ARTICLE: Health Savings Accounts May Assist in Employee Retention

Research indicates 70% of employees say benefits are either the most important or a very important factor in accepting a job offer or staying in their current job.1 Health Savings Accounts (“HSAs”) are a benefit that employers that maintain high deductible health plans can offer in an effort to provide a well-rounded benefits package.


Here are five ways HSAs can help your employees:


  1. Employees don’t risk forfeiting unused HSA balances at year-end or when retiring or changing jobs

Unlike Flexible Spending Accounts (“FSAs”), HSA balances do not risk forfeiture if they’re not spent; they remain available for use for decades into the future – there’s no deadline to make tax-free withdrawals for qualified expenses, and even in the event of retirement or job change, employees own their HSAs and all of the funds in their accounts.

  1. HSAs can be used for a wide variety of health care costs

HSA owners can increase their contributions at any point in the calendar year based on their own needs. This can be useful if they experience an unbudgeted qualified expense, receive a raise or bonus, or change their long-term financial planning strategy.

  1. HSA distributions can reimburse some insurance premiums

Employees may use HSA balances for a wide variety of eligible medical expenses, including prescription and nonprescription medications, and expenses relating to medical, dental and vision care.

  1. HSA balances can be invested

Typically, HSA administrators or employers set a minimum cash balance that account owners must maintain. Above that threshold, HSA owners can invest their balances in a menu of investment options to match their expected investment time horizon and personal risk tolerance. Invested HSA contributions and any earnings grow tax-free, and when used to pay for eligible medical expenses, HSA withdrawals are tax-free.

  1. HSAs can pull double-duty as a great retirement account

In contrast to distributions from a tax-deferred retirement account, HSA balances aren’t subject to required minimum distribution rules. In addition, medicare premiums can be paid by HSAs and, after age 65, HSA balances can be accessed penalty-free for non-medical expenses. Regular income taxes will apply.


A well-structured HSA program may help support the goals of both employers and employees. For employers, one objective is to attract and retain employees, including through offering well-rounded benefit programs. For employees, one goal may be to right-size their medical coverage by building a tax-advantaged account with which to reimburse current and future qualified medical expenses.

The ABA Retirement Funds Program (“Program”) provides access to the Voya Financial® Health Savings Accounts. Plan sponsors in the Program who offer high deductible health plans (“HDHPs”), can also include a Voya HSA in their benefits offering. Plan participants who elect to enroll in an HSA will be able to view retirement account balances alongside HSA balances after they log into their retirement plan account at This provides a “one-stop” integrated view of retirement and health- savings accounts. Offering tools and education through one source can further make for a more cohesive experience for retirement plan participants.


If you are interested in learning more about the Program and our HSA offering, please email us at [email protected] or visit the Program’s HSA Resource Center.


  1. Torre, Tom. “Employer-Sponsored HSAs Help With Recruitment and Retention.” InsuranceNewsNet, June 1, 2021.


This material is provided for educational purposes only; it is not intended to provide legal, tax, or investment advice. All investments are subject to risk. Please consult an independent tax, legal, or financial professional for specific advice about your individual situation.

HSA offered by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC). Custodial services provided by WEX Inc. WEX, Inc. is not affiliated with the Voya® family of companies.

This highlights some of the benefits of an HSA. If there is a discrepancy between this material and the plan documents, the plan documents will govern. Subject to any applicable agreements, Voya and WEX Health, Inc. reserve the right to amend or modify the services at any time.

The amount saved in taxes will vary depending on the amount set aside in the account, annual earnings, whether or not Social Security taxes are paid, the number of exemptions and deductions claimed, tax bracket and state and local tax regulations. Check with a tax advisor for information on whether your participation will affect tax savings. None of the information provided should be considered tax or legal advice.

Investments are not FDIC Insured, are not guaranteed by Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC), and may lose value. All investing involves risks of fluctuating prices and the uncertainties of return and yield inherent in investing. All security transactions involve substantial risk of loss.

©2022 Voya Benefits Company, LLC (in New York, doing business as Voya BC, LLC). All rights reserved.


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