Industry Voices

Tax-Advantaged Relief and Retirement Savings: HSAs Shape the Way for the Millennial Generation

By PS | July 10, 2017
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Beyond the HSA, other types of accounts can have tax advantages that can really add up if Millennials maximize every benefit opportunity available to them. Realization of such savings is all about understanding the near- and long-term financial benefits of tax-advantaged accounts, and how they stack up and complement each other on an annual basis. ConnectYourCare recently shed light on these scenarios when it conducted a modeled analysis called the Health Care Stack, which illustrates the pre-tax dollars consumers can contribute for both health and lifestyle expenses, ahead of retirement.

The pre-tax savings are vast when notional accounts are factored into the equation. With approved Internal Revenue Service (IRS) limits of a $2,600 per year maximum for FSAs, $5,000 per year maximum for dependent care FSAs, and $6,120 per year maximum for commuter/parking reimbursement plans, this currently equals $38,470 of pre-tax contributions that younger consumers could save by offsetting the tax burden and then invest toward retirement.

The road to retirement, paved with pre-tax savings  

While a one-size-fits-all savings strategy has ceased to exist, it is fundamentally important for Millennials to gain awareness of their options and subsequently understand how the HSA and other pre-tax accounts play an important role in shaping future retirement planning. It’s never too early to plan out a retirement savings strategy. And, as earnings increase over time, so can contribution levels and investments, creating a financial cushion to cover individual and family medical expenses—and to enjoy life comfortably.

Jamie Janvier is the program marketing manager at ConnectYourCare, a provider of consumer-directed health care account solutions. For more information, please visit, email the author at, or follow the company on Twitter @ConnectYourCare.  

NOTE: This feature is to provide general information only, does not constitute legal advice, and cannot be used or substituted for legal or tax advice. Statements by the authors do not necessarily reflect the stance of Strategic Insight or its affiliates.