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Workplace Plans

Save Tax-Free for Future Medical Expenses With a 401(h) Retiree Health Account

MissionSquare’s 401(h) plans help employees prepare for health care costs in retirement with tax-free savings and reimbursements.
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What Is a 401(h) Retiree Health Account?

A 401(h) Retiree Health Account is a tax-advantaged savings vehicle designed to help employees cover medical expenses in retirement. Contribution types may include employer or mandated from employee compensation, and distributions—including earnings—are tax-free when used for qualified medical expenses. These accounts are only available to eligible employees participating in a qualified plan such as a 401(a) Money Purchase Plan.

Benefits of a 401(h) Plan

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Investment Flexibility

At enrollment, a target-date fund based on your age or another default investment option is selected for you. You have the flexibility to make changes to your investments at any time.
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Tax-Free Contributions & Distributions

Contributions may reduce taxable income, and distributions for eligible medical expenses—including earnings—are tax-free, helping you maximize your retirement health care savings.
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Family Benefits

Upon your death, remaining funds may be used by your surviving spouse or eligible dependents for qualified medical expenses, extending the value of your savings.

How a 401(h) Account Works

Once your employer adopts a 401(h) plan, participation is mandatory for eligible employees. Contributions are defined by your employer and may include types like fixed contributions to all employees. You control how your funds are invested and can request reimbursements for qualified medical expenses once eligible.

Frequently Asked Questions

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Who is eligible for a 401(h) account?

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Employees must be in the employer's sponsored qualified plan such as a 401(a) Money Purchase Plan to be eligible to have a 401(h) Retiree Health Account and meet employer-defined criteria. Contact MissionSquare or your employer’s benefits office to determine if you’re eligible.
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What expenses qualify for reimbursement?

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Medical expenses must meet IRS guidelines and be outlined in your plan summary.
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When can I access my funds?

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You may become eligible to access funds upon retirement/separation of service, provided you qualify to receive pension benefits or have a permanent disability.

Ready to Maximize Your Health Savings?

Learn how a 401(h) Retiree Health Account can support your retirement goals. Contact MissionSquare or your employer’s benefits office to determine if you are eligible.

Call (800) 669-7400 to speak with a MissionSquare representative weekdays 8:30 a.m. to 9:00 p.m. ET.

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Retirement Health Savings Program

An RHS account offers tax-free savings for retiree health care expenses. Sponsored by employers and administered by MissionSquare, they complement your retirement strategy.
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Understanding Retirement Taxes

Most distributions from your MissionSquare retirement accounts are subject to federal and possibly state and local income taxes. Planning for these expenses is essential to managing your investments.
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Estimate the Numbers

Use our suite of calculators to estimate retirement savings, health costs, RMDs, and more. Plan smarter with tools designed for your needs.
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