Member FDIC. Health Savings Accounts

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1 Health Savings Accounts

2 Who Is First American Bank Strategic Focus For over 40 years, we have built our business one satisfied customer at a time based on the philosophy that the needs of our customers come first. Best of both worlds Big bank financial services with the personal attention only a smaller bank can provide. Size More than $3.7 billion in assets. Largest privately-held bank in Illinois, with 50 branches throughout Illinois and Florida $90 million in our HSA portfolio with over 40,000 accounts nationwide Ownership Privately held financial institution

3 Our HSA Department Team: Mitch Rosenbloom, HSA Account Manager Bradley Huff, HSA Account Executive Dedicated HSA Support Group: 100+ personal bankers and managers throughout our 50 branches

4 What Is An HSA & Why Choose First American Bank? An HSA is a tax-advantaged savings account that belongs to you. It is always paired with a qualified high-deductible health plan (HDHP). First American Bank s standard HSA comes with: No Set-Up Fee No Monthly Service Fee with estatements 1 No Minimum Balance Competitive Interest Rates FDIC Insured 1- $3.95 monthly fee will be charged if you elect to receive paper statements. The fee will be waived if you elect to receive e-statements only or a combined minimum average daily balance of $2,000 is maintained between the checking portion of the HSA and an associated checking, savings, or money market account. Member FDIC

5 HSA Comparison High-deductible (HDHP) insurance protects you from high medical bills. HDHP generally costs less than traditional coverage; money saved on premium can be put into HSA. HDHP paired with HSA provide you tax-advantaged savings vehicle and flexibility to manage your healthcare costs!

6 HSA Benefits? Triple-Tax Savings Contributions are tax-deductible. HSA funds earn interest and grow tax-free. Withdrawals from your HSA when paying for qualified medical, dental, or vision expenses are tax-free! The Money Is Yours HSA money is yours You own the account and retain ownership of the contributions even if you change jobs or healthcare coverage. Funds roll over year-after-year use it or keep it At age 65, your HSA savings can be used for non-medical expenses without penalty. Income tax will apply. Please consult with a tax advisor regarding your personal tax filing strategy and HSA contribution benefits/deductibility. Member FDIC

7 HSA Eligibility & Contribution Limits To be eligible and qualify for an HSA, you must meet the following: You are covered under a High-Deductible Health Plan on the 1 st day of the month You are NOT covered under another type of health plan other than HDHP You are NOT enrolled in Medicare You are NOT claimed as a dependent on another individual s tax return What is the maximum I can contribute to my HSA? 2017 Limits Individual Health Insurance Plan Type - $3,400 Family Health Insurance Plan Type - $6,750 Catch-Up Contribution (Must be 55 or older to Qualify) - $1, Limits Individual Health Insurance Plan Type - $3,450 Family Health Insurance Plan Type - $6,900 Catch-Up Contribution (Must be 55 or older to Qualify) - $1,000

8 HSA Distribution Rules HSA distributions for qualified medical expenses cover the following individuals: You, the Account Owner (principal individual covered by a HDHP) Your Spouse (even if they are not covered by the HDHP) Any individual you claim as your Dependent listed within your joint or individually filed Tax Return (even if they are not covered by your HDHP) You can pay for a wide range of IRS-qualified medical expenses with your HSA, including many not typically covered by a health insurance plan. This includes deductibles, co-insurance, prescription medication, dental and vision care, and more. For a complete listing of IRS-qualified medical expenses please visit or Member FDIC

9 HSA Contributions What is the maximum I can contribute to my HSA? 2017 Limits Individual - $3,400 Family - $6,750 Catch-up Contribution - $1, Limits Individual - $3,450 Family - $6,900 Catch-up Contribution - $1,000

10 HSA Contributions & the TRUE Tax Savings Over Time (Using 28% tax rate as an example) This is an illustration. Please consult with your individual tax advisor regarding your personal tax filing strategy and HSA contribution benefits/deductibility. Member FDIC

11 What Can My HSA Savings Be Used For? Examples of qualified expenses: Acupuncture Ambulance Annual Physical Exam Bandages Chiropractor Contact Lenses Dental treatment Diagnostic Services Eyeglasses Gynecologist Hospital Services Laboratory Fees Nursing Services Obstetrician Optometrist Orthodontist Pediatrician Podiatrist Prenatal Care Prescription Medication Psychiatrist Psychoanalyst Psychologist Specialists Surgery Therapy Vaccines Vision Correction Surgery Weight Loss Programs Wheelchair X-Rays For a complete list, go to Publication 502

12 5 Examples You Didn t Know Your HSA Could Be Used For Cover Dental and Vision Expenses Pay for Transportation Ambulance bills Make You Money Pay for Prescriptions Cover Non-medical Therapeutic Charges Counseling, acupuncture, and chiropractic

13 Learning About The Benefits Educational videos and materials are available online via our website How to maximize the benefits of your HSA account: How To Catch Up With Rising Healthcare Expenses (Video) Creative Ways To Use An HSA (Video) Why We Love This Piggy (Video)

14 Enrollment Process Opening a New Health Savings Account Complete an Online Application via First American Bank s website Applications must be completed within 30 minutes to avoid timing out. Applicants will receive their account number upon successful completion of the application. The account number is an 11-digit number leading with 51********* and will be displayed on the Confirmation page of the online application. Applicants must provide their account number to their Human Resources manager to ensure funding of their account. Debit Card / Checks MasterCard Debit Cards (optional) are ordered once the account has received an Initial Contribution. Cards will be delivered within 7-14 business days after the initial contribution and are mailed discreetly in a blank white envelope. (please do not discard as junk mail). Checks, if requested, will be delivered separately and ordered after the initial contribution is made into the account. Member FDIC

15 Account Options & Features Member FDIC

16 Account Options & Features Health Savings Account HSA PLUS Account Monthly Fee $0 * $4.95** Debit Card(s) Free Free Online Banking/Bill Payment Free Free estatements Free Free Pays Interest Yes Yes, on funds in the checking portion Investment Option No Yes Minimum Deposit Required No No *A $3.95 monthly fee will be charged if the customer elects to receive a paper statement. The fee will be waived if; 1) the customer elects to receive electronic statements only; or 2) a combined minimum average daily balance of $2,000 is maintained between the checking portion of the Health Savings Account and an associated checking, savings or money market account. **$4.95 monthly investment fee will apply. Investors should carefully read the Fund prospectus, which includes information on the Fund's investment objectives, risk, as well as charges and expenses along with other information before investing or sending money. Funds in the investment portion of your HSA PLUS account are not FDIC insured, May Lose Value and are Not Bank Guaranteed. Neither First American Bank nor its subsidiaries (collectively "First American Bank") are registered investment advisors nor is First American Bank acting in the capacity of a registered investment advisor with respect to the offering of HSA investment options. Participation in the investment options is voluntary. Under no circumstances is First American Bank offering any of the HSA investment options and First American Bank makes no representations with respect to the investment options offered. First American Bank disclaims any and all liability, contingent or otherwise, for the performance of the investment options. Please see your financial advisor for personal investment advice. Member FDIC

17 Existing HSA Transfer Transferring an existing HSA from another financial institution to First American Bank is easy! Simply complete the HSA Request for Transfer Form. Once completed, return the form in one of the following three ways: Fax: (847) Attn: HSA Department Mail: First American Bank Attn: HSA Department P.O. Box 0794, Elk Grove Village, IL (e-signatures are not acceptable)

18 HSA PLUS Information Member FDIC

19 Account Options & Features Health Savings PLUS Account The Health Savings PLUS account is composed of 2 parts: Checking Portion - This is an interest-bearing account that works just like a traditional checking account - you can write checks, make deposits, use your debit card. Funds in this portion of the account are FDIC insured. Investment Portion - You can invest in a variety of nationally recognized mutual funds. Funds in the investment portion are not FDIC insured, may lose value and are not bank guaranteed. In order to transfer funds into the Investment Account, you need to have saved a minimum $2,000 balance in the Checking Portion of your Health Savings PLUS account. Funds in the investment portion of your Health Savings PLUS account are not FDIC Insured, May Lose Value and are Not Bank Guaranteed. Member FDIC

20 How To Use Online Banking These features are FREE for all HSA and HSA PLUS account holders: Check Account Balances Transaction Research View Statements Online (up to 15 months) Free Online Bill Payment (Reimbursement tool) Get answers to banking questions via secure messaging

21 A Practical Example: Member FDIC

22 What Do I Have To Pay At The Time Of My Visit? In general, you pay nothing during your visit.

23 Who Receives The Bill? The insurance carrier receives the bill and applies the negotiated network discount That amount is also applied to your deductible.

24 Insurance Carrier Sends An Explanation Of Benefits (EOB) The insurance carrier sends an EOB to you and your doctor

25 How Is The Doctor Paid? Pay using your HSA Mastercard Debit Card, a Check or Online Bill Pay.

26 How Do I Reimburse Myself For Out of Pocket Costs? Reimburse yourself for qualified medical expenses using the following methods: Send yourself an online bill payment Write a check from your HSA account

27 What Happens If I Have Money Left Over? Money left in your account continues to roll over year-afteryear. This allows you to accumulate a nest egg for future medical expenses, tax-free. Once you reach age 65 your funds can be withdrawn at any time and are only subject to ordinary income tax. However, you may avoid any tax by continuing to use the funds for qualified medical expenses.

28 Helpful Information / Contact Information Bradley Huff HSA Account Executive First American Bank 1650 Louis Avenue Elk Grove Village, IL (312) Voice & Fax Bhuff@firstambank.com Mitch Rosenbloom HSA Manager First American Bank 1650 Louis Avenue Elk Grove Village, IL (847) Voice & Fax MRosenbloom@firstambank.com Dedicated HSA Toll Free Call Center (866) HSA Department Fax (847) Corporate P.O. Box First American Bank P.O. Box 0794 Elk Grove Village, IL Corporate Headquarters: First American Bank 1650 Louis Avenue Elk Grove Village, IL (847)

29 Any Questions? Member FDIC