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New Program to Coordinate and Optimize 401k and HSA Deferrals


FAIRPORT, NY, August 24, 2016 -- There's been much talk about using Health Savings Accounts (HSAs) for long-term savings, and much talk about the benefits of coordinating HSAs and 401ks. But nobody has offered an actual program for doing so – until now.

Perspective Partners, LLC is officially launching NestUp Managed Deferrals®, the first and only program that educates employees, offers them personalized 401k and HSA deferral recommendations, and implements their choices with just two clicks. When appropriate, NestUp also recommends directing HSA deferrals to retirement-oriented investments and lets employees opt for an HSA investment based on their 401k QDIA.

"The significant tax advantages HSAs have over 401ks means they can have a big impact on long-term retirement savings," says David Snyder, CEO of Perspective Partners.

"NestUp® doesn't treat HSAs and 401ks as separate silos. It takes an integrated approach that optimizes employer matching and tax benefits. And, by helping employees save for near-term out of pocket costs, it can lead to greater acceptance of high deductible health plans. It's a win-win for both employers and employees."

Perspective Partners works with employers, recordkeepers, retirement plan advisors, benefit brokers and such ecosystem partners as HSA administrators, benefit technology companies, payroll companies, and insurance exchanges. Importantly, NestUp can be used with any 401k or HSA provider.

NestUp makes it easy for HR and for the employee by handling the movement of funds from the paycheck to the right account, whether it's the 401k, the HSA transactional account, or the HSA retirement account.

Moreover, NestUp can become the system of record for HSA deferrals, giving HR the benefit of providing employees with a time-saving self-service option for making changes.

NestUp recently concluded a two-year pilot program that demonstrated its ability to significantly advance the interests of both employees and employers. According to Snyder, "Year one showed NestUp could move the needle in some important ways. Year two showed it could continue to meaningfully move the needle."

Deferrals into HSAs were increased both years by employees who received personalized guidance to do so along with a "do-it-for-me" option for easy execution. In year one, 47% of those employees made an increase. In year two, it was 68%. Deferrals into 401ks were also increased both years by employees who received personalized guidance to do so. In year one, 60% of those employees made an increase. In year two, it was 14%.

Both years also showed significant increases in the number of employees who directed their HSA deferrals into retirement-oriented investments, indicating heightened recognition of long-term health needs and the potential for greater tax benefits. What's more, when health plan education was added to NestUp in year two, the number of employees electing the plan with the highest deductible more than tripled.

Clearly, NestUp can help accomplish a number of important objectives, including:

  • Increase participation rates and deferral rates in both HSAs and 401ks.
  • Provide employers with near- and long-term reductions in benefits costs.
  • Make it easier for employees to optimize their savings, finance short- and long-term healthcare needs, and prepare financially for retirement.
  • Encourage greater engagement in high deductible health plans.

Says Snyder, "Because our platform pulls together education, highly personalized guidance and easy execution, NestUp is a better mousetrap that can generate far more added value and differentiation. We're eager to work with strategically minded advisors and ecosystem partners to bring the industry to a new level."

For further details, an informative whitepaper is available titled How Integrated Benefits Optimization Can Benefit Employers & Employees. To receive a copy or for more information, visit ManagedDeferrals.com, or contact Laura Benotti at laura@perspectivepartners.com.

NestUp Managed Deferrals© is a service of Perspective Partners, LLC, a wholly owned subsidiary of Manning & Napier Group, LLC.


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