Considering a Health Savings Account (HSA)?

Basic HSA Plan Concept

Part II: Health Savings Account

HSA Concept

Covers illness or injury after the deductible, and

certain preventive care services at no

cost to you.

Pays for Qualified Medical

Expenses not covered by the

health plan.

2011 Single Family

Min. Deductible $1,200 $2,400

Max. Out of Pocket $5,950 $11,9002012 Single Family

Min. Deductible $1,200 $2,400

Max. Out of Pocket $6,050 $12,100

Part I: High Deductible Health Plan

Max. Contribution Single Family2011 $3,050 $6,150

2012 $3,100 $6,250

Basic HSA Concept

Contributions

Contributions

EarningsTax-Deferred

Growth

Tax-Deductible/ Pre-Tax Contributions

Tax-Free Distributions(For Qualified Medical Expenses)

HSA

Normal Tax(NON-qualified expenses if you are 65 or older)

- Compare to an IRA

Who is Eligible for an HSA?

Not covered by any other non HSA-compatible health plan

Not claimed as a dependent on another person’s tax return (excluding spouses per Internal Revenue Code)

Not enrolled in Medicare

Individuals who are covered by an HSA-compatible health plan are qualified if they are:

Advantages of an HSA

» Funds roll over from year to year» No “use it or lose it” provision

» Tax benefits on contributions, earnings and distributions

» Contributions are either pre-tax (via paycheck) or tax-deductible

» Portability» Funds follow you » Tax-free withdrawals for Qualified Medical Expenses even if

qualifying coverage ends

» Long-term investment opportunities» (Not FDIC insured)

» Control over healthcare dollars

Online Tools

http://hsabank.com/Calculators

Internet Banking

www.hsabank.com/internetbanking

Contributions Options

» How are they made» Online» Check» Rollover (HSA or IRA)» Catch-up

Contribution

» Who makes them» Accountholder» Employer» Third-party

Year Individual Family2011 $3,050 $6,150

2012 $3,100 $6,250

» Maximum Limit

Accountholders covered under an HSA-compatible health plan who are age 55 or older and not enrolled in Medicare are eligible to make an annual catch-up contribution of $1,000

An accountholder’s spouse must have their own HSA, be age 55 or older and not be enrolled in Medicare to be eligible to make the catch-up contribution.

Distribution Options

• Debit card from Visa®

• Reimbursement from HSA Bank through Internet Banking by linking customer’s Personal Bank account to their HSA account and scheduling a bank to bank transfer of funds

• HSA checks• Withdrawal Form

– Mail to HSA Bank

Eligible Medical Expenses

» Doctor and hospital visits» Medical equipment» Dental care, braces,

dentures» Vision care, glasses,

contacts» Prescription medications

You can use your Health Savings Account (HSA) to pay for a wide range of eligiblemedical expenses for yourself, your spouse or tax dependents. Funds used to pay foreligible medical expenses are always tax-free and you can continue to use your HSA

funds even if you’re not covered by an HSA-compatible plan.

*A list of Qualified Medical Expenses can be found in IRS Publication 502, http://www.irs.gov/pub/irs-pdf/p502.pdf. As described in IRS publication 969, http://www.irs.gov/pub/irs-pdf/p969.pdf, over-the- counter medications are considered Qualified Medical Expenses for HSA purposes.

» Premiums for long-term care insurance

» Premiums for COBRA» Premiums for coverage

while receiving unemployment compensation

» Premiums for individuals over age 65

Account & Investments» Savings Account» Interest bearing and FDIC insured

» (Rates subject to change visit www.hsabank.com)» Self-directed Brokerage (Not FDIC Insured)

» Stocks, bonds and thousands of mutual funds» Mutual Fund Platform (Not FDIC Insured)

» Top performing mutual fund suite similar to 401K

Investment products are not FDIC insured, are not a deposit or other obligation of or guaranteed by HSA bank, and are subject to investment risks.

Investment Options

Spanish Resources

• Customer Service (866) 357-6232 7 a.m. – 9 p.m., CT, Monday – Friday

• Forms• Website

Service and Support