Tax Advantaged Benefit Strategy Tax-Advantaged Employee Benefits, Section 125 Cafeteria Plans, Health Savings Accounts, Dependent Care Assistance Programs (HSA), Commuter and Transportation Benefits, Retirement Plan Tax Strategies, Voluntary Benefits with Tax Advantages, Benefits Cost

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04 A HOLISTIC APPROACH

Employers often fail to offer all of the tax-deferred programs available:

02 MISSED OPPORTUNITIES

In today’s competitive labor market, employers are under increasing pressure to deliver more value to employees while managing costs and compliance. Yet, many overlook a powerful lever hiding in plain sight: tax-advantaged benefit strategies.

Unlocking Hidden Value: Leveraging a Tax-AdvantagedBenefit Strategy

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2025

Employers can save up to $1,262 per employee annually by maximizing participation in tax-advantaged benefit accounts.1

Did you know?

Missed Opportunities With Siloed Benefits

Traditionally, health and retirement benefits have been managed in separate silos — leading to missed opportunities for both employers and employees – including:

Failing to maximize participation in pre-tax programs can result in unnecessary payrolltax liability.

Employers pay 7.65% in FICA taxes on wages that could otherwise be sheltered through these programs.

USI’s team is structured to help employers design comprehensive, holistic strategies across all benefit offerings.

01 A SMARTER BENEFIT STRATEGY

Reduce employer tax liability by up to $1,483 per employee annually1

A Comprehensive Approach to Tax Efficiency

USI’s integrated consulting model embeds retirement expertise within our employee benefits team. This alignment enables our tax-advantaged benefit specialists to help employers design and implement comprehensive strategies that:

Improve plan participation and nondiscrimination testing

Educate employees on optimizing their “next best dollar” across tax-advantaged accounts

With an estimated $172,500 of health care costs in retirement,3 an HSA offers powerful advantages:

Triple tax benefit: No taxes going in, no taxes while growing and no taxes coming out for qualified medical expenses

Flexibility after age 65: Use HSA funds for non-medical expenses; withdrawals are taxed as income like a 401(k)

HSA vs. 401(k): The Smarter Way to Save for Health and Retirement 2

HSA’s Superior Spending Power

03 INTEGRATED BENEFITS STRATEGY

05 tHE POWER OF hsa

HSA

401(k)

Assets

Investable

Contributions

Not Taxed

FICA taxed

Earnings

Not Taxed

Not taxed

Distribution for qualified medical expenses

Not Taxed

Taxed (as ordinary income)

Distribution for nonqualified medical expenses

Taxed (as ordinary income after age 65)

Taxed (as ordinary income after age 59-1/2)

Require minimum distribution

Never

Yes (age 72)

Balance at age 60

$300,000

Spending Power

$300,000 (qualified distributions are not taxed)

$234,000 (distributions are taxed)

$66,000 HSA Savings (compared to 401(k))

MAXIMUMparticipation: Up to $1,262 per employee

ENHANCED $500–$600 per employee

AVERAGE participation: $300–$400 per employee

HSA

Pre-Tax 401(k)/403(b)

Roth 401(k)

Additional Tax-Advantaged Accounts

Unlock Triple Tax Advantages and Unmatched Flexibility

A $300,000 HSA balance at age 60 has $66,000 more spending power than a 401(k) of the same size.5

Example

HSA

Contributions are tax-free Funds grow tax-free Withdrawals for qualified medical expenses are tax-free

Build Retirement Readiness While Reducing Tax Liability

Broader participation saves employers hundreds per employee in payroll taxes annually and helps plans pass nondiscrimination testing.

Pre-Tax 401(k)/403(b)

Pre-tax retirement savings help employees lower their taxable income today while building for tomorrow.

Enjoy Tax-Free Income in Retirement

Tax-free growth Tax-free withdrawals in retirement No required minimum distributions No income limits Higher contribution limits

Diversify your tax strategy with both pre-tax and Roth options.

Roth 401(k)

Expand Your Strategy Beyond Retirement

FSA Transit Account Emergency Savings Account 529 Plan Tuition Reimbursement & Education Funds Trump Account (2026+)

A well-rounded strategy improves employee engagement and reduces employer tax liability.

Additional Tax-Advantaged Accounts

Designing a tax-advantaged benefit strategy isn’t about checking boxes – it’s about unlocking the maximum value for your organization and your employees.

Let’s Build Your Strategy Together

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1 Based on 2026 federal maximums, assuming the employee maxes out single HSA, limited purpose FSA, dependent care FSA and transportation accounts. 2 HSA is only available to enrollees in a Qualified High-Deductible Health Plan (QHDHP). This is illustrative of the federal tax treatment of HSA contributions. Some state income tax laws, like California and New Jersey, may treat HSA contributions differently. 3 $172,500 is the estimated cost of health care in retirement for a 65-year-old. Source: Fidelity Investments, 2025 Retiree Health Care Cost Estimate, July 2025. 4 As it relates to the health FSA that references a limited purpose or post-deductible. 5 HealthEquity, HSA Investment Guide, 2025. Tax savings presented here are illustrative only and do not reflect actual savings. Actual savings will be dependent on a number of factors, including member participation, actual contributions, and performance of nondiscrimination testing. This information is provided solely for educational purposes and is not to be construed as investment, legal or tax advice. Prior to acting on this information, we recommend that you seek independent advice specific to your situation from a qualified investment/legal/tax professional. © 2025 USI Insurance Services. All rights reserved.

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Maximize tax-advantages of HSA & 401(k)/403(b) by optimizing engagement

Implement automatic enrollment and escalation Offer at least one HDHP option Consider HSA match Partner with an HSA vendor that makes spending, saving and investing easy for users

Offer additional savings vehicles

Emergency savings account

Offer additional tax-advantaged benefits

General and Limited Purpose FSAs that extend to qualified plan maximums

Round out rewards portfolio with asset protection

Access supplemental insurance

Provide navigation support and tools

Consistently deliver financial education

EMPLOYER STRATEGIES

Strategies ALL EMPLOYERS should consider

Get the FREE money

HSA up to employer match 401(k) up to employer match

Save for the FUTURE

401(k) above employer match Emergency savings account

MINIMIZE tax impact on out-of-pocket costs

Health and dependent care FSA4

PROTECT assets

Supplemental insurance

EMPLOYEE STRATEGIES

Early Career

Establishing Career

Mid-to-Late Career

Nearing Retirement

Strategies ALL EMPLOYEES should consider

06 sTRATEGIES TO CONSIDER

07 Tax-Deferred programs

08 FINANCIAL IMPACT

Maximizing Tax-Deferred Engagement

Example

MaximumParticipation

Up to $1,483per employee1

EnhancedParticipation

$500-$600per employee

AverageParticipation

$300-$400per employee

Quantifying the Financial Impact

Employers who adopt a tax-advantaged strategy can expect to see these estimated tax advantages:

Fully leverage TRIPLE tax-advantaged HSA

Max out HSA for the future OR spend on eligible healthcare expenses

Did You Know?

Employers can save up to $1,483 in federal taxes annually for each employee who fully utilizes their tax-advantaged benefit accounts.1

Early Career

Establishing Career

Mid-to-Late Career

Nearing Retirement

Click on the tiles below to learn more.

Reduce employer tax liability by up to $1,262 per employee annually1

Improve plan participation and nondiscrimination testing

3 / 4

$36K

Premium savings

2 / 4

0.94

Reduced e-mod based on evaluation

1.07

Original workers' compensation e-mod

1 / 4

At USI, we’ve reimagined how employers can integrate their health and retirement benefits strategies to reduce tax liability, boost employee engagement, and enhance financial wellness across the workforce.

USI CLIENT

$66,000 HSA Savings (compared to 401(k))

Thank you for your interest. A USI representative will contact you.