When employees use ALEX, they make smarter benefits decisions that save themselves and their employers serious money.
And now that the user data is in, we’re thrilled to share exactly how serious those savings were in 2019.
#1. ALEX users told us they’d put $1.04 billion into their HSAs, $478 million into their FSAs, and $752 million into their 401(k)s*. Together, that totals more than $2.2 billion in potential contributions (up dramatically from $1.5 billion in 2018).
#2. The above contributions generated more than $563 million in potential tax savings: more than $446 million in HSA-, FSA-, and 401k-related tax savings for employees, and nearly $116 million in payroll tax savings for employers**.
#3. After talking to ALEX, employees said they would contribute an average of $2476 to their HSAs which is 32% above the national average of $1,872***. They also said they’d contribute an average of 11.2% of their pay to their 401(k)…a whopping 62% above the national average of 6.9%****.
In short, after using ALEX in 2019, hundreds of thousands of employees are now more prepared to take on their medical and retirement expenses. And not only will they see significant tax savings as a result of their benefits choices in 2020, but their employers will too.
*This figure assumes Traditional 401(k) contributions, not Roth 401(k) contributions.
**Employers don’t pay payroll taxes (6.2% for Social Security and 1.45% for Medicare) on any money employees put in their FSAs and HSAs.
***Based on the 2018 Devenir end-of-year report.
*****Based on 2018 Vanguard data (the latest available)