Why employers should offer an adoption savings plan

Between years of paperwork and legal fees, parents who choose to adopt typically have an expensive and taxing journey ahead of them. But as employers expand their benefits into the fertility and child-care space, it seems like they're primed to make a difference for workers who want to adopt.

According to Sismore Law Firm, adoption can cost upwards of $60,000 between legal, agency, travel and medical fees (specifically healthcare for the birthing parent and child). For parents struggling to get pregnant or same-sex couples, adoption may be the only viable path toward growing their family. However, just 25% of companies offer adoption benefits, according to Maven Clinic, while SHRM estimates that only 35% offer paid parental leave for workers who just adopted a child. HSA Bank, which administers different types of employer-provided accounts, hopes its newest savings plan can change that.

HSA Bank's adoption assistance plan is an employer-provided benefit that allows employees to put aside pre-tax dollars from their paycheck in a savings account for expenses related to child adoption. Employers can also make nontaxable contributions to boost their workers' accounts. While this benefit doesn't necessarily solve every challenge that comes with adoption, it can at least help workers create a financial path to parenthood, says Kevin Robertson, chief revenue officer at HSA Bank.

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"I am not only the son of an adopted child, but I'm also a parent of an adopted child — I know from personal experience that adoption is expensive," says Robertson. "I know this plan could be a powerful tool for a person going through adoption."

Robertson describes the adoption assistance plan as an FSA for adoption, stressing that parents can access the full amount at a moment's notice. Given that parents don't always know when they will be successfully matched with a child, it's vital that parents don't have to jump through hoops to access the account. 

As for employers, Robertson stresses that the benefit is ultimately an inexpensive addition to their compensation packages. 

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"This is what I like to call a feel-good benefit," he says. "There won't necessarily be widespread utilization, so it's not likely to be expensive for employers. At the same time, it can impact the perception of the company."

Robertson acknowledges that adoption isn't the most common path to parenthood, but for those who do choose it, it can be incredibly meaningful that the company offers a financial benefit they can opt into. For employers looking to take steps to be more inclusive, adoption benefits, such as financial assistance and leave, can underline a company's support for working parents and the LGBTQ+ community. 

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Robertson notes that whether parents are adopting through foster care, a private U.S. agency or an international agency, there will be financial hurdles. He encourages employers to consider their current offerings and how they address working parents' needs. If adoption isn't on the table, it may be time for employers to ask themselves why.

"Having gone through adoption and realizing how stressful it can be, I know anything employers can do to help is going to be a welcome addition to the people going through it," says Robertson. "Even if no one uses it, that's still a good outcome because employers are still getting the value of perception."