Health & Tax Savings Strategies

Calibrated Benefits Group wants to help you protect your future with the right life insurance plan.

Health and tax savings accounts are powerful tools that help employees reduce out-of-pocket healthcare and dependent care costs while providing employers with a way to enhance their benefits offering. These programs use pre-tax dollars, which lower taxable income and create savings for both employees and employers.

Options for Health & Tax Savings

There are several account types available to support employees’ financial and healthcare needs. Each comes with unique rules and advantages:

Health Savings Account (HSA): Available to employees enrolled in a high-deductible health plan (HDHP). HSAs provide a triple tax advantage—pre-tax contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

Flexible Spending Account (FSA): Employer-sponsored accounts that allow employees to set aside pre-tax dollars for eligible medical expenses. The entire elected amount is available at the start of the plan year.

Limited Purpose FSA: Designed for employees with an HSA, this account covers only dental and vision expenses while preserving HSA eligibility.

Dependent Care FSA: A pre-tax account for childcare or eldercare expenses. Helps working families manage dependent care costs while reducing taxable income.

Health Reimbursement Arrangement (HRA): Employer-funded accounts that reimburse employees for qualified healthcare expenses. Only employers contribute, but they maintain flexibility in plan design.



Defined Contribution Health Plans: Employers provide a set allowance, and employees choose their own coverage (e.g., through a marketplace). This strategy balances cost predictability for employers with choice for employees.

What to Consider When Offering These Benefits

When deciding which savings strategies to implement, employers should carefully review workforce needs and plan structures.

Evaluate Employee Needs: Consider demographics, family status, and the types of expenses employees are most likely to face (healthcare, dependent care, dental/vision).

Review Plan Design: Determine whether employees will benefit most from tax-free savings accounts, employer-funded reimbursement options, or a combination.

Understand Compliance: Each account type has IRS rules, annual contribution limits, and eligibility requirements. Compliance is essential to maximize value.



Balance Cost & Value: Pre-tax benefits can reduce payroll taxes for employers while giving employees more spending power for healthcare and dependent care.

Why Employers Should Care

Attract & Retain Talent: Competitive benefits packages improve recruitment and employee loyalty.

Tax Savings: Employers save on payroll taxes, while employees lower taxable income.



Flexibility: A mix of options allows customization to meet diverse workforce needs.