Every year, Jellyvision’s talented product team works hard to update, revise, and refresh ALEX so it’s even better at helping employees choose the best-fit plans and save money.
In 2017, they outdid themselves. After being overhauled to offer more helpful HSA and 401(k) guidance, ALEX drove more than $119 million in potential employee and employer tax savings. Our customers and their employees were as happy as our product teams’ parents were proud.
Fast-forward to the changes made to ALEX in 2018: a new way of measuring retirement readiness, better estimates for prescription costs, and even more HSA education. The changes weren’t nearly as dramatic as the ones made in 2017, but we’re thrilled to report that the contributions and tax savings ALEX drove this past year were far more dramatic. Like, good dramatic, not evil-twin-sabotages-wedding dramatic.
Specifically, last year:
#1. ALEX users told us they’d put $734 million into their HSAs, $297 million into their FSAs, and $560 million into their 401(k)s*. Together, that totals more than $1.5 billion in potential contributions (up dramatically from $880 million** in 2017).
#2. The above contributions generated more than $391 million in potential tax savings: more than $312 million in HSA-, FSA-, and 401k-related tax savings for employees, and nearly $79 million in payroll tax savings for employers***.
#3. After talking to ALEX, employees said they would contribute an average of $2,620 to their HSAs which is 36% above the national average of $1,921****. They also said they’d contribute an average of 11.2% of their pay to their 401(k)…a whopping 65% above the national average of 6.8%*****.
In short, after using ALEX in 2018, 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 2019, but their employers will too.
(If you’re in the mood for more pleasing ALEX user data, check out how much ALEX saved these same employees on their actual plans last year.
*This figure assumes Traditional 401(k) contributions, not Roth 401(k) contributions.
**This figure captures HSA and 401(k) data only; FSA data wasn’t tracked in 2017.
***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 2017 Devenir end-of-year report.
*****Based on 2017 Vanguard data (the latest available)