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•  Distributions are tax-free if properly used for qualified
           •  Direct employer relationships accounted for 32           medical expenses.
               percent of new accounts.
                                                                   •  Individuals who save on medical expenses may have
           •  The remaining drivers are insurance agent referrals (10   more money in their budget to focus on other savings
               percent), administrator/TPA referrals (9 percent), and   needs.
               individuals (5 percent).
                                                                 Educating employers and individuals about the tax
         While HSA assets are withdrawn every year to cover medical   benefits of an HSA will not only encourage HDHP/HSA
         costs, the amount that is retained in HSAs continues to grow   participation, but can free up funds for IRA and retirement
         every year. When looking at contribution and withdrawal   plan contributions. n
         activity, Devenir estimates that 22 percent ($5.7 billion) of
         HSAs assets were retained at year-end 2016.
         HSA Solution                                                             Christle Johnson
                                                                                  Senior Editor
         More Americans are moving to HDHPs – by choice or                        Ascensus
         as driven by their employers – and the number of HSAs          
         continues to rise. Employers and individuals should                      Christle Johnson has worked at Ascensus
         understand the benefits of HSAs.                                         since 2001 as a consultant and an
                                                                                  editor.  Her  work  includes  researching,
           •  Individuals can pay for current medical expenses or                 writing, and editing a variety of topics
               save for future expenses with an HSA—there is no use               on IRAs, HSAs, and employer-sponsored
                                                                                  retirement plans. She also is editor of
               it or lose it rule.                                                The Link newsletter and edits IRA, HSA,
                                                                                  and Coverdell ESA compliance manuals
           •  Contributions reduce taxable income.                                and products. She has earned the CIP
                                                                                  designation  and  the  QKA  certification
           •  Earnings on the account build tax free.                             from ASPPA. She also holds a Bachelor
                                                                                  of Arts degree in Mass Communications
                                                                                  and English from the University of
                                                                                  Minnesota, Moorhead, MN.

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