Health Savings Account
About us Central Bank opened it s doors in Jefferson City in 1902 For over 100 years we ve focused on personal service and leading product innovation Loriel Dulle Director of Retirement Planning Over 30 years experience 2
What is a Health Savings Account (HSA)? HSA is an account that couples with a high deductible health plan (HDHP) Intended to be used for unreimbursed medical expenses Allows the individual to take control of their health care costs 3
Health Savings Plan Diagram Health Savings Plan Health Savings Account High Deductible Insurance Plan Helps pay deductible Tax deductible deposits Tax deferred growth Tax-free for eligible expenses Protects you from large medical bills 4
Health Savings Accounts Eligibility Requirements Covered by a High Deductible Health Plan No other health coverage* Permitted insurance exceptions include accident, disability, vision, dental, long term care, specific disease. Not enrolled in Medicare Not claimed as dependent on another's tax return *No other health coverage that is not a High Deductible Health Plan (HDHP) 5
What is the difference between an HSA & Flexible Spending Account? You do not have to spend your contributions. The funds in the account are yours and accumulate from year to year. There are no claims to file Use your debit card or pay your medical bills online Save your receipts for audit purposes Your HSA earns interest Funds have to be in the HSA to use them 6
HSA Eligible Expenses For an expense to be eligible you have to be covered by an HDHP + have an HSA established (not necessarily funded) HSA eligible expenses include vision, dental, as well as HDHP covered expenses Out-of-pocket expenses for spouse + dependent children even if they are on a different medical plan 7
What can I contribute? HSA Annual Contribution Limits Employee Only Family Coverage (Employee + one other person) MCHCP Annual Contribution Employee Potential Maximum Contribution IRS Allowable Maximum Contribution 2013 2014 2013 2014 $300 $300 $600 $600 $2,950 $3,000 $5,850 $5,950 $3,250 $3,300 $6,450 $6,550 If you and your spouse are covered by a family HDHP and are both age 55 or older, each of you can make a $1,000 catch-up contribution. 8
Contributing to my HSA Payroll deduction (Automatic Withdrawal) Provides immediate tax benefit Lowers wage amount before FICA and other State and Federal Taxes are figured Individual contribution Provides tax time benefit Individual will deduct their contribution on their tax return. Contributions can be made anytime via a branch, by mail, or online banking IRA Rollover IRS allows a one-time rollover up to the contribution limit from an IRA to a HSA 9
Previous Year Contribution* Previous year contributions can be made up to the tax filing due date (usually April 15) Indicate the tax year and send directly to: Central Bank Attn: HSA PO Box 657 Jefferson City, MO 65102 *Previous year contributions can only be made by those that were covered by a Qualified HDHP and had an open HSA 10
It s your money Even if you change jobs or no longer have a qualified HDHP the funds are yours to be used for eligible out-of-pocket expenses for you and your family tax-free. 11
Opening your Central Bank HSA Online at mohsa.centralbank.net Two accounts are opened: Checking account for easy access to the funds Certificate of deposit that earns interest The money automatically sweeps between the two accounts. The IRS requires HSA s to be individual accounts. Can designate an authorized signer Required to designate at least one beneficiary 12
mohsa.centralbank.net Open your HSA Open a MyChoice Checking with direct deposit and receive $50 Learn about your HSA & MCHCP Learn how to manage your HSA List of eligible expenses Frequently Asked Questions 13
Using your Central Bank HSA Access your funds easily Mobile Banking CheckPlus Debit Card Online Banking BillPay Funds Transfer Checks may be purchased (not usually necessary) Reimburse yourself for incurred eligible expenses Transfer funds between your checking account and your HSA through Online Banking* Withdrawal cash at an ATM Write yourself a check *External Transfer set-up is required for non-central Bank accounts 14
Manage your Central Bank HSA Online Banking 18 months of activity estatement 7 years worth of history Mobile Banking at your fingertips 15
Online Banking 16
Online Banking-Account Activity 17
estatements Learn how to read your statement by going to mohsa.centralbank.net and clicking on the Managing Your HSA tab. 18
Alerts through Online Banking 19
Investing your HSA funds Your HSA funds are always earning you interest. Primary account earns interest Higher rate certificate of deposit Self directed investment with our registered representatives 20
Your Central Bank HSA Totally FREE to state employees No maintenance fees No annual fees No minimum balance requirements Extraordinary events may cause fees Overdraft or returned checks will incur a $28 fee Stop payment $27 fee Printed Checks (not required) fee depends on style and quantity Normal commissions will apply should you choose to invest HSA funds through InvestorServices 21
Central Bank s HSA Reporting In January you will receive an annual HSA statement (5498-SA) You will also receive a 1099-SA, reporting the total amount of distributions from your HSA These forms along with the W-2 are used in filing Form 8889 with your 1040 22
HSA Overview Your contributions Tax Deductible Funds growth Tax Deferred Disbursements Tax Free when used for eligible expenses. Funds rollover year after year. After age 65 Funds can still be withdrawn for eligible expenses tax free, including Medicare Premiums. Funds can be withdrawn for any reason without penalty Will be taxed at your normal tax rate. (Similar to an IRA or retirement plan) HSA is your money even if you change jobs or are no longer covered by a qualified HDHP 23
Who to Contact MCHCP Insurance Company Central Bank HSA Eligibility/Enrollment Premiums Change of address Name change General benefit questions Review claims Review deductible Review explanation of benefits Locate a provider Order ID card Questions about your HSA Qualified eligible expenses Investment assistance 800-487-0771 www.mchcp.org mymchcp UMR: 888-200-1167 ESI: 800-797-5754 mohsa.centralbank.net Loriel_Dulle@centralbank.net 877-554-5535 573-634-1243 24