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Considering a Health Savings Account (HSA)?

Considering a Health Savings Account (HSA)?. What is a Health Savings Account-HSA?. http :// youtu.be/GTHQ04IAPLI. Let’s Review - HSA Plan Concept #1. Part I: High Deductible Health Plan.

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Considering a Health Savings Account (HSA)?

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  1. Considering a Health Savings Account (HSA)?

  2. What is a Health Savings Account-HSA? http://youtu.be/GTHQ04IAPLI

  3. Let’s Review - HSA Plan Concept #1 Part I: High Deductible Health Plan Covers illness or injury after the deductible, and certain preventive care services at no cost to you. HSA Concept Part II: Health Savings Account Pays for Qualified Medical Expenses not covered by the health plan. • Out-of-pocket includes deductible & co-insurance • Qualifying deductible ranges are limited by the maximum out-of-pocket.

  4. Qualified Medical Expenses A Qualified Medical Expense is incurred to maintain the health of the accountholder or the accountholder’s spouse or dependents. The following are included: • Doctor and hospital visits • Medical equipment • Dental care, braces, dentures • Vision care, glasses, contacts • Medications, (over-the-counter items with a Rx stating medical condition) • Medical related transportation *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.

  5. Other Qualified Medical Expenses • Premiums for long-term care insurance • Limited to amount listed in 213(d)(10)of the Internal Revenue Code • Premiums for COBRA • Premiums for coverage while receiving unemployment compensation • Premiums for individuals over age 65 • Retirement health benefits • Medicare premiums

  6. Let’s Review - HSA Concept #2 HSA Tax-Deferred Growth Earnings Contributions Tax-Deductible/ Pre-Tax Contributions Contributions Tax-Free Distributions (For Qualified Medical Expenses) Normal Tax (NON-qualified expenses if you are 65 or older)

  7. What does an HSA really mean to me? • Control over healthcare dollars • Tax benefits on contributions, earnings and distributions • Contributions are either pre-tax or post tax • (via paycheck) or tax-deductible • Funds roll over from year to year • No “use it or lose it” • Portability • Funds follow you • Tax-free withdrawals for Qualified Medical Expenses even if qualifying coverage ends • Long-term investment opportunities

  8. Individuals who are covered by an HSA-compatible health plan are qualified if they are: 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 • Tri-Care • VA or I.H.S. (if you have used the benefits in the last 3 months) • Full Medical FSA or HRA in the same household

  9. Tax Savings Example For illustrative purposes only. Actual savings may vary. Visit www.hsabank.com and click on Calculate Savings for a personalized estimate.

  10. Online Calculation ToolsIs an HSA Right for Me? Allows you to compare a traditional health plan and an HSA qualified plan to determine potential savings http://hsabank.com/hsabank/Education/HSA_Right_For_Me.aspx

  11. How to Contribute Who Makes Contributions? • Accountholder • Employer • Third Party • Contributions from all sources count toward the annual maximum. How Are They Made? Annual IRS Maximum (regardless of deductible) • Through your employer • Payroll deductions may be an option • Online through Internet Banking • One-time or recurring from an external account. • Checks • Transfers or rollovers • (HSA, IRA) • Individuals and/or their spouses, over the age of 55 and not enrolled in Medicare can make an additional $1,000 catch-up contribution annually.

  12. Distribution Options • Debit card from Visa® • Reimbursement from Internet Banking to an external account • HSA checks • Withdrawal Form • Mail to HSA Bank

  13. Investment Options • HSA Bank offers a unique opportunity to invest HSA funds in self-directed investment accounts. HSA Bank offers: • TD AMERITRADE investment accounts • Mutual Fund Selection investment accounts **Investment products are not FDIC insured, are not a deposit or other obligation of or guaranteed by the bank, and are subject to investment risks including possible loss of principal amount invested.

  14. Service and Support • Toll-free Bankline • 24-hour account access via touch tone phone (800)-565-3512 • Toll-free Client Assistance Center (800) 357-6246 7 a.m. – 9 p.m., CT, Monday – Friday • Toll-free Spanish Language Assistance Line (866) 357-6232 7 a.m. – 9 p.m., CT, Monday – Friday

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