NJ health savings accounts are available only to people with high-deductible health insurance plans (HDHPs). You can save your company a good chunk of money by offering these plans to your employees: HDHPs have lower premiums for you to pay.

If your company has a Section 125 plan, contributions to the accounts can be done pre-tax by your benefit administrator. This makes for a simple and efficient solution when contributing to each employee's health savings account. NJ business owners may believe this is a great plan, but there are a few things to think about before proceeding.

1. Realize that each employee owns the entire balance of his health savings account. New Jersey workers are entitled to all of it if their employment with your company is terminated for any reason.

2. Note the contribution limits. As an employer, you can contribute as much or as little as you want to an employee's NJ health insurance savings account, so long as the maximum is not exceeded between the contributions you and your employee make.

3. Find a good benefit administrator. Health savings accounts in New Jersey are not hard to set up, but you need to make sure they're maintained properly.

Action Steps
The best contacts and resources to help you get it done

Find brokers that offer a New Jersey HSA to businesses

Health insurance brokers are authorized to sell HSAs as well as regular insurance. If you can find a good broker to set you up with both plans, you'll save yourself some time and possibly some money.

I recommend: Get a quote for your business from Sunrise Retirement Solutions and Insurance Planning Services. Submit a request for a quote from Goodliffe Associates, a firm specializing in business solutions.

Consider insurance carriers that offer an HSA account in New Jersey

Many high deductible plans are now bundled with HSAs to give subscribers better control over their health care. Explore the possibilities to see if this is the best route to take.

I recommend: Look over the large selection of plans offered by Horizon Blue Cross Blue Shield of New Jersey. Check out the small business HDHP/HSA plans at Aetna, then fill out an information request for Northern NJ or Southern NJ.

Get the resources you need to start a New Jersey health savings account

Because HSAs are a bit more complicated than regular insurance plans, you'll want to download and print out your application so you can sit down and fill it out correctly. Just fill out the forms and then send them to the carrier you chose.

I recommend: Find NJ enrollment forms for small groups at Savoy Associates. Download a group set-up form from Bank of America.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  The U.S. Department of the Treasury must approve all health insurance savings accounts in New Jersey to ensure that they're qualified as tax-deductible. The HDHP must be approved as well.
• •  Some very large companies may have trouble finding someone to open a business HSA. NJ bankers who are approved as custodians or trustees of Individual Retirement Accounts (IRAs) are automatically approved by the Treasury to service HSAs, so consider talking to local banks if your company has extensive needs.