Health Savings Account Custodial Agreement and Privacy Policy

Transcription

1 Health Savings Account Custodial Agreement and Privacy Policy

2 Important Notice THIS HEALTH SAVINGS ACCOUNT CUSTODIAL AGREEMENT INCLUDES INFORMATION ABOUT INVESTMENTS IN MUTUAL FUNDS THROUGH THE SWEEP FEATURE OF YOUR HEALTH SAVINGS ACCOUNT. Mutual fund investing involves risks, including the possible loss of principal. Consult a fund s prospectus for additional information on risks. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in a money market fund. Carefully consider a fund s investment objectives, risks, charges and expenses before investing. For a current prospectus, and if available, a summary prospectus, containing this and other information, visit wellsfargo.com/hsa. Read it carefully before investing. In reference to the Wells Fargo Funds available as investment options, please note the following: Wells Fargo Funds Management, LLC, a wholly owned subsidiary of Wells Fargo & Company, provides investment advisory and administrative services for the Wells Fargo Funds. Other affiliates of Wells Fargo & Company provide subadvisory and other services for the Funds. The Funds are distributed by Wells Fargo Funds Distributor, LLC, Member FINRA, an affiliate of Wells Fargo & Company.

3 Table of Contents Introduction... 1 Welcome to Wells Fargo... 1 Words with specific meaning... 1 Resolving disputes through arbitration...3 Important legal information...4 Statements and other HSA-related information...5 Rights and responsibilities...7 HSA eligibility, contributions, and distributions...9 HSA eligibility...9 HSA contributions...9 HSA distributions Account closures and suspension of services Deposits to your HSA...11 Funds Availability Policy...12 Interest-earning HSA Deposit Account...14 Investments and Target Balance requirement...14 Available balance, posting order, and overdrafts...16 Additional rules for checks and withdrawals...18 Issuing stop payment orders and post-dated checks...19 HSA debit card...20 Electronic fund transfers...20 Funds transfer services...22 Bank fees Account ownership, beneficiaries, transfers upon death...24 Customer service Your consent for calls and text messages Privacy Policy Notice...26

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5 Health Savings Account Custodial Agreement Introduction Welcome to Wells Fargo You have many choices when selecting a Health Savings Account ( HSA ) custodian, and we are glad you chose Wells Fargo Bank, N.A. We value our relationship with you. Please review this booklet for further details regarding your HSA and related services. What words do we use to refer to the customer, Wells Fargo, and our agreement with you? The customer is the HSA accountholder, you, your, or yours and, to the extent applicable, the cardholder and the dependent cardholder Wells Fargo Bank, N.A. is Wells Fargo, we, us, or our This HSA Custodial Agreement document and the disclosures listed below constitute the Agreement : - HSA Accountholder Fee Schedule - Wells Fargo U.S. Consumer Privacy Policy ( Privacy Policy ) - Terms of Use for Wells Fargo Health Savings Account Card ( Card Terms of Use ) - Our interest rate information for the HSA Deposit Account, as modified by us from time to time, and - Any additional disclosures we provide to you about your HSA and related services Words with specific meaning Certain words have specific meanings and are italicized throughout this booklet. These words and their meanings are in this section. Affiliate An affiliate is an entity other than Wells Fargo Bank, N.A., that is, directly or indirectly, a wholly or substantially owned subsidiary of Wells Fargo & Company. Authorized signer A person you have authorized to use your HSA even if they have not signed applicable documents. Available balance Your HSA s available balance is our most current record of the amount of money available for your use or withdrawal. Only funds in the HSA Deposit Account are available for use or withdrawal. Any funds in the investment portion of your HSA must be liquidated and transferred to the HSA Deposit Account before such funds are eligible for use or withdrawal. For more information, please see the section entitled How do we determine your account s available balance? in the HSA Custodial Agreement. Business day Every day is a business day except Saturday, Sunday, and federal holidays. Card Card is the Wells Fargo Visa Health Savings Account Debit Card that we may issue to the HSA accountholder, and will include any dependent cards issued at the request of the HSA accountholder. HSA Deposit Account Uninvested funds in your HSA are held in a Federal Deposit Insurance Corporation ( FDIC ) insured interest-bearing deposit account, called the HSA Deposit Account. The HSA Deposit Account is a transactional account. 1

6 Item An item is an order, instruction, or authorization to withdraw or pay funds or money from an account. Examples include a check, draft, and an electronic transaction (including Automated Clearing House (ACH), an ATM withdrawal, and a purchase using a card to access an account). An item also includes a purported order, instruction, or authorization to withdraw or pay funds or money from an account, unless otherwise prohibited by law or regulation. Overdraft An overdraft is a negative balance in your HSA Deposit Account that is created when you do not have enough money in your HSA Deposit Account to cover the amount of an item, and we pay the item instead of declining it or returning it unpaid. What information does the Agreement contain? The Agreement Explains the terms of your HSA relationship with Wells Fargo, Is the entire Agreement between Wells Fargo and you for your HSA and any related services, Replaces all prior HSA agreements including any oral or written representations, and Includes legal information about your banking relationship with Wells Fargo. By accepting this Agreement as part of the enrollment process or using your HSA, you will be considered to have received and agreed to this Agreement. There are no third party beneficiaries under this Agreement. You are responsible for ensuring that any authorized signer on your HSA is familiar with the Agreement. We suggest you retain a copy of the Agreement and any further information we provide you regarding changes to the Agreement for as long as you maintain your Wells Fargo HSA. All tax references are at the federal level. State tax rules may be different. Are we allowed to change the Agreement? Yes, we can change the Agreement by adding new terms or conditions, or by modifying or deleting existing ones. We refer to each addition, modification, or deletion to the Agreement as an amendment. Notice of an amendment: If we are required to notify you of a change to the Agreement, we will provide a notice of the amendment and its effective date by a message within your account statement or any other appropriate means. The notice of the amendment may provide the text of the amendment or it may provide a link to the amendment on one of our webpages. If it provides a link to the amendment, you may obtain a paper copy of the amendment by calling the phone number provided with the notice. Note: We may not be required to notify you of some types of changes for example, a change that benefits you or a change that does not require advance notice under the law (e.g., rate changes). Waiver of a term: We may agree in writing to waive a term of the Agreement, including a fee. This is called a waiver. We may revoke any waiver upon notice to you. How do you consent to an amendment or revocation of a waiver? Any amendment that we make to comply with the law does not require your consent. You will be considered to have consented to any other amendment unless, within the thirty (30) day period after such notice is sent, or within such longer period as the notice may specify, you give us written notice of your refusal to consent to the amendment. You consent to a revocation of a waiver if you continue to use your account after a waiver is revoked. What happens if a term of the Agreement is determined to be invalid? Any term of the Agreement that is inconsistent with the laws governing your HSA will be considered to be modified by us and applied in a manner consistent with such laws. Any term of the Agreement that a court of competent jurisdiction determines to be invalid will be modified accordingly. In either case, the modification will not affect the enforceability or validity of the remaining terms of the Agreement. 2

7 Who will we communicate with about your HSA? We may provide you or an authorized signer with information about your HSA. When we receive information from an authorized signer, we treat it as a communication from you. You agree to notify us promptly in writing if an authorized signer no longer has authority on your HSA. Resolving disputes through arbitration Arbitration Agreement between you and Wells Fargo If you have a concern, we hope to resolve it as quickly and easily as possible. First, discuss your concern with a banker. If your banker is unable to resolve your concern, you agree that either Wells Fargo or you can initiate arbitration as described in this section. Definition: Arbitration means an impartial third party will hear the dispute between Wells Fargo and you and provide a decision. Binding arbitration means the decision of the arbitrator is final and enforceable. A dispute is any unresolved disagreement between Wells Fargo and you. A dispute may also include a disagreement about this Arbitration Agreement s meaning, application, or enforcement. Wells Fargo and you each agrees to waive the right to a jury trial or a trial in front of a judge in a public court. This Arbitration Agreement has only one exception: Either Wells Fargo or you may still take any dispute to small claims court. Arbitration is beneficial because it provides a legally binding decision in a more streamlined, cost-effective manner than a typical court case. But, the benefit of arbitration is diminished if either Wells Fargo or you refuses to submit to arbitration following a lawful demand. Thus, the party that does not agree to submit to arbitration after a lawful demand must pay all of the other party s costs and expenses for compelling arbitration. Can either Wells Fargo or you participate in class or representative actions? No, neither Wells Fargo nor you will be entitled to join or consolidate disputes by or against others as a representative or member of a class, to act in any arbitration in the interests of the general public, or to act as a private attorney general. If any provision related to a class action, class arbitration, private attorney general action, other representative action, joinder, or consolidation is found to be illegal or unenforceable, the entire Arbitration Agreement will be unenforceable. What rules apply to arbitration? Wells Fargo and you each agrees that: The American Arbitration Association (AAA) will administer each arbitration and the selection of arbitrators according to the Commercial Arbitration Rules and the Supplemental Procedures for Consumer Related Disputes (AAA Rules). If there are any differences between the AAA Rules and this Arbitration Agreement, this Arbitration Agreement applies. If this Arbitration Agreement is in dispute, the arbitrator will decide whether it is enforceable. Wells Fargo and you are participating in commercial transactions involving the movement of money or goods among states. The Federal Arbitration Act (Title 9 of the United States Code) governs this Arbitration Agreement and any arbitration between Wells Fargo and you. If the Act or any part of it is inapplicable, unenforceable or invalid, the state laws governing your relationship with Wells Fargo govern this Arbitration Agreement. Either Wells Fargo or you may submit a dispute to binding arbitration at any time, regardless of whether a lawsuit or other proceeding has previously begun. For information on initiating arbitration, contact the AAA at Each arbitrator must be a licensed attorney with expertise in the laws applicable to the dispute s subject matter. The arbitrator will make a decision regarding the dispute based on applicable law, including any statutes of limitations. The arbitrator may award to either Wells Fargo or you any award or relief provided for by law. 3

8 No person participating in an arbitration can disclose the arbitration s existence, content, subject, or results, except as required in a party s ordinary course of business or by law. Who pays the arbitration fees and expenses? Arbitration fees and expenses are explained here: Setting the fees/expenses: The arbitration administrator determines the rules and procedures for deciding who pays the arbitration fees, unless limited by applicable law. Please check with the arbitration administrator to determine the fees applicable to any arbitration you file. Applying state law: The laws governing your account may limit the amount of fees and expenses you are required to pay in arbitration. Your arbitration fees and expenses will not exceed any applicable limits. Paying for attorney/expert/witness fees: Unless applicable laws state otherwise, each party will pay its own attorney, expert, and witness fees. This rule applies no matter which party wins arbitration. What other rights do Wells Fargo or you have when resolving disputes? Wells Fargo or you each can exercise any lawful rights or use other available remedies to: Preserve or obtain possession of property, Exercise self-help remedies, including setoff rights, or Obtain provisional or ancillary remedies such as injunctive relief, attachment, garnishment, or appointment of a receiver by a court of competent jurisdiction. Where will an arbitration be held? An arbitration will be held in the state whose laws govern your account, a location determined by the AAA, or a location mutually agreeable to all parties. Important legal information What laws govern your HSA? The laws governing your HSA include Laws, rules, and regulations of the United States, and Laws of the state of Utah (without regard to conflict of laws principles). What is the controlling language of the Agreement? English is the controlling language of our relationship with you. For your convenience, we may translate some forms, disclosures, and advertisements into another language. If there is a discrepancy between our English-language and translated materials, the English version prevails over the translation. What agreement applies when there is a separate agreement for a service? If a service we offer has a separate agreement, and there is a conflict between the terms of the Agreement and the separate agreement, the separate agreement will apply. Can we provide you with legal or tax advice? No. Wells Fargo cannot provide you with tax or legal advice on any aspect of your HSA. All information provided by us about this HSA is not legal, tax, investment, or other professional advice. If you have questions about these matters, you may wish to consult with an attorney or other qualified tax or investment professional. You are responsible for complying with the tax laws. What courts may be used to resolve a dispute? Wells Fargo and you each agree that any lawsuits, claims, or other proceedings arising from or relating to your HSA or the agreements and disclosures governing your HSA, including the enforcement of the Arbitration Agreement and the entry of judgment on any arbitration award, will be venued exclusively in the state or federal courts in the state whose laws govern your HSA, a location determined by the AAA, or a location mutually agreeable to all parties, without regard to conflict of laws principles. 4

9 Statements and other HSA-related information How do we share HSA statements and other notices with you? We will mail, send electronically, or otherwise make available to you a statement reflecting your HSA activity for each statement period. We ll do the same with notices. We will send all statements and notices to the postal or electronic address associated with your HSA. When is your HSA statement available? Mailed statements: When we mail your HSA statement, we consider it received by you on the second business day after mailing it. Electronic delivery of statements: Statements will be made available through Wells Fargo Online Banking hours after the end of the statement period. You will be notified via that the account statement is available for viewing. We consider the statement to be received by you on the notification date, even if the notification is undelivered. What obligations do you have to review statements and notices and notify us of errors? You are obligated to: Examine your statement promptly and carefully. Notify us promptly of any errors. Notify us within 30 days after we have made your statement available to you of any unauthorized transaction on your HSA. Note: If the same person has made two or more unauthorized transactions and you fail to notify us of the first one within this 30 day period, we will not be responsible for unauthorized transactions made by the same wrongdoer. Notify us within 6 months after we have made your statement available to you if you identify any unauthorized, missing or altered endorsements on your items. Electronic fund transfers are subject to different time periods, as described in the Fund transfer services part of the HSA Custodial Agreement. Common examples of electronic fund transfers are card and Online Bill Pay transactions. When is a transaction unauthorized? A transaction is an unauthorized transaction when it is: Missing a required signature or other evidence showing you have authorized it, or Altered (for example, the amount of a check or the payee s name is changed) You can notify us of errors on your statements and claims by promptly: Calling the telephone number listed on your statement or in a notice, or Submitting a written report (if instructed by us) as soon as possible, but in any event, within the specified time frames. What happens if you fail to notify us of an unauthorized transaction within the time frames specified above? If you fail to notify us of any unauthorized transaction, error, or claim for a credit or refund within the time frames specified above, your statement will be considered correct. We will not be responsible for any unauthorized transaction, error, or claim for transactions included in this statement. What happens when you report an unauthorized transaction? We investigate any reports of unauthorized activity on your HSA. After you submit a claim, we may require you to: Complete the claim form we provide, Notify law enforcement, Complete and return any documents we request, and Cooperate fully with us in our investigation. 5

10 We can reverse any credit made to your HSA resulting from a claim of unauthorized transaction if you do not cooperate fully with us in our investigation or recovery efforts, or we determine the transaction was authorized. For specific information on unauthorized electronic fund transfers, see the Liability for transactions section in the Electronic fund transfers part of the HSA Custodial Agreement. What happens if your HSA statements or notices are returned or are undeliverable? Your statements or notices will be considered unclaimed or undeliverable if: Two or more statements or notices are returned to us through the mail because of an incorrect address; or We notify you electronically that your statement is available for viewing at Wells Fargo Online Banking, and we receive notifications that our message is undeliverable. In either event, we may Discontinue sending statements and notices, and Destroy statements and notices returned to us as undeliverable. We will not make statements and notices available to you until you provide us with a valid postal or electronic address. How can you or Wells Fargo change your address for your HSA statements and other notices? Address change requests you make: You can change your postal or address by notifying us in writing or calling us at the number on your HSA statement at any time. We will act on your request within a reasonable time after we receive it. Unless you instruct otherwise, we may change the postal or electronic address only for the HSA(s) you specify or for all or some of your other account(s) with us. Address changes we make: When necessary, we may update your listed address without a request from you if we receive An address change notice from the U.S. Postal Service, or Information from another party in the business of providing correct address details that does not match your HSA s listed address. When are notices you send to us effective? Any notice from you is effective once we receive it and have a reasonable opportunity to act on it. How will we contact you about your HSA? You agree in order for us to service your HSA or collect any amount you owe, we may contact you by phone, text, , or traditional mail. When we text or you, we are permitted to use any telephone number or address provided to us. You are responsible for any charges from your wireless carrier for text messages we send. You consent to our leaving prerecorded/artificial voice messages and to using an automated technology dialing system to call or text your mobile/cellular telephone number. Are original paid checks returned with statements? We do not return original paid checks with your statements. Copies of your paid checks are available through Wells Fargo Online Banking, or banking locations, by calling HSA Customer Service. Fees may apply for this service. When does your HSA become dormant? Your HSA is dormant if there is no activity in your account for a period specified under appropriate state law. Once an HSA becomes dormant, we may hold all account statements, but normal maintenance and other fees will apply (except where prohibited). Your debit card privileges (including using the card and making purchases) may also be blocked or terminated. What happens if your account is dormant or no one claims your HSA funds upon your death? If we are made aware of your death and have not received notice from your estate s personal representative or other appropriate party within ninety (90) days after becoming aware, we may, without liability, sell assets in the investment portion of your HSA and, subject to applicable limitations, deposit the proceeds of such sale in the HSA Deposit Account until a disbursement is possible to your estate s personal representative or other appropriate party. 6

11 If your HSA becomes dormant or remains unclaimed by your estate s personal representative or other appropriate party for a period specified under appropriate state law, we must deliver your HSA funds to the state. This action is known as escheat. After delivering your funds to the state, we will close your HSA, and it will stop accruing interest. To recover these funds, your estate s personal representative or other appropriate party must file a claim with the state. If we are required to mail an escheat notice, we may charge a fee. What happens if you don t cash a check we send to you? If we issue you a check from your HSA and the check remains uncashed for 6 months from the issue date, we may reissue the check or re-credit your HSA for the amount specified. At that point, the original check will no longer be valid. However, if your HSA is closed in the 6 months after the original check was issued, we are required to deliver ( escheat ) the funds underlying the uncashed check to the appropriate state after the escheat period has elapsed. If we are required to mail an escheat notice to you, we may charge you a fee. What are checking subaccounts? For each checking account you maintain with us, we may establish on your behalf a master account and two subaccounts. All information that is made available to you about your HSA will be at the master account level. The subaccounts are composed of a savings account and a checking account. On the first day of each month, we will allocate funds between the two subaccounts as appropriate. Items received by us that are drawn against your master account will be presented for payment against the checking subaccount. Funds will be transferred from the savings subaccount as may be needed to cover checks presented on the checking subaccount. On the sixth transfer from the savings subaccount during a statement period, all of the funds on deposit in the savings subaccount will be transferred to the checking subaccount. The use of subaccounts will not affect the interest you earn. Note: The above requirements apply only to the FDIC-insured HSA Deposit Account. Rights and responsibilities What responsibilities and liabilities do Wells Fargo and you have to each other? We are responsible for exercising ordinary care and complying with the Agreement. When we take an item for processing by automated means, ordinary care does not require us to examine the item. In all other cases, ordinary care requires only that we follow standards that do not vary unreasonably from the general standards followed by similarly situated banks. Except to the extent we fail to exercise ordinary care or to comply with the Agreement, you agree to indemnify and hold us harmless from all claims, demands, losses, liabilities, judgments, and expenses (including attorney s fees and expenses) arising out of or in any way connected with our performance under the Agreement. You agree this indemnification will survive termination of the Agreement. In no event will either Wells Fargo or you be liable to the other for any special, consequential, indirect or punitive damages. The limitation does not apply where the laws governing your HSA prohibit it. We will not have any liability to you if your HSA has insufficient available funds to pay your items due to actions we have taken in accordance with the Agreement. Circumstances beyond your control or ours may arise and make it impossible for us to provide services to you or for you to perform your duties under the Agreement (e.g., including but not limited to any act of God, war, terrorist activity, natural disaster). If this happens, neither Wells Fargo nor you will be in breach of the Agreement. If we waive a right with respect to your HSA on one or more occasions, it does not mean we waive the same right on any other occasion. What are we allowed to do if there is an adverse claim against your HSA? An adverse claim occurs when: Any person or entity makes a claim against your HSA funds, or 7

12 We believe a dispute exists over who has account ownership or authority to withdraw funds from your HSA. In these situations, we may take any of the following actions without any responsibility to you: Continue to rely on any signature card(s) on file. Honor the claim against your HSA funds if we are satisfied the claim is valid. Freeze all or a part of the funds in your HSA until we believe the dispute is resolved to our satisfaction. Close your HSA (liquidating any investments in the closure process) and send the available balance in your account payable to you or to you and each person or entity who claimed the funds. Pay the funds into an appropriate court (liquidating any investments in the process). We also may charge any account you maintain with us for our fees and expenses in taking these actions (including attorney s fees and expenses). Are we allowed to restrict access to your HSA? Yes, if we suspect any suspicious, unauthorized, or unlawful activities, we can restrict access to your HSA and other accounts with us that you maintain or control. How do we handle legal process? Legal process includes any levy, garnishment or attachment, tax levy or withholding order, injunction, restraining order, subpoena, search warrant, government agency request for information, forfeiture or seizure, and other legal process relating to your HSA. We will accept and act on any legal process we believe to be valid, whether the process is served in person, by mail, by electronic notification, or at any banking location. If we incur any fees or expenses (including attorney s fees and expenses) due to responding to legal process related to your HSA, we may charge these costs to your HSA. When do we verify your transactions? All transactions, including those for which we give you a receipt at our teller line, are subject to our verification. Deposit verification does not occur at the teller window. Consequently, the receipt or notice you receive when making your deposit does not prove that we verified your deposit. We may reverse or adjust any incorrect credit made to your HSA without notifying you in advance. When do we share information about your HSA with others? Generally, if we do not have your consent, we will not share information about your HSA. However, we may share information about your HSA in accordance with our Privacy Policy which has been provided to you. Can we share information about your HSA with your employer? If your employer has made this HSA available to you, you hereby authorize us to provide information about this HSA to your employer and those acting on your employer s behalf. This information may be in connection with the opening, maintenance, and closure of your HSA. You acknowledge that your employer and all others acting on your employer s behalf (if applicable), may also provide information to us on your behalf to open and maintain your HSA. Are we allowed to monitor and record communications? Yes, we can monitor, record, and retain your communications with us at any time without further notice to anyone, unless the laws governing your HSA require further notice. Monitored and recorded communications include telephone conversations, electronic messages, electronic records, or other data transmissions. What is your responsibility for using your HSA or card for illegal transactions? You must not use your HSA or card for any illegal purpose whatsoever. You must not use your HSA or card to fund any account that is set up to facilitate internet gambling. We may deny transactions or authorizations from merchants who are apparently engaged in internet gambling or who identify themselves through the card transactions record or other means as engaged in the internet-gambling business. 8

13 What other rights and responsibilities do you and Wells Fargo have under the Code? You own your HSA and your interest in the HSA is generally non-forfeitable. There are limited circumstances in which your employer may recover contributions they have made to your account. You agree to provide us with all information needed to enable us to carry out our obligations as custodian. This includes the preparation of any report or return that we are required to file with the IRS. We will prepare and submit any report or return required by the IRS. Neither you nor we will engage in any prohibited transaction with respect to this HSA (such as borrowing or pledging the account or engaging in any other prohibited transaction as defined in section 4975). HSA eligibility, contributions, and distributions HSA eligibility Who is eligible to contribute to an HSA? You are eligible to contribute to an HSA if: 1. You are covered under a high deductible health plan ( HDHP ); 2. You are not also covered by any other health plan that is not an HDHP (with certain exceptions for plans providing preventive care and limited types of permitted insurance and permitted coverage); 3. You are not entitled to Medicare; and 4. You cannot be claimed as a dependent on another person s tax return. You acknowledge and agree that you are responsible for determining if you are an eligible individual under Section 223(C)(1) of the Internal Revenue Code of 1986 and related regulations (the Code ). We are not responsible for verifying your eligibility status. Special rules apply for Veterans Affairs and Indian Health Services. The Internal Revenue Service ( IRS ) may modify eligibility criteria from time to time. HSA contributions What is our role in accepting contributions? We will accept contributions to your HSA made by you or on your behalf by your employer, family member, or any other person. In parts of this HSA Custodial Agreement, contributions will be referred to as deposits. We will not accept contributions that exceed the maximum contribution limit for family coverage plus the catch up contribution limit (with an exception for rollover contributions from HSAs and Archer MSAs). What is the deadline for making contributions? You can make contributions for any tax year at any time before the federal income tax return filing deadline for that year without extensions (generally April 15 of the following year). Can you roll over funds from another HSA or MSA? Yes. You can make rollover contributions from an HSA or an Archer MSA, and they do not count toward the maximum annual contribution limit. Can you transfer funds from an IRA? Yes. Qualified HSA funding distributions from an individual retirement account ( IRA ) must be completed in a trustee-to-trustee transfer. These transfers count toward the maximum annual contribution limit. What are the contribution limits? It is your responsibility to determine your personal contribution limit, and whether you have exceeded the maximum annual contribution limit under the Code Section 223(b). Contributions for your benefit to Archer MSAs and other HSAs count toward the maximum annual contribution limit for this HSA. Additional catch-up contributions may be made if you are at least age 55 or older and not enrolled in Medicare. 9

14 What happens if you exceed the contribution limit? If you contribute over the maximum annual contribution limit, any excess contributions are subject to an excise tax. However, eligible catch-up contributions are not subject to an excise tax. If this is the case, you should notify us that excess contributions have been made to your HSA. It is your responsibility to request the withdrawal of these contributions and related income. Are there any situations where we may return or refuse excess contributions without your request? Yes. We may refuse or return contributions to your HSA that exceed the maximum annual contribution limit for family coverage plus catch-up contributions without your request. If we return contributions in excess of this limit to you and there is insufficient cash in your HSA Deposit Account, we may liquidate any investments in your HSA to cover the excess contribution amount. Investments will be liquidated beginning with the most conservative fund and ending with the most aggressive fund. (For more information on the risk and return characteristics of investments, visit wellsfargo.com or call HSA Customer Service.) The amount liquidated will be equal to the lesser of: (1) the amount in excess of the maximum contribution limit for family coverage plus catch-up contributions that are not covered by your HSA Deposit Account balance, plus $20 to cover market fluctuations; or (2) the value of your shares in the mutual funds. HSA distributions How can you use your HSA funds? Distributions from your HSA that are used to pay or reimburse qualified medical expenses under Code Section 213(d) for you, your spouse, or tax dependents are tax free. However, distributions that are not used for qualified medical expenses are included in your gross income and are subject to an additional 20 percent tax. The additional 20 percent tax does not apply if the distribution is made after your death, disability, or reaching age 65. Who determines if a distribution is for a qualified medical expense? You are responsible for determining if your distributions are for the payment or reimbursement of qualified medical expenses. You must maintain sufficient records to show, if required by the IRS, that your distributions are qualified. Wells Fargo is not required to verify that your distributions are for qualified medical expenses. We may, on a case-by-case basis or as a matter of policy, place reasonable restrictions on both the frequency and the minimum amount of distributions from your HSA. Can you return a distribution that you took by mistake? Yes, in some circumstances. The IRS has said that if there is clear and convincing evidence that amounts were distributed from an HSA because of a mistake of fact due to reasonable cause, you may repay the mistaken distribution no later than the tax deadline (generally April 15) following the first year you knew or should have known the distribution was a mistake. Contact HSA Customer Service to return a mistaken distribution. Account closures and suspension of services Who is allowed to close your HSA? Each party may terminate this Agreement and close your HSA at any time, for any reason (including, but not limited to the fact that your HSA has had a zero balance for a period of two months or more) by giving written notice to the other. What process do we follow if we close an HSA? We can resign as custodian at any time effective thirty (30) days after we mail our notice of resignation to you. Upon receipt of that notice, you must transfer your HSA to another financial institution. If you do not close or transfer your HSA within thirty (30) calendar days of the date we mail to you, we have the right to transfer your HSA assets to a successor HSA custodian or trustee that we choose in our sole discretion, or we may send your HSA balance to you in a single sum. If you hold HSA investments, we will liquidate those investments at some point between the time we notify you and the time we transfer or close your HSA. We 10

15 will not be liable for any actions or failures to act on the part of any successor custodian or trustee, or for any tax consequences you may incur that result from the transfer or distribution of your assets under this section. We may close your HSA at our discretion without providing advance-written notice if we determine that you have acted with gross negligence or willful misconduct. In this situation, we will liquidate any investments and send your balance to you. We will not be liable for any tax consequences you may incur as a result of this distribution. What process should you follow to close your HSA? You have the right to close your HSA or to request a transfer. Before you close your HSA, you should first liquidate any HSA investments that you hold. Once those funds have been transferred to your HSA Deposit Account, you may close your HSA. If you direct us to close your HSA and have not liquidated your investments, you are authorizing us to liquidate your investments when we receive your account closure form. You understand that there may be a reasonable administrative delay in liquidating investments. Are there fees for closing your HSA? If your HSA is closed, we may charge your HSA a reasonable amount of money to cover any associated costs, including but not limited to any fees, expenses or taxes chargeable against your HSA. Where will we send your money when we close your HSA? If your HSA is closed and the assets are not transferred to a successor custodian, we may send your HSA balance to your most recent address shown on our records by ordinary mail. You understand that you are responsible for tax consequences associated with closing your account. What happens if Wells Fargo is purchased by or assigned to another organization? If Wells Fargo (or any affiliate which includes the HSA) is purchased by or assigned to another organization, that organization shall automatically become the trustee or custodian of your HSA, but only if it is the type of organization that is authorized to serve as an HSA trustee or custodian. Are we allowed to terminate or suspend a service related to your HSA? Yes, we can terminate or suspend specific services (e.g., wire transfers) without closing your HSA and without prior notice to you. You can discontinue using a service at any time. Deposits to your HSA Are there any restrictions on our accepting deposits to your HSA? We may accept a deposit to your HSA Deposit Account at any time and from any person. When we cannot verify an endorsement, we can refuse to pay, cash, accept for deposit, or collect the item. Also, we may require all endorsers be present. We may require you to deposit an item instead of permitting you to cash it. What happens if we send an item for collection? We may, upon notice to you, send an item for collection instead of treating it as a deposit. This means that we send the item to the issuer s bank for payment. Your HSA will not be credited for the item until we receive payment for it. What are the requirements for a correct endorsement? An endorsement is a signature, stamp, or other mark on the back of a check. If you have not endorsed a check that you deposited to your HSA, we may endorse it for you. Are we bound by restrictions or notations on checks? No, we are not bound by restrictions or notations, such as Void after six months, Void over $50, and Payment in full. When you cash or deposit a check with a notation or restriction, you are responsible for any loss or expense we incur relating to the notation or restriction. 11

16 What happens if you breach a warranty associated with an item? If you breach any warranty you make to us under the laws governing your HSA with respect to any item, you will not be released or discharged from any liability for the breach so long as we notify you of the breach within 120 days after we learn of the breach. If we fail to notify you within this 120 day period, you will be released from liability and discharged only to the extent our failure to notify you within this time period caused a loss to you. How do we handle non-u.s. items? A non-u.s. item is an item (1) payable in a currency other than U.S. Dollars or (2) drawn on a financial institution that is not organized under U.S. law. We are not required to accept a non-u.s. item for deposit to your HSA or for collection. We may accept non-u.s. items on a collection basis without your specific instruction to do so. We can reverse any amount we have credited to your HSA and send the item on a collection basis even if we have taken physical possession of the item. If we accept a non-u.s. item, the U.S. Dollar amount you receive for it will be determined by our exchange rate that is in effect at the time of deposit or our receipt of final payment (less any associated fees) of the collection item. If the non-u.s. deposited item is returned unpaid for any reason, we will charge the amount against your HSA (or any other account you maintain with us) at the applicable exchange rate in effect at the time of the return. Our Funds Availability Policy does not apply to a non-u.s. item. What is our responsibility for collecting a deposited item? We will not be responsible for the lack of care of any bank involved in the collection or return of a deposited item, or for an item lost in collection or return. What happens when a deposited or cashed item is returned unpaid? We can deduct the amount of the deposited or cashed item from your HSA. We can do this when we are notified that the item will be returned. We do not need to receive the actual item (and usually do not receive it). We can do this even if you have withdrawn the funds and the balance in your HSA is not sufficient to cover the amount we hold or deduct so that your account becomes overdrawn. In addition, we will charge you all applicable fees and reverse all interest accrued on the item. We may place a hold on or charge your HSA for any check or other item deposited into your HSA if a claim is made or we otherwise have reason to believe the check or other item was altered, forged, unauthorized, has a missing signature, a missing or forged endorsement, or should not have been paid, or may not be paid, or for any other reason. When the claim is finally resolved, we will either release the hold or deduct the amount of the item from your account. We are not legally responsible if we take or fail to take any action to recover payment of a returned deposited item. What happens when an electronic payment is reversed? We may deduct the amount of an electronic payment credited to your HSA (e.g., direct deposit) that is reversed. We can deduct the amount from that HSA or any other HSA you have at any time without notifying you, to the extent that doing so is in accordance with the laws governing your HSA. You agree to immediately repay any overdrafts resulting from the reversed payment. Are you responsible for assisting us in reconstructing a lost or destroyed deposited item? If a deposited item is lost or destroyed during processing or collection, you agree to provide all reasonable assistance to help us reconstruct the item. Funds Availability Policy Our policy is to make the first $400 of a business day s check deposits to your HSA made at a Wells Fargo store location available to you on the day we receive your deposits. Check deposits not receiving such availability on the business day we receive the deposits will receive availability on the first business day after the day we receive your deposits. For check deposits not made in person, funds will be available on the second business day after the day of deposit. Incoming wire transfers and incoming direct deposits directly to your HSA and cash deposited at a teller window will be available on the business day we receive the deposit. Once they are available, you can 12

17 withdraw the funds in cash and we will use the funds to pay checks and other items presented for payment and applicable fees that you have incurred. Determining the day of receipt For determining the availability of your deposits, every day is a business day, except Saturdays, Sundays, and federal holidays. If you make a deposit before our established cutoff time on a business day that we are open, we will consider that day to be the day of your deposit. However, if you make a deposit after our cutoff time or on a day we are not open, we will consider the deposit was made on the next business day we are open. Our established cutoff time is when a store closes for business and may vary by location. Longer delays may apply In some cases, we will not make the first $400 of a business day s deposits made at a store location available to you on the day we receive the deposits. Further, in some cases, depending on the type of check that you deposit, funds may not be available until the second or third 1 business day after the day of your deposit. The first $200 of your deposit, however, may be available on the first business day. Except as otherwise explained in this paragraph, if we are not going to make all funds from your deposit available on the business day of deposit or the first business day after the day of deposit, we will notify you at the time you make your deposit. We will also tell you when the funds will be available. If your deposit is not made directly to a Wells Fargo employee, or if we decide to take this action after you have left the premises, we will mail you the notice by the first business day after we receive your deposit. If you need the funds from a deposit right away, you may ask us when the funds will be available. In addition, funds you deposit by check may be delayed for a longer period under the following circumstances: We believe a check you deposit will not be paid You deposit checks totaling more than $5,000 on any one day You redeposit a check that has been returned unpaid You have overdrawn your HSA repeatedly in the last six months There is an emergency, such as failure of computer or communications equipment We will notify you if we delay your ability to withdraw funds for any of these reasons, and we will tell you when the funds will be available. The funds will generally be available no later than the seventh or the eighth 1 business day after the day of your deposit. Special rules for new accounts If you are a new customer, the following special rules will apply during the first 30 days your HSA is open. Incoming wire transfers, electronic direct deposits, and cash deposited at a store location will be available on the day we receive the deposit. For check deposits made at a store location, funds will be available on the first business day after deposit. For check deposits not made in person, funds will be available on the second business day after the day of deposit. If we delay the availability of your deposit, the following special rules may apply: The first $5,000 of a day s total deposits of cashier s, certified, teller s, traveler s, and federal, state, and local government checks and U.S. Postal Service money orders made payable to you will be available on the first business day after the day of your deposit at a store location and the second business day for check deposits not made in person. The excess over $5,000 and funds from all other check deposits will be available on the 11th or 12th 1 business day after the day of your deposit. The first $200 of a day s total deposit of funds from all other check deposits, however, may be available on the second business day after the day of your deposit. We will notify you if we delay your ability to withdraw funds and we will tell you when the funds will be available. Holds on other funds (check cashing) If we cash a check for you that is drawn on another bank, we may withhold the availability of a 13

18 corresponding amount of funds that are already in your HSA. Those funds will be available at the time funds from the check we cash would have been available if you had deposited it. Holds on other funds (other HSA) If we accept a check for deposit that is drawn on another bank, we may make funds from the deposit available for withdrawal immediately but delay your ability to withdraw a corresponding amount of funds that you have on deposit in another HSA with us. The funds in the other HSA would then not be available until the time periods that are described in this Policy. 1 We may delay availability of funds by one additional business day for certain checks deposited at a Wells Fargo location in Alaska. This right applies only if the check is drawn on or payable at or through a paying bank not located in Alaska. Interest-earning HSA Deposit Account What interest rate applies to the HSA Deposit Account? When you open an HSA, we provide the current interest rates and Annual Percentage Yields (APY). Your HSA Deposit Account earns interest at a variable rate. We may change the interest rate for your HSA Deposit Account at any time. Current rates are available at wellsfargo.com/hsa. The interest rate may vary depending on your daily balances (tiered-rate account). We may pay the same interest rate on more than one tier. The tiers and corresponding interest rates are disclosed in the rate sheet. How do we calculate earned interest? We calculate interest using the daily collected balance method. This method applies a daily periodic rate to the collected balance in your HSA Deposit Account each day. Interest is calculated using a 365-day year. When does a deposit begin accruing interest? Cash deposits begin accruing interest the same business day a deposit is credited to your HSA Deposit Account. If you deposit an item such as a check, interest begins accruing on the business day we receive credit for the item. Is interest compounded and when is it credited? Interest will compound on a daily basis. Interest will be credited on a monthly basis. How are interest adjustments reflected on your statement? If you receive a statement for your HSA, an interest adjustment may be reflected on the statement for the month after it occurs rather than the month in which it occurs. What is the difference between Annual Percentage Yield (APY) and Annual Percentage Yield Earned (APYE)? The Annual Percentage Yield (APY) is a percentage rate reflecting the total amount of interest paid on the HSA Deposit Account based on the interest rate and the frequency of compounding for a 365-day period. The Annual Percentage Yield Earned (APYE) is an annualized rate that reflects the relationship between the amount of interest actually earned on your HSA Deposit Account during the statement period and the average daily balance in the HSA Deposit Account for the statement period. We calculate both your APY and APYE according to formulas established by federal regulations. The APYE appears on your HSA statement. Investments and Target Balance requirement Can you invest your HSA funds? Yes. You have the option to invest a portion of your HSA funds, as long as you satisfy a Target Balance requirement. You may choose from a selection of mutual funds for which we or our affiliate may provide services and receive compensation. You are responsible for directing us on how to invest the funds in your HSA. Mutual funds are not FDIC insured, may lose value and have no bank guarantee. For a description of the mutual funds that are available to you, visit wellsfargo.com/hsainvesting or call HSA Customer Service at

19 What is the Target Balance requirement? Before you can invest in mutual funds, you must have a certain amount of money in your HSA Deposit Account ( Target Balance ). We may set the Target Balance or you may choose from the Target Balance options we provide. What happens if your HSA Deposit Account balance falls below the Target Balance? If you withdraw funds from your HSA Deposit Account and the HSA Deposit Account balance falls below the Target Balance, future contributions will be applied to the HSA Deposit Account until the Target Balance is met (e.g., funds will not sweep to your investment account until the Target Balance is met). How do you activate your HSA investment account? To activate your HSA investment account, to select your investments, and to learn more about investing with the HSA, sign on to Wells Fargo Online at wellsfargo.com or call If you have an investment account with the Automatic Transfer to Investments feature turned on, and do not pre-select mutual fund elections, funds will be invested in the Wells Fargo Cash Investment Money Market Fund-S until you make other mutual fund elections. What is your responsibility regarding investment directions? You must provide us investment directions in a form that we find acceptable. For example, we accept direction given online or by telephone for the purchase or sale of mutual funds in the HSA or for the transfer of funds between the investment portion of the HSA and the HSA Deposit Account. If you direct us to purchase mutual funds, we will retain such investments until you tell us to sell the investments. We will have no responsibility other than to comply with your directions, and are not liable for complying with any of your directions. Who determines which investments are suitable for your HSA? You are solely responsible for deciding which investments are suitable and for addressing any other federal or state law issues which may arise regarding investments in the HSA. You acknowledge that certain investments may not be suitable for your HSA. For example, the funds in this HSA may not be invested in life insurance contracts or in collectibles as defined in Section 408(m) of the Code and applicable guidance. The assets of this HSA may not be commingled with other property except in a common trust fund or common investment fund. You also acknowledge and agree that we will not, and are under no obligation or duty to: Provide any investment advice with respect to your HSA Offer any opinion or judgment to you on matters concerning the value or suitability of any investment or proposed investment for your HSA Question any direction you give in the investment of your HSA assets. In the absence of instructions from you, or if your instructions are not in a form we have determined to be acceptable, we have the right to hold any uninvested funds in the HSA Deposit Account. We have no responsibility to invest those funds unless or until directed by you. Will we share your personal information with the mutual fund companies your funds are invested in? The Securities and Exchange Commission adopted the Beneficial Owner Information Disclosure Rule #14b-2 (Rule) in 1986 as part of its effort to improve communications between publicly held companies and beneficial owners of the securities registered in the name of certain nominees. For your protection, the rules prohibit the requesting company from using your name and address for any purpose other than corporate communications. By agreeing to the terms of the HSA, you authorize us to disclose upon request to companies whose securities are held in your name and address and holdings in the account of securities issued by such companies. If you wish to revoke this authorization, please contact us at How are proxies handled? We are authorized to forward all proxies for voting securities and all corporate literature issued by any company whose securities are in the HSA to you. We will not vote any proxies. 15

20 What notifications will we provide you regarding your investments? We will furnish you with statements of assets and transactions monthly. You understand that you are entitled to receive, at no additional cost, a written notification of each purchase and sale made on behalf of the HSA. You also understand that you have a right to receive the notification within five business days from the date of the transaction or within five business days after our receipt of a broker s confirmation. Instead of separate notification for each securities transaction, you authorize us to provide information on securities transactions in periodic account statements. Sweep Agreement This Part and the prospectus for the mutual funds you designate when you select investments for your HSA ( Designated Fund(s) ) contain provisions that govern the sweep feature of your HSA. These documents, which we may modify from time to time, are referred to in this Part as the Governing Documents for the sweep feature of your HSA. Additional disclosures regarding the sweep feature of your HSA and the Designated Funds appear on the first page of this HSA Custodial Agreement. By turning the Automatic Transfer to Investments feature on by going online to wellsfargo.com or by calling HSA Customer Service at , you appoint us as your agent to purchase and redeem shares in the Designated Funds. Your HSA consists of the HSA Deposit Account that is linked, at your option, to investments in Designated Funds through a custodial account at Wells Fargo ( Bank Custodial Account ). When you have selected investment options, each funds business day we calculate the difference between the available funds in the HSA Deposit Account and the Target Balance requirement. The difference is referred to as the Net Sweep Amount. Deposits to your HSA may not be included in your Net Sweep Amount on the same day that we receive them, in line with our Funds Availability Policy set forth above. For purposes of the sweep feature of your HSA, a funds business day is each Monday through Friday, except federal holidays and days on which we or the markets are closed. At the close of any funds business day, we will sweep the Net Sweep Amount from the HSA Deposit Account into the Bank Custodial Account, where these funds will be held for your benefit. The Net Sweep Amount must be at least $20 for the sweep to occur. On the following funds business day, we will use these funds to purchase shares for you in your Designated Funds. We maintain your shares in your Designated Fund(s) in an omnibus account in our name at the designated Fund company(s). The prospectus contains detailed information about Designated Fund(s), including information about dividends, tax treatment for investments in Designated Fund shares, charges, and expenses. Consult your tax advisor regarding the tax consequences of your investments in Designated Fund(s) through your HSA. If your HSA is closed before the end of a month, you will not receive dividends that accrued on your shares in the Designated Fund until they are paid at month end. If your HSA is closed at month end, dividends may, in certain circumstances, accrue on your shares in the Designated Fund, and these dividends will be paid at the end of that following month. FDIC regulations require all insured depository institutions to disclose in writing to sweep account customers whether funds in a sweep account are deposits within the meaning of 12 U.S.C. 1813(l) and, if the funds are not deposits, the status such funds would have if the depository institution failed. If we were to fail, amounts held in your HSA Deposit Account and amounts held for your benefit in the Bank Custodial Account, whether before we purchase shares for you in the Designated Fund or after we redeem your shares, would be treated as a deposit and insured under the applicable FDIC insurance rules and limits. Your shares in the Designated Fund(s) are not deposits and are not eligible for FDIC insurance. You are the owner of your shares in the Designated Fund(s). Available balance, posting order, and overdrafts How do we determine your HSA s available balance? Your available balance is our most current record of the amount of money available for your use or withdrawal from your HSA Deposit Account. We use the available balance to authorize your transactions during the day (e.g., card purchases and ATM withdrawals). We also use the available balance to pay your transactions in our nightly processing. We calculate your available balance as follows: 16