More Choices When it Comes to Planning Your Company`s Benefit

Transcription

More Choices When it Comes to Planning Your Company`s Benefit
RETIREMENT & BENEFIT PLAN SERVICES
Health Benefit Solutions
More choices when it comes to planning your company’s benefit accounts program
Consumer Directed Health Care accounts give employees more choice and control over how their health care dollars are spent. With
Bank of America Merrill Lynch as your single, trusted provider of account-based benefits, you’ll enjoy more time to grow your business,
while spending less time on administration.
The HSA for Life®1
Retiree HRA
Health Savings Account
When your HRA-eligible employees are ready to retire, offer
the Retiree HRA. Find flexibility in the plan design, as you
can choose eligible expenses that are right for your retired
population — including insurance premiums, Medicare
supplemental coverage premiums and more. When you provide
funds to retirees that support qualified health care expenses,
your retiree population can use their Retiree HRA account to
help offset growing medical costs. And retirees can roll over
funds from their current HRA to their Retiree HRA, allowing
them to benefit from all of your contributions.
Our HSA is truly portable. It goes with your employees wherever
they go, whether they move, take a new job, or even retire —
and Bank of America Merrill Lynch will continue to service their
account through all their life changes. It’s often referred to as a
“medical 401(k),” because your employee actually owns it for life.
Employees can put money into this account on a pre-tax basis
to save for current and future medical expenses. They get more
control over how their health care dollars are spent, while the
assets in the account have the potential to earn interest, taxfree. But the best part about the HSA is that the funds in their
account roll over from year to year, and are always available to
your employee. That’s good for them and for you, too.
HRA
Health Reimbursement Arrangement
With an HRA you decide the benefit amount you want to
contribute for each employee. As benefits are paid out, they can
be deducted on your business taxes. Your employees can access
these funds to pay for medical expenses not covered under
your health plan. You can also establish an HRA with unfunded
“credits” instead of hard dollars. This is similar to a line of credit
in that funds are deducted only when employee expenses are
paid, allowing you to better manage your company’s cash flow.
And with our integrated claims capability, your employees will
see a significant reduction in paperwork. No more headaches
filing tedious claims forms, waiting for processing and approval.
It’s a win-win situation for both you and your employees.
FSA
Flexible Spending Account
Health FSAs allow employees to set aside pre-tax money on
an annual basis to pay for qualified medical expenses incurred
during that year and can be paired with any type of health
insurance plan. Employees can access the entire amount
designated for the year at any time during the year. And with
our streamlined claims substantiation process, the paperwork
for you and your employees is greatly reduced. This is a great
option for employees who are able to plan ahead for medical
expenses for the year — such as monthly prescriptions, copays
for pediatric visits or laser eye surgery. Employees can also
contribute pre-tax dollars to a Dependent Care FSA to help
pay for childcare and adult care expenses.
Bank of America Merrill Lynch is a marketing name for the Retirement Services business of Bank of America Corporation (BofA). Banking activities may be performed globally by
banking affiliates of BofA, including Bank of America, N.A., Member FDIC. Brokerage services may be performed globally by brokerage affiliates of BofA, including Merrill Lynch, Pierce,
Fenner & Smith Incorporated (MLPF&S). MLPF&S is a registered broker-dealer, Member SIPC and a wholly owned subsidiary of BofA.
Investment products:
Are Not FDIC Insured
Are Not Bank Guaranteed
May Lose Value
HIA
Health Incentive Account
Why choose Bank of America Merrill Lynch
Health Benefit Solutions?
Gaining in popularity, HIAs, which are a form of HRA, that
employers use to incent employees for healthy lifestyle options.
•A trusted financial resource
You can contribute funds to accounts of employees who are
•Easy to do business with us
actively engaging in healthy lifestyle choices — such as smoking
•Smooth transition for you and your participants
cessation or weight management programs. Employees
•Easy account administration through our Online Portal
are allowed to use the employer funds for qualified medical
•Easy account management for your participants
expenses — further promoting employees to take ownership of
•Continual investment in innovation
their health care. The Bank of America platform integrates easily
with most wellness and health care incentive partners, allowing
HIAs to be a good addition to any benefit program.
To find out more, please contact the
National Referral Center at 1.800.992.3200
or [email protected].
•Secure and dedicated platform architecture
•Easy access to funds with our convenient debit card 2
•Cost-effective and complementary to your
existing benefits
•Potential for increased participant satisfaction
•Potential for reduced health care costs
Learn more on our website at:
bankofamerica.com/benefitsolutions
Bank of America, N.A. makes available The HSA for Life® Health Savings Account as a custodian only. The HSA for Life is intended to qualify as a Health Savings Account (HSA)
as set forth in Internal Revenue Code section 223. However, the account beneficiary establishing the HSA is solely responsible for ensuring satisfaction of eligibility requirements
set forth in IRC sec 223. If an individual/employee establishes an HSA and s/he is not otherwise eligible, s/he will be subject to adverse tax consequences. In addition, an employer
making contributions to the HSA of an ineligible individual may also be subject to tax consequences. We recommend that applicants and employers contact qualified tax or legal
counsel before establishing an HSA.
2
This debit card program is issued by Bank of America, N.A. Visa is a registered trademark of Visa International Service Association, and is used by the issuer pursuant to license
from Visa U.S.A. Inc.
1
Bank of America Merrill Lynch Health Benefit Solutions does not provide tax, legal, investment or benefits consulting advice. Please consult with your own attorney, tax advisor
and/or benefits consultant to understand the tax and legal consequences of your employee benefit arrangements and your particular situation in your capacity as employer and
your unique objectives and strategies for communicating your employee benefit arrangements to your employees.
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