In running a successful business, one way to stay ahead is continuous improvement—it’s the same with your company’s benefits plan. Your plan can be a valuable asset in helping you attract and retain the best employees—giving you a competitive edge that keeps your company on a strong growth track.
When it comes to getting the most from your retirement plan, Bank of America's Advisor Alliance1 offers a powerful solution. Advisor Alliance combines Merrill Lynch Wealth Management’s investment and advisory services with a network of diverse, committed third-party providers who offer competitive recordkeeping and plan administration services for your business retirement plan needs.
Advisor Alliance has become one of the largest and most successful benefit plan programs of its kind, serving more than 23,000 businesses and $58 billion in client balances.1 The value of a Merrill advisor, flexibility, a sound provider network and continuous enhancements make this retirement solution stand out for small-and mid-sized businesses.
Designed with your needs in mind, our health and benefit account solutions can help you offer a competitive benefit plan to your employees.
Health Savings Account
Because Health Savings Accounts (HSAs) play a role in long-term financial wellness, we place a primary focus on education and engagement to help your employees fully understand how their HSA fits within their overall financial picture.
Available to employers of any size, Bank of America's flagship HSA for Life®2 works with High Deductible Health Plans (HDHPs) that typically offer lower monthly premiums than traditional health insurance plans, thereby saving you and your employees money.4 Employees may incur higher out-of-pocket costs with the HDHP, but contributing to an HSA can help them be more prepared to cover the higher expenses. Pairing an HDHP with an HSA could help reduce their overall benefit costs, putting your employees in charge of how they manage their healthcare expenses now, and in, retirement.
The HSA made available by Bank of America, N.A. is a portable healthcare account with the ability to invest3 and potential triple tax advantages4 to help employees keep more of their money:
Flexible Spending Account (FSA)
Our health FSA can be set up as an integrated full- or limited-purpose reimbursement account to enable your employees to set aside pre-tax dollars to help pay for qualified medical expenses that occur during a particular year. When a limited-purpose FSA is combined with an HSA, employees can access funds from both accounts with one Bank of America health and benefit account debit card6. The card's smart technology allows it to automatically pull funds from the correct account based on the expense category.
If you're an employer enrolling fewer than 3,000 employees in an HSA and FSA, you can establish your program with us by contacting us at 800 992 3200 or emailing hsaforlife@bankofamerica.com.
As an employer, you may face the challenge of balancing your business’s needs with your individual retirement planning needs. Figuring out the best way to prepare for a fulfilling retirement requires thoughtful planning and consideration of your needs as an individual and as an employer. You also may have employees whose needs you want to consider. Merrill retirement plans can help you find a solution that is appropriate for your business needs, including:
Save money with tax advantages
401(k) plans are a popular choice among established employers who want to recruit, retain and reward employees. The traditional 401(k) plan has many features and effectively combines employer contributions (25% of eligible compensation (up to $350,000 in 2025)) with employee salary-deferral contributions (up to $23,500 in 2025; $31,000 if age 50 or older).
An individual 401(k) offers owner-only businesses the same benefits as a traditional 401(k) without any complex testing or detailed administrative responsibilities. You may be able to make higher contributions than in other types of retirement plans with the ability to make salary-deferral contributions of up to $23,500. The 2025 deductible contribution amount is 25% of compensation, not to exceed $70,000. Individuals age 50 or older can make an additional $7,500 catch-up contribution in 2025 for a total of $77,500.
A simplified employee pension (SEP) plan is appropriate for both entrepreneurs and business owners with employees. Inexpensive and easy to establish and maintain, a SEP plan allows high employer contributions (25% of compensation or 20% of net earnings from self employment, up to $70,000 for 2025). Annual employer contributions are optional, giving you the ability to determine each year whether to contribute. Employer contributions are 100% vested immediately.
A savings incentive match plan for employees (SIMPLE) may be a good choice for employers with 100 or fewer employees who can afford to make mandatory annual contributions in exchange for no top-heavy or compliance testing requirements. Employees can defer compensation up to $16,500 ($17,500 if they are age 50 or older) for 2025. Employer contributions are 100% vested immediately.
To learn more about how we can help meet the needs of your business, please call 1.877.902.8730.
Find out how our comprehensive benefits solution can help meet the needs of your business.
1 Source: Bank of America. Advisor Alliance is part of Global Wealth and Investment Management (GWIM), the wealth and investment management division of Bank of America Corporation. As of December 31, 2022, Advisor Alliance had client balances of $58 billion. Client balances consists of assets under management, client brokerage assets and deposits.
2 Bank of America, N.A. makes available The HSA for Life® Health Savings Account as a custodian only. The HSA for Life is intended to qualify as a Health Savings Account (HSA) as set forth in Internal Revenue Code section 223. However, the account beneficiary establishing the HSA is solely responsible for ensuring satisfaction of eligibility requirements set forth in IRC sec 223. If an individual/employee establishes a HSA and s/he is not otherwise eligible, s/he will be subject to adverse tax consequences. In addition, an employer making contributions to the HSA of an ineligible individual may also be subject to tax consequences. We recommend that applicants and employers contact qualified tax or legal counsel before establishing a HSA.
3 Mutual Fund investment offerings for the Bank of America HSA are made available by Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a registered broker-dealer, registered investment adviser, Member SIPC, and a wholly owned subsidiary of Bank of America Corporation (“BofA Corp.”). Investments in mutual funds are held in an omnibus account at MLPF&S in the name of Bank of America, N.A., for the benefit of all HSA account owners. Recommendations as to HSA investment menu options are provided to Bank of America, N.A. by the Chief Investment Office (“CIO”), Global Wealth & Investment Management (“GWIM”), a division of BofA Corp. The CIO, which provides investment strategies, due diligence, portfolio construction guidance and wealth management solutions for GWIM clients, is part of the Investment Solutions Group (ISG) of GWIM.
4 HSA Account holders can receive federal income tax-free distributions from their HSA to pay or be reimbursed for qualified medical expenses they incur after they establish an HSA. If they receive distributions for other reasons, the amount withdrawn will be subject to income tax and may be subject to an additional 20% tax, unless an exception applies. Any interest or earnings on the assets in the account are federal income tax-free. Account holders may be able to claim a tax deduction for contributions they, or someone other than their employer, makes to their HSA directly (not through payroll deductions). In addition, HSA contributions may reduce state income taxes in certain states. Certain limits may apply to employees who are considered highly compensated key employees. Bank of America recommends you contact qualified tax or legal counsel before establishing an HSA.
5 “Use it or lose it” refers to account portability and annual rollover of accumulated assets; it does not imply you cannot lose money. The investment portion of the HSA account is not FDIC insured, not bank guaranteed and may lose value.
6 This debit card program is issued by Bank of America, N.A. Visa is a registered trademark of Visa International Service Association, and is used by the issue pursuant to license from Visa U.S.A., Inc.
Neither Bank of America nor any of its affiliates provide legal, tax, accounting or benefits consulting advice. Please consult with your own attorney or tax advisor to understand the tax and legal consequences of your HSA plan or program offering to your employees and your particular situation in your capacity as employer and/or plan administrator. This material should be regarded as general information on healthcare considerations and is not intended to provide specific healthcare advice. If you have questions regarding your particular healthcare situation, please contact your healthcare, legal or tax advisor.
