content on the websites linked in this blog post.

The post Voluntary benefits: A guide for your first-time enrollees appeared first on 糖心Vlog..

What are fertility benefits?

Fertility benefits provide support and financial assistance to individuals or couples seeking fertility treatments or services. These benefits are designed to help people who are facing difficulties conceiving naturally and require medical assistance to achieve pregnancy. 

Fertility assistance and treatments can be costly, with little to no coverage. Most people using fertility services pay without insurance. 

What are some fertility treatment examples?

There is a wide range of potential treatments and services, including:

• Fertility medications
• Diagnostic testing
•  
• Fertility counseling and consultations
• Adoption assistance
• And more

What fertility treatment does an HSA or FSA cover?

Fertility treatments will qualify for HSA and medical FSA funds to the extent that procedures are performed on the participant, spouse, or another individual whose expenses are eligible for tax-free reimbursement. Examples are: 

• Surgery (including an operation to reverse prior surgery preventing someone from having children) 
• Shots
• Treatments 
• GIFT (gamete intrafallopian transfer) 

Expenses paid to or for an in vitro surrogate usually do not qualify, nor do egg donor expenses unless preparatory to a procedure performed on the participant, spouse, or another individual whose expenses are eligible for tax-free reimbursement.

What infertility treatments does an HSA or FSA cover?

Egg donor fees

, when deemed medically necessary by a doctor who has provided the information needed, are covered by a HSA and FSA. 

Eggs and embryos

An FSA and HSA will cover . It will also cover any procedures to implant donor eggs and embryos, also including fertility medication. An FSA will not cover long-term storage. 

Surrogate expenses

Neither a HSA or FSA will cover . 

Are you looking for more ways to support your employees’ fertility needs? Here are a few to-dos for you.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

糖心Vlogreceives compensation from some of the merchants identified in its blog posts. By linking to these products, 糖心Vlogis not endorsing these products or the content of the merchants鈥� websites. 糖心Vlogalso can鈥檛 ensure that merchants won鈥檛 change the content on the websites linked in this blog post.

The post Support your employees鈥� fertility benefit needs with an HSA or FSA appeared first on 糖心Vlog..

We surveyed nearly 60,000 of our participants to learn more about their questions and pain points regarding employee benefits. Their answers revealed valuable insight to help you build out your open enrollment plans. We鈥檒l help you understand the who, what, when, where, and why behind a successful open enrollment.聽

The who

When asked on a scale of 0 to 10 how confident they are in their understanding of their benefits, the mean score was 7.89. One-quarter of participants responded with a 10, while 34% of them chose 7 or less. These scores illustrate that a one-size-fits-all approach won鈥檛 produce the best results. 

Providing blanket open enrollment resources is crucial in simply communicating what鈥檚 being offered. For your employees who would respond to a question like that with a 10, that might be all they need. For those 7 or less, try to create opportunities for deeper questions to be answered. That could include on-site or virtual fair assistance, or opt-in opportunities for more information. 

Watch our podcast episode below to learn more about the value of virtual OE fairs. 

The what

Your employees aren鈥檛 enrolling in benefits; they鈥檙e enrolling in ways to better support themselves and their families. This could include saving money, raising their kids, and preparing for retirement. That鈥檚 what motivates your employees. It鈥檚 important not to lose sight of that when developing content and communicating that you offer a health savings account (HSA), flexible spending account (FSA), or any other benefits. 

Some benefits are better understood than others, which might also factor into your approach. In our survey, participants said the top benefits they would like more education on are HSAs, lifestyle spending accounts (LSAs), and pet insurance. 

The when

When communicating information about benefits with your employees, make it count. In the survey, 44% of participants said they would like tips and resources from 糖心Vlogon a monthly basis. Another 27% said quarterly. The percentages who chose weekly or bi-weekly were much lower. 

These responses from participants show the importance of year-round benefits communication. For open enrollment, to really capture their attention, you may consider increasing the frequency of your communication. If you don鈥檛 overdo communicating during the rest of the benefits plan year, your employees won鈥檛 be tuned out when you increase communication during open enrollment. 

The where

Your work arrangement (in-person versus hybrid versus remote) might influence your approach. Providing any sort of virtual open enrollment experience, even for your employees who come to the office, is a great way to put benefits education at their fingertips. This way, they can turn to the information when it鈥檚 convenient for them. 

One employer told us that virtual open enrollment fairs paid dividends because they could share education with an employee鈥檚 family members (since the employee might not always be the one making benefits decisions for the family). Plus, it allowed for more flexibility, personalization, and feedback.聽

The why

If you鈥檝e gotten this far, you probably already know the 鈥渨hy!鈥� The workforce is still evolving quickly 鈥� even post-Great Resignation, with .

If your employee benefits are having that great of an influence over your recruiting and retention efforts, open enrollment is the best time to make a difference.

Want to learn more about the results of our participant survey? Check out our infographic below. 

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

糖心Vlogreceives compensation from some of the merchants identified in its blog posts. By linking to these products, 糖心Vlogis not endorsing these products. 

The post What data says about the who, what, when, where, and why of open enrollment education appeared first on 糖心Vlog..

Will you retire in Florida, or at a cabin in the woods? The average 65-year-old couple retiring today will need to cover healthcare and medical costs in retirement. And even though Medicare helps pay for the healthcare needs of , most recipients still spend thousands each year on out-of-pocket expenses. To help you prepare, here is a breakdown of three common retirement accounts: an HSA vs. a 401(k) vs. an IRA. 

An HSA is …

A health savings account (HSA) is a tax-advantage account that participants can pay for healthcare expenses, save for the future, and invest to build your savings. HSAs are portable, meaning that you can take it with you if you change employers and into retirement where funds may be used for non-qualified medical expenses. Employers can also contribute to their employees鈥� HSAs.

A 401(k) is …

A 401(k) is a retirement savings plan offered by many employers that provides tax advantages. Both you and your employer can contribute a portion of your wages to an individual account. These elective salary deferrals are excluded from your taxable income, except at retirement. 

An IRA is 鈥�

An IRA is a long-term savings account that can be used to save for the future and qualifies for certain tax advantages. You can also choose to invest in a wide range of financial products, including stocks, bonds, and mutual funds, to further grow your account. An IRA is primarily designed for self-employed individuals who do not have access to other retirement savings options through an employer.

Why investing with your HSA can help

An HSA has comparable 鈥� or better 鈥� perks than a 401(k) or IRA with respect to healthcare costs in retirement. Just like with a 401(k) and IRA, you can contribute to an HSA until Medicare coverage starts. But while you鈥檒l be taxed and penalized if you withdraw funds from your 401(k) or IRA for any reason before age 59.5, you can withdraw funds for qualified health expenses from your HSA at any time, and without penalty. Funds are available now, the HSA transfers from job to job, and there are no minimum distribution requirements. Which means employees can use their HSA to save during their working years, invest their HSA dollars, and start their retirement with a large sum set aside for healthcare expenses.

HSA vs. 401(k) vs. IRA comparison chart

Check out our full comparison chart for more.

What tax advantages does an HSA share with 401(k) or IRA?

An HSA, 401(k), and IRA can all help employees save money when putting aside funds for retirement. All three accounts provide potential tax savings. And all three are also owned by the individual, meaning that the account stays with the employee whether they remain with their employer or not. That gives the employee peace of mind to lean on these accounts as part of their long-term strategy. 

What are the HSA鈥檚 perks versus a 401(k) or IRA?

There are two important distinctions related to healthcare costs when comparing an HSA with a 401(k) and IRA:

1) Contributions and withdrawals

• With an HSA, contributions made through payroll deductions are tax-free. Withdrawals to purchase eligible medical expenses are also tax-free.
• With a 401(k), contributions are tax-free, but withdrawals are taxed as any other type of income. Additionally, if they withdraw funds before they turn 59 陆, the funds are subject to a 10 percent early withdrawal penalty.
• With an IRA, there are tax implications for either contributions or withdrawals (depending on the type of IRA).

2) Surprise healthcare costs

• HSA participants who are using the account for retirement planning can tap into funds at any time should a need arise. They are only subject to withdrawal penalties if the funds are spent on ineligible expenses.
• With a 401(k) or IRA, withdrawals prior to age 59 陆 are generally subject to be included in the accountholder鈥檚 gross income, plus are subject to a 10 percent penalty.

See the potential HSA retirement savings

Let鈥檚 lay out a scenario for someone, who we鈥檒l call Jane Smith. Jane is married with two kids and is preparing for retirement by participating in an HSA, 401(k), and IRA. 

• She and her employer contribute $4,000 apiece into each of these accounts: her family HSA, 401(k), and IRA. 
• She invests her HSA funds. The return-on-investment for each account is 5 percent annually.
• Her combined federal and state tax rate is 25 percent, and her tax rate at the time she distributes funds is 15 percent. 

Watch her funds grow: 

That鈥檚 a 31 percent increase in healthcare purchasing power with an HSA after 20 years when compared to a 401(k) or IRA! So what happened?

• 401(k) and IRA contributions are subject to FICA taxes (which are 7.65 percent), while HSA contributions are not. 
• With a 401(k) or IRA, funds are taxed somewhere, either when they鈥檙e contributed or when they鈥檙e withdrawn. With an HSA, funds are not taxed when contributed or withdrawn, as long as the purchases are for eligible healthcare expenses. 

鈥淗ealthcare and retirement planning have emerged as top priorities for employers to address with their benefits,” said Matt Dallahan, vice president of product portfolio management at WEX. “One of the perks of an HSA is that it can support both of these vital employee needs.鈥�

Would you like to learn more about HSAs and retirement planning? Get your free white paper. 

This blog post was most recently updated in August 2025.聽

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel. 

糖心Vlogreceives compensation from some of the merchants identified in its blog posts. By linking to these products, 糖心Vlogis not endorsing these products.

The post HSA vs. 401k vs. IRA: How do these retirement accounts stack up appeared first on 糖心Vlog..