Helping Your Employees Prepare For Retirement

1
Helping Your Employees Prepare For Retirement
2

• Retirement programs and packages are offered to
  staff by many organisations across the U.S., but
  are they doing enough to help their employees
  prepare for retirement? While it might sound like
  an unnecessary act as bosses have already done
  their part by offering their workers a retirement
  package, it can be of benefit to everyone to help
  them prepare for such things as saving to ensure
  that their daily living requirements can be met
  adequately and making preparations for the
  rising cost of medical expenses.
• Do you know about HSAs?
• If the answer is no, then have a look at the
  following information and familiarise yourself
  with this tax preferred savings vehicle that can
  help your employees.

3

• 401(k)s are more traditional savings vehicles
  popularly opted for by employers, and they give
  savings options for meeting the general financial
  needs of retiring. HSAs on the other hand
  (health savings account) are designed to enable
  the employee to save for any medical costs they
  may incur while retired, but also while they are
  still actively employed.
• HSAs offer many advantages to employees and can
  add a beneficial element to any businesss
  retirement benefits package. In fact, experts say
  that the HSA is the single most valuable tool you
  can provide your employees facing retirement,
  since it provides a mechanism to save money for
  future health costs totally tax-free.

4

• Why not think about offering your employees the
  option of pairing an HSA with a qualified
  deductible health plan, or HDHP? This would be an
  appealing alternative to the usual premium
  coverage and could be considered as an enhanced
  retirement program that may be of interest to
  many of your employees.
• Educating your employees about the tax advantages
  of HSAs
• There are triple tax advantages for those who
  have an HSA, and employers should really be
  helping to educate their staff about this and
  about how to use the plan to ensure that they are
  better prepared for their retirement.
• Here is the HSA triple tax advantage in a little
  more detail

5

• Contributions made to HSAs are pre-tax, and the
  funds grow on a tax-deferred basis withdrawals
  are not taxable if they are used to help fund
  medical expenses that qualify as medical
  expenses. Pre-tax HSA contributions also
  circumvent the Federal Insurance Contributions
  Act or FICA taxes, giving employees and employers
  the opportunity to save money.
• When can an HSA be started?
• They can be started and funded at any time
  throughout the year, not just when there are
  specific enrolment periods, and its important to
  advise your employees of this fact so that if
  they want to, they can start one well in advance
  of their retirement.

6

• Just how important is it to help your employees
  prepare for their retirement?
• The overall wellbeing of your organisation can be
  greatly affected by employee assessments of their
  retirement readiness. Do they have the financial
  capacity to retire and maintain the same standard
  of living that they are currently experiencing?
  While it should be in the interests of all
  employers to help their workers get ready for
  retirement, irrespective of the benefits to their
  company, there are significant benefits that
  include fostering sound workplace planning that
  paves the way for more predictable staff
  transitions.

7

• For more detailed information about helping your
  employees prepare for their retirement, seek
  guidance and counsel from a professional payroll
  solutions company.
• Apollo Payroll is one of the premier small
  business payroll services companies in Miami and
  Coral Gables. Apollo Payroll is dedicated to
  delivering expert advice, responsive service, and
  highly accurate payroll processing and reporting
  to ensure the success and growth of the business
  that we serve. Our services include comprehensive
  payroll services in Homestead and other cities in
  Miami-Dade County, employee background check and
  group health insurance in Miami Coral Gables