Welcome to your Citizens Bank Health Savings Account

Transcription

1 Welcome to your Citizens Bank Health Savings Account

2 Thank you for choosing Citizens Bank as the custodian of your Health Savings Account (HSA). Your account has been established and you can begin making contributions as of the effective date of your High Deductible Health Plan (HDHP). To access your account online, you must register your account at and click Access your Citizens Bank HSA on the far right hand side of the screen. As part of the registration process, you will choose your own user name and password, as well as a picture ID and a set of challenge questions and answers for additional security. During the registration process, you must enter, when prompted, the Employer ID that you used to apply for the account and employee ID which is your social security number, so be sure to have this information readily available. Once you have registered, you can sign-in to take advantage of your HSA, by researching important HSA related information, managing your account and viewing transaction activity. USE THIS GUIDE TO GET STARTED Now that your account is open, as soon as you or your employer have funded your account, you can begin using funds from your account to pay for qualified medical expenses. Please provide your account number and routing transit number ( ) to your employer in order to fund your account on a pre-tax basis. Read through this guide for information on using your Health Savings Account, including making contributions, handling withdrawals, and getting the most from your account as you take control of your health care costs. YOUR CITIZENS BANK HSA DEBIT MASTERCARD GIVES YOU ACCESS TO YOUR CITIZENS BANK HSA FUNDS You will receive your Citizens Bank HSA Debit MasterCard in a few days. It can be used to pay for IRS qualified medical expenses anywhere that MasterCard is accepted. You can also use online bill pay or order paper checks to reimburse yourself or pay a provider. If you want to order checks, please complete the signature card form found under the Forms & Documents tab and mail it to the address on the form. This will trigger our Plus Service and there may be an added fee as well as a fee for the checks. Please refer to your pricing schedule located in the Forms & Documents tab. If you have any questions regarding your HSA, please call us at Account information is available 24 hours a day, seven days a week. Visit us at to learn more about HSAs and view your transactions.

3 MAKE CONTRIBUTIONS TO YOUR CITIZENS BANK HSA Contributing money to your HSA helps you build a balance to assist with current and future health care expenses. You can contribute money to your account in several convenient ways: Make pre-tax contributions through automatic payroll deductions (if available) or direct deposits. Deposit Coupons are also available. Please download the Deposit Coupon form located in the Forms & Documents tab online at and mail the form to the address on the form. Upon receipt, mail the coupon along with a personal check made payable to Citizens Bank with your account number in the memo field. We do not accept deposits at any of our branches. You can use your online bill pay through your local financial institution. Make the check payable to Citizens Bank including your account number in the memo field and mail to Citizens Bank, HSA, P.O. Box , Boston, MA Consolidate funds from another HSA. Complete the HSA to HSA Rollover Form and follow the instructions on the form. Contact our customer service representatives at for further details. You may also be able to make a one-time direct transfer from an Individual Retirement Account (IRA) into your HSA. Complete the IRA Rollover Form and mail to the address on the form. You can also call us at for more information on rollovers and be sure to consult your tax advisor regarding state rules. BE AWARE OF CONTRIBUTION LIMITS Keep in mind that HSA contribution limits are set by the IRS each year. You are allowed to contribute the maximum amount even if you do not have HDHP coverage for the entire calendar year. You have until the federal tax filing deadline to contribute for the taxable year. CONTRIBUTE THE MAXIMUM ALLOWABLE AMOUNT As you make decisions about how much to contribute from your paycheck, it s important to note that contributing the maximum allowable amount helps you to get the most from your HSA. At the very least, you ll want to contribute enough to cover the healthcare expenses you can anticipate. You may also want to contribute money to cover unexpected medical expenses. Because your HSA balance will roll over from year-to-year, there is no penalty for contributing more than you re able to use in one year. The tax advantages of an HSA make it a powerful long-term savings vehicle. CATCH-UP CONTRIBUTIONS FOR PEOPLE 55 AND OLDER If you are age 55 or older, you may be able to make a catch-up contribution. Even if you join a qualified HDHP after the start of the year, you can contribute the maximum amount, as long as you have HDHP coverage for the last month of the taxable year and for the following 12 months. *State taxes may vary. HSA Maximum Contributions Limits Single $3,250 $3,300 Family $6,450 $6,550 Catch up (over age 55) $1,000 $1,000

4 USING YOUR HSA FUNDS HSA funds can be used to pay for qualified medical expenses, such as: Medical Dental Vision Prescription Insurance Deducible Amounts Go to and use the HSA Quick Expense Qualifier tool to see which types of expenses are qualified. You can also go to and download Publication 502. Generally, qualified medical expenses are those expenses directly related to the alleviation or prevention of physical or mental illness. If you use HSA funds for medical expenses that are not qualified, they will be included in your taxable income. (HSA withdrawals made for non-qualified expenses are subject to ordinary income tax and IRS penalties may be applicable to non-qualified expenses paid for with funds from your HSA. Additionally, state taxes may vary so please consult your tax advisor.) TO PAY FOR IRS QUALIFIED MEDICAL EXPENSES, YOU CAN: Use your Citizens Bank HSA Debit MasterCard where accepted, such as the pharmacy or doctor s office. Write your Citizens Bank HSA Debit MasterCard number on medical bills to have your HSA funds directed to the expense. Use Citizens Bank s online bill payment to pay for a healthcare expense or to reimburse yourself for an out-of-pocket medical expense. Order paper checks by completing a signature card form which can be found under the HSA Forms & Documents after you have signed into your account. Please be advised there may be a fee associated with this so please check your pricing schedule. To reorder checks, download the deposit coupon form on the HSA Forms & Document tab and mail it to the address on the form. KEEP GOOD RECORDS OF YOUR EXPENSES Keep track of your expenses and payments by using your secure online account access to see balances, view transactions, pay your bills and manage your investments. Be sure to keep receipts for all of your medical expenses for at least three years for tax-reporting purposes. REACHING YOUR DEDUCTIBLE The qualified medical expenses you pay for with your HSA may or may not count toward your HDHP deductible. Track your expenses and check your health plan rules to see which expenses will be applied toward your deductible. As the account holder of the HSA, you are responsible for completing IRS Form 8889 each year with your taxes. It is important to maintain receipts and accurate financial records for tax purposes. Your monthly statement and your paid healthcare receipts should be retained as proof of payment for the IRS and used to complete Form Through Citizens Bank s online portal, you can view the year-to-date contributions and distributions to your HSA, and your monthly statements to assist with your filings. Citizens Bank will provide you with a Form 1099-SA by January 31 to report HSA distributions and a Form 5498-SA by May 31 to report HSA contributions which include rollovers and transfers for the taxable year. You have until the IRS filing deadline to contribute to your HSA for the prior year. Most individuals file their taxes prior to receiving their 5498-SA so this is for informational purposes only. Your records, along with the year-to-date information we provide online, should assist you in completing the Form State rules apply to your HSA contributions and distributions and vary by state. The information set out herein is for information purposes only and not intended to be tax or legal advice. The tax implications of a HSA are complex, please consult a qualified tax advisor for specific advice and guidance regarding how State and Federal tax laws and rules affect you.

5 HSA INVESTMENT OPTIONS ARE YOU A SPENDER OR SAVER? If you don t use all of your HSA funds for healthcare expenses over the course of the year, you don t lose them like with other healthcare accounts. You have the option to grow your money even more by investing in a select list of mutual funds. SPENDER OR SHORT-TERM INVESTOR: COMPETITIVE INTEREST RATES The basic Citizens Bank HSA deposit account is similar to an interest-bearing checking or savings account. Savers will enjoy earning a competitive interest rate on all contributions, and the interest accumulates tax-free.* Withdrawals are also tax-free as long as they are used for qualified medical expenses.* SAVER OR LONG-TERM INVESTOR: POWERFUL OPTIONS The Citizens Bank HSA investment account was designed for account holders who are interested in using their HSA as a long-term savings vehicle. You must maintain a balance in your Health Savings Account of $2,500 and anything in excess of that may be invested in increments of $100. After you access your account online go to the Investment tab and Documents and Forms tab to find out more information about investing or call us at Once you have made the decision that you want to invest in the mutual funds that we offer, please complete the Investment Account Opening Form and mail to the address on the form. We will open the investment account for you and you can begin investing online. Mutual funds are not bank deposits or obligations, are not guaranteed by any bank, and are not insured or guaranteed by the FDIC. Investment in mutual funds involves risk, including possible loss of principal. HSA INVESTMENT ACCOUNT CHOICES View transactions, holdings, and statements online, update your account information or place a trade. Once an investment account is established, simply access your account at by entering your User ID and password. In addition to all of your account information, you will also have the ability to view your HSA account balances and manage your portfolio holdings and transactions. * HSA withdrawals made for non-qualified expenses are subject to ordinary income tax and IRS penalties may be applicable to non-qualified expenses paid for with funds from your HSA. Additionally, state taxes may vary so please consult your tax advisor. ACCESS YOUR CITIZENS BANK HSA ACCOUNT ONLINE, ANYTIME LOG IN TO YOUR CITIZENS BANK HSA ACCOUNT ONLINE WHENEVER IT S CONVENIENT FOR YOU. You can view your account balances, see transactions, manage your investments, get a consolidated HSA statement, and more. Go to Enter your User ID* Enter your password* * You will set up your username and password during your first visit to the site. You can view and manage your account anytime and anywhere you have access to the Internet via your computer or smart phone. If you have any questions regarding your HSA, please call Customer Support at You can access your account information 24 hours a day, seven days a week.

6 MAKE THE MOST OF YOUR CITIZENS BANK HSA 1. Contribute the maximum to your HSA. 2. Manage your health care expenses wisely. 3. Learn about and practice health consumerism 4. Invest unused HSA funds and make your money work harder for you. 5. Take good care of yourself and your family a healthy lifestyle makes a big difference. THANK YOU FOR CHOOSING CITIZENS BANK FOR YOUR HSA. For more information about HSAs, visit or call one of our Customer Support Specialists at Your Benefits Administrator will also be able to provide you information about your HSA. Note: Your Citizens Bank HSA is triple tax-advantaged. You can save tax free with your HSA. You can fund your HSA with pre-tax or tax-deductible contributions. Balances grow tax-free and withdrawals are also tax-free as long as the money is used for IRS-qualified medical expenses. State taxes vary. You will be responsible for retaining your monthly statements with your HSA records and all receipts for qualified medical expenses. Online Statements are available for 18 months. Statements are generated at the end of each calendar month so please access your account regularly. Consult your tax advisor to determine how HSAs affect your state and federal tax situation.

7 HEALTH SAVINGS ACCOUNT DEPOSIT COUPON Account # Name: Deposit Amount: $ Street: Tax Year: Current Year 1 Prior Year 2 City, State: Zip: Select one box to indicate type of contribution: Normal Contribution HSA to HSA Rollover 3 Correcting Deposit 4 Date: Deposits are not available for immediate withdrawal. Please Mail To: Citizens Bank Health Savings Account PO Box Boston, MA How to make a deposit by check: Make the check payable to Citizens Bank HSA for (fill in your name). You must mail the check with the completed deposit coupon to the address listed on the front of the coupon. Please include only one check with each deposit coupon. If you need more deposit coupons, please call Teller and ATM deposits are not accepted. 1,2 Tax Year: The IRS allows HSA account holders to make contributions for the previous tax year through your normal tax filing deadline, which is typically April 15 for the current year (not including extensions). Unless otherwise noted, we will treat any contribution as a contribution for the current tax year. Contribution Limit: Beginning in 2007, new rules apply to contributions, which may enable you to make a full year s contribution (including the catch-up amount), as long as you are an eligible individual with qualifying coverage on December 1. The maximum annual HSA contribution limit for eligible individuals and families changes each year. Please consult your employer or tax advisor for additional information. 3 Rollover Contribution: Generally, a qualifying rollover contribution to an HSA from another HSA or Archer MSA of yours must be made within 60 days of your receipt of the rollover distribution. Only one rollover distribution can generally be made within a 12 consecutive month period. You must report the distribution and amount rolled over on IRS Form 8853 (MSAs) or Form 8889 (HSAs). You may also be able to make a direct HSA trustee to HSA trustee transfer. This will require that your current trustee transfer funds directly to us. To make such a transfer or to roll over funds from an HRA, or FSA or an IRA, please go to Forms & Requests on Citizens Bank HSA Online Banking or call the Citizens Bank HSA PhoneBank at to receive the appropriate form. If you need additional information, please contact your tax advisor. 4 Corrective Deposit: If there is clear and convincing evidence that amounts were distributed from an HSA because of a mistake in fact due to reasonable cause, the account holder may repay the mistaken distribution no later than April 15 following the first year that the account holder knew or should have known the distribution was a mistake. For more information about HSAs, see IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans (available from the IRS Web site at or consult with your tax advisor.

8 2014 RBS Citizens Financial Group, Inc. All rights reserved. RBS Citizens is a brand name of RBS Citizens, N.A. Citizens Bank is a brand name of RBS Citizens, N.A. and Citizens Bank of Pennsylvania, which are separate legal entities. Member FDIC. CS#CMBR11024L HSA