Better together: 401(k) + HSA

Supporting employees’ financial wellness begins with a better strategy of saving into not only one, but two tax-advantaged accounts. During this year’s open enrollment season, consider promoting awareness of how both HSA and 401(k) accounts work together to help drive greater engagement in each.

When participants contribute to both a 401(k) and an HSA, they tend to contribute more to their 401(k) than those who contribute to a 401(k) alone.1



Average 401(k) contribution rate for participants who contribute to a 401(k) and an additional 2.9% to their HSA.1

Average 401(k) contribution rate for participants who contribute only to a 401(k).1

Video: Watch to learn more on how an HSA and 401(k) can work better together

Key takeaways

Use this time as an opportunity to remind employees to check up on their 401(k) and their overall retirement goals. They might consider increasing their contribution, rebalancing assets or updating beneficiaries.

Encourage employees to optimize their HSA and invest a portion of their balance for longer-term growth opportunities.

Combine 401(k) and HSA education strategies to drive greater engagement and results for both benefits.

1 The National Association of Plan Advisors, “How Does HSA Saving Affect 401(k),” March 2, 2018.