WELCOME TO YOUR HEALTH SAVINGS ACCOUNT (HSA)

Transcription

1 WELCOME TO YOUR HEALTH SAVINGS ACCOUNT (HSA)

2 Congratulations! Thank you for opening a Health Savings Account (HSA) with TaxSaver Plan and Bancorp. We are here to help you and your family understand how to take full advantage of your HSA. Our goal is to provide you with an affordable, convenient and "Worry Free" approach to your HSA. Our website is designed to provide easy to follow tutorials that will simplify your HSA. Your account has been opened. Now, let's get started! The Fundamentals: The Health Savings Account (HSA) enables you to save, invest and spend funds for qualified medical expenses on a tax-advantaged basis. Your funds grow tax-free and unused HSA funds roll over from year to year. And, once the account is opened, it is always your account, even if you leave your Employer's employment down the road. Your HSA is a convenient and easy way to save for future medical expenses. What's Next?: Now that the account has been opened on your behalf, it is time to read more about how the HSA works and how to use the website to your benefit. In addition to this booklet, you will receive the following material shortly: 1) Welcome letter, sent via or mail, with your account number 2) Welcome containing instructions on how to log into the website. Please go to and click on the HSA bar. 3) HSA Debit Cards are mailed separately. If you also enrolled in a Limited Purpose FSA, offered by your Employer, the cards you receive will access the HSA and Limited Purpose FSA funds, all on the same cards!

3 What Documentation is Needed to Open a HSA?: To be in compliance with the USA Patriot Act, TaxSaver must provide certain information to our HSA Bank Partner to open your HSA. This information is provided to TaxSaver Plan by your Employer, via a secure eligibility file process. If the information provided to our HSA Bank Partner does not match the information that they pull from their resources of public data, Bancorp and / or TaxSaver Plan will contact you to provide additional information to Bancorp to verify your identity. This is for your protection as well as a government requirement when opening any bank account. Therefore, you may be asked to provide additional information and documentation before your account can be established. The additional information requested may be any one or combination of the following: copy of your current driver's license current government issued passport IRS Form W-2 Social Security Card a current utility bill showing your address Managing Your Account: Online access to your account will put you in control of your HSA funds. Once your account is opened, you may create your username and password. To access the site, first go to and click on the HSA bar. This will take you directly to the Wealthcare Portal (as seen below).

4 Please read through the instructions at the top of the page when creating your username and password. The Employee ID is your Social Security Number; the Card Number could be either of your cards, so you may have to enter one card number and then the other, if the first is not accepted.

5 Online Account Access Provides: View account and investment balances; Access to current and historical activity and balances Graphs and reports to monitor contribution limits "Shoe Box" to record and upload related medical receipts, for record keeping purposes Bill Pay feature Establish Account Alerts View and maintain account owner information Utilize contribution feature to set up electronic transfers Integrated investment option Access to online videos, calculators and other useful tools Online forms providing e-signature and auto delivery Contributions To Your Account: Contributing funds to your HSA helps you lower your taxable income and allows you to build a "nest egg" for future healthcare expenses. Contributions to your HSA may be made through payroll reduction, on a pre-tax basis. You may also choose to contribute additional amounts, up to the federal maximum, on an after-tax basis. Your Employer will deduct the HSA contribution from your paycheck each pay period and those funds will be sent to your HSA electronically within 72 hours of the deduction, assuming you have successfully opened your HSA with Bancorp. If you have an existing HSA and you would like to transfer those funds to the HSA with Bancorp, you may do so by accessing a transfer form, available online. Maximizing Contributions To Your Account: As you decide how much to contribute, it's important to note that contributing the maximum allowable amount helps you get the most from your HSA. At the very least, you'll want to contribute enough to cover anticipated healthcare expenses. Because your balance rolls over 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. The maximum annual contribution can be made even if you become HSA-eligible after your tax year begins, as long as you are covered under a HDHP on the first day of the last month of your tax year (December 1st for most taxpayers) and remain in a HDHP for the following 12 months.

6 See IRS publication 969 for additional details. Additionally, if you are 55 or older, you are allowed to make a $1, catch up contribution. Keep in mind that the HSA contribution limits are IRS regulated and tend to change each year. Coverage Level 2015 Contribution 2016 Contribution Catch-Up Contribution Limit Limit Single $3, $3, $1, Family $6, $6, $1, Using Your HSA Funds: HSA funds can be used, with no tax consequences, for qualified medical expenses, such as: Medical Expenses Prescription Expenses Dental Expenses Vision Expenses Medical Equipment Chiropractic Care Go to and use the Eligible HSA Expense tool to see which types of expenses are qualified. You can also go to and review Eligible Expenses for HSA as well. Generally, qualified medical expenses are those expenses directly related to the alleviation or prevention of a physical or mental illness or malfunction of the body. If you use your HSA funds for medical expenses that are not qualified, or any expenses that are not considered to be qualified, they will be included in your taxable income. Also, 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. State taxes may also apply. How to Pay for Qualified Expenses: Use your TaxSaver Plan Debit Card wherever debit cards are accepted Use Bancorp's online bill payment to pay your provider directly when the bill arrives Order paper checks and pay your provider directly when services are provided Use your credit card of choice to pay your provider and use your HSA account to pay your credit card bills for those qualified expenses **Keep receipts and Explanation of Benefits from your Insurance Provider for your records**

7 HSA Investment Options: Unlike other healthcare accounts, funds in your HSA do not expire and are not contingent upon your employment. Not only does your balance accrue interest, but you have a unique opportunity to grow your money even more by investing in a select list of mutual funds. The Bancorp 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 HSA of $2, and anything in excess of that may be invested. For more information about your investment options with Bancorp, please visit Recordkeeping for Tax Purposes: You are responsible for retaining your monthly statements with your HSA records as well as all receipts for qualified medical expenses. Online statements are available for up to 18 months. At year end, Bancorp will send you the following: 1099 SA - Received by January 31st and shows your annual distributions 5498 SA - Received by May 31st and shows annual contributions Thank you for choosing TaxSaver Plan and Bancorp for your HSA needs. Please contact TaxSaver Plan at with any questions, Monday - Friday 8:30-5:45 CST.