University of Rochester Health Savings Account Tax Information & Investment Options February 2015
HSA Basic Requirements Must be enrolled in the YOUR HSA-Eligible healthcare plan Cannot be covered by any other health insurance (Including any part of Medicare) Cannot participate in a healthcare Flexible Spending Account (Including your spouse) Can have a Limited Flexible Spending Acct. Cannot be claimed as a dependent on someone else s taxes
Features & Benefits Pre-tax Payroll Deduction or Direct Contribution Reimburses Medical, Dental & Vision expenses Account balance carries forward from year-to-year Payroll elections can be changed at any time Account earns interest & investment options are available All earnings are pre-tax
Accountholder Reporting Account statements Free E-Statements available on line Free quarterly paper statements ($.75/month charge for monthly paper statements) IRS reporting Year-end status report 5498-SA (contributions) 1099-SA (distributions)
Year End Account Status Summary
IRS Form 5498 Form 5498 reports all contributions into the account for 2014 including contributions made in 2015 for 2014. Accountholders have until the tax filing deadline to make contributions for the prior year. Any accountholder who makes a contribution in 2015 for 2014 will receive a corrected 5498 in May.
IRS Form 5498
IRS Form 1099-SA Form 1099 reports all the distributions from the account in a lump sum These amounts are not taxable if used for qualified medical expenses. For specific guidance regarding completing your taxes with HSA information; HSA Bank advises that you contact a Tax Professional
IRS Form 1099-SA
IRS Form 8889 The IRS Form 8889 is the form that the accountholder will complete using the 5498 and the 1099-SA. The HSA Bank website has links to Tax Filing Resources, including the IRS website. Please visit the link below for more information: http://www.hsabank.com/hsabank/members/taxinformation
IRS Form 8889
HSA Bank Services/Fees HSA Bank services includes: Initial debit card at account opening (up to 2) Debit card point-of-sale purchase with signature ($2.00 fee for PIN use) Unlimited check transactions Contribution processing Monthly e-statements Tax reporting (year-end status, 1099-SA and 5498-SA) Online account access; online banking transfers Bankline (800-565-3512) balance, transactions inquiries, etc. $7.95 for 50 checks/deposit slips (optional) $10 charge for manual withdrawals (optional)
Investment Information
HSA Investment Options TD Ameritrade Corporate Services Devenir Mutual Fund Platform Interest bearing savings account Default unless accountholder chooses investment options
Self-Directed Investment Option TD Ameritrade Corporate Services* Access to stocks, bonds, & over 11,000 mutual funds Trades are made online or over the phone Transfer funds from your HSA to your Investment account 2 options: Online through internet banking Calling the Client Assistance Center *Note that a per trade fee of $15-$25 applies to investment transactions, based on type of transaction.
Mutual Fund Selection Devenir - Historically high performing Annual fee of $24 Trades are made online Transfer funds from your HSA to your Investment account Online through internet banking or By calling the Client Assistance Center For more information on HSA Bank s Investment Offerings, visit: http://www.hsabank.com/hsabank/members/hsa-investments
Comparison of Investment Programs TD Ameritrade Self-Directed Brokerage Account DEVENIR Mutual Fund Selection Investment Option Access to mutual funds YES YES Pre-selected suite of mutual funds NO YES Access to stocks YES NO Access to bonds YES NO Annual fee NO YES Trading fees YES NO Online trading YES YES Phone trading YES NO Online access to investment resources (prospectus, reports, investment tools) YES YES Online funds transfer capability YES YES
Savings Account Option Interest Bearing Bank Account Accounts are open as an FDIC, Insured bank account through Webster Bank, NA Current interest rate and annual percentage yield information is available on our website, http://www.hsabank.com/excellus or by calling our Client Assistance Center (866) 471-5940 (Excellus specific). Interest Rate and APY are subject to change at our discretion at any time. Fees may reduce earnings.
How to Contribute Who Makes Contributions? How Are They Made? Through your employer Payroll deductions may be an option Online through Internet Banking One-time or recurring from an external account. Checks Transfers or rollovers (MSA, HSA, IRA) Accountholder Third Party Contributions from all sources count toward the annual maximum. Annual IRS Maximum (regardless of deductible) Year Individual Family 2015 $3,350 $6,650 Individuals and/or their spouses, over the age of 55 and not enrolled in Medicare can make an additional $1,000 catch-up contribution annually.
Distribution Options Visa Brand Debit Card Online Transfers HSA Checks Withdrawal Form ($10 fee)
HSA Bank Internet Features
HSA Bank Account Holders Home Page hsabank.com/excellus
Enroll in Internet Banking
HSA Bank Internet Banking Features Online Account Access through Internet Banking Account balance and transaction history (Up to 18 months for convenient tax reporting) View e-statements and cancelled checks Year-to-date account information (Including a breakdown of contributions by source) Ability to download transaction history to Quicken or Microsoft Money Email confirmation of account opening and ongoing activity Online address changes Access to Online Contribution Information
Find Tax Filing Resources under HSA Education tab
Calculation Tools Determine Healthcare User Type Shows you how you can maximize the advantages of an HSA in any stage in life. http://www.hsabank.com/hsa bank/education/is-an-hsaright-for-me
Online Calculation Tools Future Value Calculator Calculates tax savings on contributions and tax-deferred growth as well as the future value of your Health Savings Account http://www.hsabank.com/hsabank/education/hsa-savingscalculator
Account Support Toll Free Bankline (800) 565-3512 24-hour account access via touch tone phone Client Assistance Center (Dedicated Excellus) (866) 471-5940 8am-10pm ET, Monday-Friday Spanish Language Assistance (866) 357-6232 8am-10pm ET, Monday-Friday Internet Banking Demo http://www.hsabank.com/hsabank/accountholders/internet_bankin g.aspx Information on interest rates, banking services, fees and actions to avoid incurring fees http://www.hsabank.com/hsabank/accountholders/rates_fees.aspx