Find out what a health savings account can do for you?

1. Find out what a health savings account can do for you?

2. What is a health savings account? • A health savings account or HSA is an individually-owned account used to save and pay for eligible medical expenses. • When you contribute to your HSA through an employer-sponsored Section 125 Cafeteria Plan, your employer takes your HSA contributions out of each paycheck on a pre-tax basis, which decreases your taxable income. • You’ll also earn interest on HSA funds tax-free. • The best part – medical spending is tax free when HSA funds are used for eligible medical expenses!

3. Eligible medical expenses* Use your HSA to pay for a wide range of eligible medical expenses (as defined by the IRS) for yourself, your spouse or tax dependents. Here are just some examples: • Doctor and hospital visits • Medical equipment • Dental care, braces, dentures • Vision care, glasses, contacts • Prescription medications • (and, over-the-counter medication when prescribed) • Premiums for long-term care insurance • Premiums for COBRA • Premiums for coverage while receiving unemployment compensation • Premiums for individuals over age 65 *A list of Eligible 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 (when prescribed by a doctor) are considered Eligible Medical Expenses for HSA purposes.

4. An HSA works with your high deductible health plan • The high deductible health plan or HDHP covers illness or injury after your annual deductible is met, and certain preventive care services at no cost. • Funds in your HSA can pay for eligible medical expenses before AND after your annual insurance deductible is met, including some medical expenses that may not be covered by your insurance plan.

5. The HDHP/HSA concept HDHP Intended to cover serious illness or injury HSA Can pay for eligible medical expenses not covered the health plan

6. Saving for healthcare • An HSA builds over time as any other savings account would - through deposits. • Contributions can be made up to the IRS annual maximum limit of $3,250 for individuals or $6,450 for family coverage in 2013. • Like a traditional savings account, your HSA funds are FDIC insured.

7. Easy ways to contribute to your HSA • You can link an external checking or savings account to your HSA to make a one-time transfer or set-up recurring contributions. • If you prefer, mail a personal check or money order. • Or, transfer funds from an IRA*, MSA or HSA. • Other people can contribute to your HSA – like a spouse, family member or employer. • If you’re 55 or older, you’re allowed a catch-up contribution – an extra $1,000 in 2013. *IRA transfers can only be done once-per-lifetime. Before initiating a transfer or rollover of any kind, please consult a qualified tax advisor to understand any conditions or risks that may apply.

8. Paying for medical expenses with an HSA • HSA funds can help cover some of your medical expenses before your insurance coverage begins. • Medical expenses can be paid through an HSA Visa® debit card and by writing an HSA check. • You can also pay out-of-pocket for eligible medical expenses and then reimburse yourself from your HSA – tax free.

9. Flexibility • If you don’t use all the money in your HSA by the end of the year, don’t worry. It rolls over from year to year and earns interest tax-free. • And if you don’t use your HSA funds for medical expenses, save it as a nest egg for retirement. After age 65, HSA funds can be used for non-qualified expenses and only income tax is assessed. • You also have the option to invest your HSA funds to help grow your savings for healthcare or retirement. Earnings from investments are tax free as well.* *Not FDIC insured

10. Invest your HSA funds • TD Ameritrade gives you access to bonds, stocks and thousands of mutual funds. Trading fees may apply. • DEVENIR is a pre-selected group of no-load mutual funds covering a range of fund families and asset classes. An annual fee of $24 is deducted from the investment account balance, prorata. • Invest with no minimum HSA balance required to begin investing. No proprietary or default investment based on balance. And, you can start right away! 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.

11. HSA advantages • Gives you the flexibility to shop around for healthcare services and products. So, you can make more informed healthcare decisions. • You own the account. HSA funds stay with you when you change jobs or retire. • Plus, you have the opportunity to invest HSA funds and grow your savings • If you don’t use HSA funds for eligible medical expenses, it’s one more way to save for retirement.

12. Get started • Maximize savings for your healthcare and your future with an HSA. • There’s no initial deposit or minimum balanced required. • Contact your Employer or HSA Bank to get started: • (800) 357-6246, M-F, 7 a.m. to 9 p.m. CT • For a Spanish-speaking representative call (866) 357-6232, M-F, 7 a.m. to 9 p.m. CT • askus@hsabank.com