Health savings account (HSA) user guide

Transcription

1 Thank yu fr chsing Optum Bank. Health savings accunt (HSA) user guide Investments are nt FDIC-insured, are nt guaranteed by Optum Bank, and may lse value. Health savings accunts (HSAs) are individual accunts ffered r administered by Optum Bank, Member FDIC, and are subject t eligibility and restrictins, including but nt limited t restrictins n distributins fr qualified medical expenses set frth in sectin 213(d) f the Internal Revenue Cde. State taxes may apply. Fees may reduce earnings n accunt. This cmmunicatin is nt intended as legal r tax advice. Please cntact a cmpetent legal r tax prfessinal fr persnal advice n eligibility, tax treatment and restrictins. Federal and state laws and regulatins are subject t change. Hypthetical examples used thrughut this guide are fr illustrative purpses nly. They are presented strictly fr educatinal purpses and d nt reflect an actual plan design r persnal situatin. All events, persns and results described are entirely fictitius, and amunts will vary depending n yur unique circumstances. Any resemblance t real persns r events, living r dead, is purely cincidental. Current rates are variable and may change at any time. Please cnsult yur benefits administratr r a tax, legal r financial advisr abut yur wn persnal situatin. Welcme ptumbank.cm Optum Circle, Eden Prairie, MN All Optum trademarks and lgs are wned by Optum, Inc. All ther brand r prduct names are trademarks r registered marks f their respective wners. Because we are cntinuusly imprving ur prducts and services, Optum reserves the right t change specificatins withut prir ntice. Optum is an equal pprtunity emplyer Optum Bank, Inc. All rights reserved. PR D Welcme t yur Optum Bank health savings accunt (HSA). Explre all the ways we re making it easy fr yu t get the mst ut f yur HSA. Here, yu ll find ut hw t use yur accunt. Plus, yu can get infrmatin abut ur helpful nline tls and resurces. Lking fr mre details? Visit ptumbank.cm.

2 Table f cntents Getting started with Optum Bank... 3 ptumbank.cm... 3 New accunt hlder checklist... 4 Custmer service... 4 Benefits f HSAs... 5 Eligibility... 6 High-deductible health plans... 6 Opening and funding yur HSA...7 Hw t pen an accunt... 7 Depsiting mney... 7 IRA and HSA rllvers... 7 Wh can cntribute... 8 Cntributin limits... 8 Cntributin tracker... 8 Pr-rated cntributins... 9 Mid-year plan enrllment... 9 Designating a beneficiary... 9 Using yur HSA...10 Qualified medical expenses Other HSA-qualified expenses Spuse, dmestic partner and dependent health care Limited-purpse flexible spending accunt (LPFSA) Optum Bank Health Savings Accunt Debit Mastercard Lst r stlen Debit Mastercard Online banking and bill payment Paying with checks Mbile experience Reimbursing yurself Disbursement limits Managing yur HSA Reprting t the IRS Imprtant frms State tax infrmatin Withdrawals after age 65 r upn becming disabled Optimizing yur HSA...15 Earnings and fees Investment pprtunities Investment tls and infrmatin Maintaining and redeeming investment accunts Optimizing yur HSA There are time-tested principles f saving mney: start early, make regular depsits and set a gal fr every year. The same wisdm applies t HSAs. Nt nly will yur depsits grw, but yur tax savings will, t. Learn in this sectin hw yu can start ptimizing yur HSA. And remember: Every dllar yu put int yur HSA up t the cntributin limit is federal incme-tax-free. Earnings and fees Yur HSA may earn interest at tiered rates. Interest rates and annual percentage yields (APYs) vary and are subject t change at any time. Fees may reduce earnings n accunt. T find ut yur current interest rate, lg in t yur accunt at ptumbank.cm r myuhc.cm. Yur interest rate can be fund n yur mnthly statement. Accunts are subject t a mnthly maintenance fee t cver use f the Optum Bank HSA Debit Mastercard and nline bill payment. If yu have a health plan and an HSA thrugh wrk, yur emplyer may cver the cst f mnthly fees; check with yur emplyer t find ut its plicy. Yu may als refer t the fee schedule that is included with yur HSA welcme kit. Investment pprtunities Once yur depsit accunt reaches a designated value, knwn as the investment threshld, yu may, if yu chse, set up a separate investment accunt t invest a prtin f yur savings in mutual funds. Guidelines fr transferring mney frm yur depsit accunt int an investment accunt include: Yu must retain at least the minimum investment threshld balance in yur HSA depsit accunt at the time f a transfer. Funds must be invested in increments f $100 r mre. Yu can make trades nline r by phne with ur interactive vice respnse (IVR) system. Depsit and investment accunt balances and transactins are viewable nline at ptumbank.cm. A mnthly investment fee may apply. T view the standard list f mutual fund investments, visit ptumbank.cm. Yur emplyer may ffer different investments thrugh its benefits plan; check with yur benefits administratr t find ut mre. Investment tls and infrmatin Links frm ptumbank.cm prvide yu with investment infrmatin and tls, including: Fund prspectuses Mrningstar infrmatin fr each mutual fund Prspectus summaries, past perfrmance and risk measures fr each fund Persnal rate f return infrmatin Maintaining and redeeming investment accunts If yu chse t invest, yu will have the ptin t autmatically sweep cntributins t yur accunt that exceed the investment threshld int yur investment accunt. Yu will chse hw investments are allcated when yu set up yur investment accunt, and yu may change yur allcatins with tls available thrugh ptumbank.cm. Payments fr qualified medical expenses can nly be made frm yur depsit (r savings) accunt. If yu want t use mney in yur investment accunt t pay fr qualified medical expenses, yu must first liquidate investments and transfer funds int yur depsit accunt. Yu can d this nline at ptumbank.cm. See the Optum Bank Custdial and Depsit Agreement fr mre infrmatin n liquidatin f investments. Investments are nt FDIC-insured, are nt guaranteed by Optum Bank, and may lse value. 2 15

3 Imprtant frms Fr tax purpses, there are three imprtant frms. Yu can lg in t yur accunt and find yur tax frms in the Statements sectin f ur website at ptumbank.cm: IRS Frm 1099-SA This frm prvides yu with the ttal distributins that were made frm yur HSA. Yu will receive a separate 1099-SA fr each type f distributin yu had in that tax year. The five types f distributins are: nrmal, excess cntributin remval, death, disability and prhibited transactin. If yu did nt have distributins during the tax year, yu will nt receive a IRS Frm 5498-SA This frm prvides yu with the cntributins that yu made t yur HSA in a particular tax year. Accunt hlders have the right t make cntributins t their HSA fr a tax year until April 15 f the fllwing year. IRS Frm 8889 This is the HSA cntributin frm fr yu t cmplete and attach t yur IRS 1040 Frm t reprt year-t-date cntributins and distributins frm yur HSA. State tax infrmatin While HSAs were created by the federal gvernment, states can chse t fllw the federal tax treatment guidelines r establish their wn. Eligible HSA cntributins are nt taxed by mst states, but they are taxed in Alabama, Califrnia and New Jersey. Please cnsult yur tax advisr r state department f revenue fr mre infrmatin. Withdrawals after age 65 r upn becming disabled After yu turn 65 r becme entitled t Medicare, yu may withdraw mney frm yur HSA fr nnmedical purpses withut penalty. The withdrawal is treated as retirement incme and is subject t nrmal incme tax. The same hlds true if yu becme disabled befre age 65: yu are nt liable fr the 20 percent penalty and the withdrawals are treated as incme. FAQs What if I am n lnger cvered by an HSA-qualifying high deductible health plan? Then yu cannt cntinue t cntribute t yur HSA, but yu can use yur tax-free HSA funds t pay fr qualified medical expenses fr as lng as there is mney in the accunt. In shrt, the mney in yur HSA is yurs t keep. Getting started with Optum Bank, Member FDIC Cnsidering an HSA? It can be a great part f planning ahead fr the future. If yu re enrlled in a qualifying high-deductible health plan (HDHP), yur HSA can help yu and yur family plan, save and pay fr health care. Becming familiar with hw yur HSA wrks is key t getting the mst ut f it. If yu re a new accunt hlder, yu may want t explre this guide t help familiarize yurself with yur HSA. Then, file this guide with yur banking infrmatin and return t it when yu need, like during benefits enrllment perid r tax seasn. Manage yur HSA nline at ptumbank.cm. Make depsits. Dwnlad accunt frms. Check mnthly statements. Manage yur investment activity. Update yur address r change yur mailing address. Pay bills t physicians, dentists r ther health care prviders. Reimburse yurself fr qualified medical expenses that yu paid fr ut-f-pcket. Use the cntributin tracker t see hw much yu ve cntributed t yur HSA year-t-date and hw much mre can be cntributed accrding t yur plan cverage (individual r family). Explre nline resurces t help yu maximize yur HSA benefits. Find infrmatin n taxes. Check ut HSA calculatrs. Explre infrmatin n managing yur accunt. Get infrmatin abut high-deductible health plans. Use the Health Savings Checkup t help plan fr retirement. Decide Are yu prepared fr yur future? If yu haven t thught abut what health care will cst when yu retire, take a few minutes tday t find ut. Use the Health Savings Checkup tl t see yur estimated health care csts during retirement. It s just fur easy steps nline. Lg in t ptumbank.cm r myuhc.cm, and lk fr the Health Savings Checkup icn. Investments are nt FDIC-insured, are nt guaranteed by Optum Bank, and may lse value. Investments are nt FDIC-insured, are nt guaranteed by Optum Bank, and may lse value. 14 3

4 New accunt hlder checklist Use this list t make sure yu ve taken all the first steps t pening and funding yur HSA. Open yur accunt. Recrd yur accunt number and file it in a safe place. Register nline at ptumbank.cm fr nline banking. Add yur banking infrmatin t depsit funds int yur HSA r t get distributins ut f yur HSA. Designate a beneficiary fr yur accunt. Lg int yur accunt and chse Manage yur prfile t d this. Sign up fr payrll deductin int yur HSA, if it s available at yur place f wrk. Start saving s yu can pay fr, r be reimbursed fr, qualified medical expenses. Activate yur Optum Bank health savings accunt Debit Mastercard. Review yur accunt fee schedule and privacy ntice included in yur welcme kit. Becme familiar with qualified medical expenses. Review hw t use ptumbank.cm t pay bills nline r be reimbursed fr qualified expenses paid ut-f-pcket. Save all receipts fr qualified medical expenses. Questins? Call custmer service at the phne number lcated n the back f yur debit card. Assistance fr mst freign-language speakers is als available. If yu call befre r after business hurs, ur phne service includes many autmated ptins, including: Instructins fr transferring funds by wire Infrmatin abut managing investments Accunt balance and the last five transactins Directins t activate yur debit card, r reprt a lst r stlen card Please nte that custmer service representatives d nt have access t infrmatin r data abut yur HSA-qualifying health plan r claims. Please cntact yur health plan fr that infrmatin. Managing yur HSA Gd news. With an HSA, yu re in charge f yur accunt nt yur emplyer, nt yur health insurance cmpany, nt yur bank. That means, yu get the benefit f pre-tax savings. Als, there s n use it r lse it rule with HSAs the mney is always yurs t keep. In this sectin, get tips fr managing yur HSA, s yu can get the mst ut f it. Reprting t the IRS Yu are respnsible fr saving receipts and keeping track f all expenses paid frm yur HSA funds, in case yu need t prve t the IRS that distributins frm the HSA were fr qualified medical expenses. Strengthen yur savings even mre. Yur health savings accunt (HSA) helps guard yu frm ut-f-pcket csts. But yu have t stay smart with yur savings t get the mst ut f yur mney. Explre ur nline tls and resurces that can help yu maximize yur HSA. At ptumbank.cm yu can sign up fr HSA webinars, take the health savings checkup, access HSA calculatrs, watch vides and mre. Yu can dwnlad an expense tracking wrksheet frm ptumbank.cm t help yu maintain yur recrds. Or use yur wn mney management sftware. If yu use yur HSA funds t pay fr gds r services that aren t qualified medical expenses, yu are respnsible fr reprting that t the IRS, paying incme taxes n the amunt and pssibly an additinal 20 percent tax penalty. Yu will need t cnsult yur tax advisr. Fr detailed infrmatin abut tax reprting with yur HSA, visit the U.S. Internal Revenue Service website at Investments are nt FDIC-insured, are nt guaranteed by Optum Bank, and may lse value. 4 13

5 Lst r stlen Debit Mastercard If yur card is lst r stlen, yu can call Optum Bank any time f the day r night. Our phne system is set up t take this infrmatin even after business hurs. We will reissue yu a new card free f charge. It shuld arrive by mail within ten days f reprting a lst r stlen card. Online banking and bill payment Optumbank.cm ffers yu the cnvenience f nline banking. Yu can view recent accunt activity, link t yur investment accunt, if yu have ne, and view and dwnlad yur mnthly statements. Yu can als pay bills fr qualified medical expenses directly t yur dctr r ther health care prviders. With nline bill payment, yu can set up the names and addresses f yur prviders t make future payments a snap. At time f applicatin, yu agree t receive electrnic mnthly statements. Yu can, if yu chse, request t have mnthly statements mailed t yur hme. Yu can pt ut f electrnic statements by cmpleting and returning a statement delivery change request frm, available at ptumbank.cm. Paying with checks Yu may als request HSA checks t use when paying yur medical bills. Yu can rder them nline when yu lg int yur accunt. Mbile experience Yu can easily access yur Optum Bank HSA with yur smart phne r tablet and manage yur accunt n the g. The easy t read screen allws yu t: View accunt balances and transactins Make a cntributin t yur HSA Pay a bill Reimbursing yurself Uplad receipts Reimburse yurself and mre! Yu may chse t pay fr sme r all f yur medical expenses ut-f-pcket, saving receipts t track yur qualified expenditures. Then, at sme pint in the future, yu may reimburse yurself fr thse expenses. G t ptumbank.cm r myuhc.cm, lg in and select Reimburse Yurself. Yu ll be able t chse t set up an electrnic funds transfer (EFT) frm Optum Bank t yur savings r checking accunt at anther bank. Or, yu can ask us t send yu a check by mail. Yu may als use paper checks, if yu have purchased them, r withdraw mney with yur debit card frm an ATM t reimburse yurself. When yu reimburse yurself is cmpletely up t yu. It can be weeks, mnths r even years after yu ve paid fr the qualified medical expenses. Yu must, hwever, have retained the receipts fr the qualified medical expenses in the event the IRS inquires, and the expenses must have been incurred after the date when yu established yur HSA. Disbursement limits Optum Bank limits yur ATM withdrawals t $300 within a 24-hur perid. Things t keep in mind when paying yur medical bills: If paying a bill with yur debit card, with nline bill payment r by check, yu must have sufficient funds available in yur accunt t cver the cst. Yu can wait until yur balance grws and reimburse yurself fr csts yu paid ut f pcket. (Remember: save yur receipts.) The true cst f yur medical expense may be discunted if yur dctr is in yur health plan s netwrk. It s best t wait until after the claim is filed and the insurance cmpany ntifies yu f hw much yu are respnsible fr befre using yur HSA funds t pay. FAQs What if my dctr s ffice isn t familiar with HSAs and highdeductible health plans? When yu visit yur dctr, be prepared t share infrmatin abut yur insurance plan with the persn wh verifies yur insurance infrmatin and with yur dctr. Mst imprtantly, let them knw yu dn t have t pay a cpayment. It s als imprtant t talk t yur dctr abut yur plan and let him r her knw that yu re thinking wisely abut the care yu receive and hw much yu spend n it. Benefits f HSAs HSAs ffer pre-tax savings:* The mney yu put in is tax deductible, up t the IRS established limits. Yur savings grw tax-free. Any mney yu take ut t pay fr qualified medical expenses is incme-tax-free. An HSA is like n ther savings vehicle nw available t taxpayers. The mney in yur HSA is always yurs. There is n use it r lse it rule. All amunts in yur HSA are fully vested, and unspent balances in accunts remain there until spent. Yur accunt is prtable, t, meaning yur mney stays put even if yu: Change jbs Change medical cverage Becme unemplyed Mve t anther state Get married r divrced With an HSA, yu are in charge. Yu decide: Hw much yu will cntribute t yur accunt, up t the allwable annual IRS limit When yu want t use yur savings t pay fr, r be reimbursed fr, qualified medical expenses What bank will administer yur accunt Whether r nt t invest sme f yur savings in mutual funds fr greater ptential lng-term grwth Dn t frget: Keep all medical receipts. Yu can save paper cpies r stre them nline. The cnvenient nline receipt vault allws yu t uplad images f receipts fr qualified medical expenses and then stre them within yur HSA. Track yur health care expenses with the expense tracker wrksheet n ptumbank.cm r yur wn mney management sftware. Retain all tax dcuments yu receive frm Optum Bank fr filing yur tax returns and maintaining yur recrds. *State tax treatment f HSAs varies. G t ptumbank.cm r cnsult yur state s department f revenue t find ut mre. Investments are nt FDIC-insured, are nt guaranteed by Optum Bank, and may lse value. Investments are nt FDIC-insured, are nt guaranteed by Optum Bank, and may lse value. 12 5

6 Eligibility If yu have a qualifying high-deductible health plan (HDHP) n the first day f any mnth, yu may be eligible t cntribute t an HSA if: Yu are nt cvered by any ther nn-hdhp health plan, such as a spuse s plan, that prvides any benefits cvered by yur HDHP plan. Exceptins may include permissible cverage, such as specific injury insurance r accident, disability, dental, visin r lng-term care insurance. Yu are nt enrlled in Medicare. Yu d nt receive health benefits under TRICARE. Yu have nt received Veterans Administratin (VA) benefits within the past three mnths, except fr preventive care. If yu are a veteran with a disability rating frm the VA, this exclusin des nt apply. Yu cannt be claimed as a dependent n anther persn s tax return. Yu are nt cvered by a general purpse health care flexible spending arrangement (FSA) r health reimbursement arrangement (HRA). Alternative plan designs, such as a limited-purpse FSA r HRA, might be permitted. If yur circumstances change and yu are n lnger eligible t cntribute t an HSA, yu can keep the accunt as lng as yu like and use it t pay fr qualified medical expenses incme-tax-free. Other IRS restrictins and exceptins may als apply. We recmmend that yu cnsult a tax, legal r financial advisr t discuss yur persnal circumstances. High-deductible health plans In rder t pen and cntribute t an HSA, yu must have an IRS qualifying high-deductible health plan. The HSA is designed t wrk with yur health plan t prtect yu and yur family. Here s hw a high-deductible plan wrks: Yu are respnsible fr paying yur cvered medical expenses up t the deductible(s) stated in yur health plan. Yur deductible is the maximum amunt that yu must pay tward yur health care befre benefits are paid by yur plan. Mst plans will have different cinsurance levels fr expenses incurred in-netwrk and ut-f-netwrk. Yu can, if yu chse, use HSA funds t pay fr yur ut-f-pcket expenses. Or, yu can reimburse yurself fr thse expenses smetime later. Be careful t save all receipts! Yu are respnsible fr being able t prve, if questined by the IRS, that yu used yur HSA nly fr qualified medical expenses. After yu meet yur annual deductible, yu are respnsible nly fr a prtin f yur medical expenses as utlined in yur medical plan. Remember: Premiums fr high-deductible health plans are ften lwer than premiums fr ther types f nn-highdeductible health plans. Many HSA accunt hlders chse t put their premium savings directly int their HSAs t save fr the future. Spuse, dmestic partner and dependent health care If yu are married, yu and yur spuse may be cvered by different health plans. Yu may have a dmestic partner. If yu have children, they may be cvered under yur plan r yur spuse s plan. Yu may have adult children wh are cvered by yur health plan, as is nw allwed until thse children reach age 26. Family situatins can vary. Generally, cntributin limits t an HSA are determined by the type f cverage individual r family. Even if yur spuse r dependents are nt cvered by yur high-deductible health plan, yu may use yur HSA dllars t pay fr qualified medical expenses fr them. If yu have adult children cvered under yur health plan, yu may nt use yur HSA t pay r reimburse yurself fr their qualified medical expenses if they are nt yur tax dependents. Hwever, thse children may be able t pen their wn HSAs and cntribute up t the limit dictated by the type f health plan they are cvered under individual r family. HSA cntributin guidance fr dmestic partners is different, t. Generally, if dmestic partners are bth cvered by a family health plan and ne is a tax dependent f the ther, the partner carrying the cverage can pen and fund an HSA up t the family cntributin limit and pay the partner s qualified medical expenses frm the accunt incme-tax-free. In anther scenari, dmestic partners may be cvered under a family plan, but neither is a tax dependent f the ther. In that case, each partner may pen an HSA, and each may depsit up t the family cntributin limit. Visit r fr answers t frequently asked questins n these tpics. Cnsult yur tax advisr fr guidance n yur specific situatin. Limited-purpse flexible spending accunt (FSA) Yu are nt eligible t depsit mney int an HSA if yu are depsiting mney int a health care FSA in a tax year. Yu may, hwever, be able t pen what s called a limited-purpse FSA thrugh yur emplyer s benefits plan. A limited-purpse FSA can be used t pay fr eligible dental and visin expenses that yu may have. The use it r lse it rule als applies t limited-purpse FSAs, s yu shuld estimate yur expenses carefully befre electing hw much t save in such an accunt. Optum Bank Health Savings Accunt Debit Mastercard Yu can use yur debit card fr direct payment at a dctr s ffice, pharmacy r any health care facility that accepts Mastercard. In mst cases, the card can als be used t pay a bill frm a dctr s ffice r health care facility, prvided they accept Mastercard. Yu will receive yur card in the mail seven t ten days after pening an HSA. Be sure t activate yur card s yu can start using it fr yur qualified medical expenses. With yur PIN, yu can use yur debit card t withdraw funds at any ATM displaying the Mastercard brand name.* S, fr example, if yu g t the dctr and pay fr yur services ut f yur wn pcket, yu can then withdraw mney at the ATM t reimburse yurself. If yu wuld like an additinal debit card, yu can lg in t yur accunt at ptumbank.cm r myuhc.cm and rder ne nline. Remember that yur HSA Debit Mastercard acts like any ther debit card and culd incur charges nt made by yu. Prtect yurself against fraudulent charges by rutinely checking yur HSA statement. FAQs What if I use the mney in my HSA fr nnqualified expenses? Any amunts yu use fr purpses ther than t pay fr qualified medical expenses are taxable as incme and subject t an additinal 20 percent IRS tax penalty. This applies t: Medical expenses that are nt cnsidered qualified under federal law, like elective csmetic surgery Other types f health insurance Medicare supplement premiums Expenses that are nt medical- r health-related T redepsit funds that have been used in errr fr nnqualified expenses, cmplete a withdrawal crrectin frm, available at ptumbank.cm. 6 *Optum Bank will charge a $2.50 per transactin fee fr ATM withdrawals. Fees may als be charged by the ATM wner. 11

7 Using yur HSA Yur HSA dllars are available nt nly t yu, but als t yur spuse and eligible dependents, even if they re nt cvered by yur highdeductible health plan. Yu can use yur HSA funds t pay fr qualified medical expenses. Learn mre in this sectin abut what qualifies, hw much yu shuld cntribute as well as hw t reimburse yurself fr ut-f-pcket expenses, and mre. Qualified medical expenses Expenses that qualify fr payment r reimbursement frm yur HSA tax-free are defined by federal regulatin. The fllwing is a shrt list f sme prducts and services in this categry: Dctr ffice visits Prescriptin medicatins Dental care, including extractins and braces Chirpractic and acupuncture services Visin care, including cntact lenses, prescriptin sunglasses, even LASIK surgery Hearing aids (and the batteries, t) The list f qualified medical expenses is defined by the IRS, and it includes a wide range f dental, visin and medical expenses. Yu shuld becme generally familiar with the list and cnsult it as needed t determine if an expense can be paid fr with yur HSA. Fr mre infrmatin abut qualified medical expenses, visit the IRS website at r ptumbank.cm. Other HSA-qualified expenses Generally, yu cannt use yur HSA t pay fr health insurance premiums, but there are exceptins. Yu may use yur HSA t pay fr: Any health plan cverage while receiving federal r state unemplyment benefits Opening and funding yur HSA T start saving in an HSA, yu must first enrll in a qualifying high-deductible health plan (HDHP) and pen an HSA with Optum Bank. The best way t save is t make a plan and stick t it. COBRA cntinuatin cverage after leaving emplyment with a cmpany that ffers health insurance cverage Opening an accunt Eligible lng-term care insurance If yu are pening an Optum Bank HSA at wrk, yur emplyer may arrange t help yu pen an accunt. Please check with yur emplyer t find ut if this is the case. Medicare premiums and ut-f-pcket expenses, including deductibles, cpays and cinsurance fr: Part A (hspital and inpatient services) Part B (physician and utpatient services) Part D (prescriptin drugs) Nte: this des nt include premiums fr a Medicare supplemental plicy, such as Medigap. G t ptumbank.cm and fllw the directins t pen an accunt. Have yur high-deductible health plan infrmatin handy. In bth cases, a welcme kit will be sent t yu within 10 business days f the accunt pening. Yu als have the ptin t access the welcme kit nline. Nte: Open yur HSA as sn as yu re eligible. That way, yu can use yur HSA t pay r reimburse yurself fr qualified medical expenses. Yu cannt use yur HSA t reimburse yurself fr medical expenses yu had befre yur accunt is established. Funding yur accunt Once yur accunt is established, yu will be able t lg in t yur HSA thrugh ptumbank.cm r myuhc.cm and arrange t make a depsit t yur HSA frm anther bank accunt, such as a savings r checking accunt, ne time r n a recurring basis. Yu can mail a check with a cntributin/depsit frm available at ptumbank.cm. Fllw the instructins n the frm. Nte: Funds are nt available until they are psted t yur HSA. 10 IRA and HSA rllvers Yu can make a ne-time distributin frm yur traditinal IRA r Rth IRA t yur HSA. Yu must direct yur IRA trustee t make the distributin directly int yur HSA. The amunt cannt exceed hw much yu are eligible t cntribute t an HSA fr the tax year. Nte: The distributin frm yur IRA is nt included in yur incme, is nt deductible and reduces the amunt that can be cntributed t yur HSA. Yu can rll ver amunts frm Archer medical savings accunts (MSAs) and ther HSAs int an HSA. Yu must rll ver the amunt within 60 days after the date f receipt. Yu can make nly ne rllver cntributin t an HSA during a ne-year perid. Rllvers are nt subject t the annual cntributin limits. Yu can als direct an HSA custdian/ administratr t transfer funds directly int anther HSA. Such a transfer is nt cnsidered a rllver, and there is n limit n the number f such transfers. Yu d nt include the amunt transferred in yur incme fr tax purpses, deduct it as a cntributin r include it as a distributin frm the accunt. Need a Rllver/Transfer Request frm? Visit ptumbank.cm. 7

8 Emplyer cntributins If yur emplyer cntributes t yur HSA, find ut when they will make the first depsit and what schedule it will fllw. If yur emplyer ffers payrll deductin, yu may elect t have an amunt deducted pre-tax frm yur paycheck and depsited directly int yur HSA. This cntributin will be made befre Scial Security, federal and mst state incme taxes are deducted. Wh can cntribute Yu Cntributin limits There are limits, set by law and adjusted annually, fr hw much yu can cntribute tax-free t an HSA in a calendar year. Cntributin limits When yu cntribute mney t yur HSA, it is generally nt taxable. Yu can cntribute by having a certain amunt deducted regularly frm yur paycheck, if yur emplyer ffers this cnvenience. Or, yu can make yur wn depsits and write ff yur allwable HSA cntributin n yur persnal incme tax return as an abve-the-line deductin. Yur emplyer Yur emplyer can als cntribute t yur HSA, and thse funds belng t yu as sn as they are psted, even if yu change jbs r are laid ff. Be sure t subtract yur emplyer s cntributin frm the annual cntributin limits t figure ut hw much yu r thers can depsit. Keep in mind that if yur emplyer cntributes t yur accunt, yur emplyer determines hw ften t cntribute yearly, mnthly r weekly. Check t see what yur emplyer s cntributin schedule will be. Other peple Friends, family members r anyne can cntribute t yur HSA, n yur behalf. If a family member r friend makes a cntributin t yur HSA, yu may deduct the cntributin amunt when filing yur annual incme taxes, just as if yu had depsited the pst-tax cntributin n yur wn. The cntributr shuld write a check payable t yu, the HSA accunt hlder. Simply fill ut a Cntributin/Depsit frm (available at ptumbank.cm). Then, attach the check t the frm and mail it accrding t instructins n the frm. Year Individual cverage Family cverage 2017 $3,400 $6, $3,450 $6,900 Nte: the tax-free cntributin limits include any emplyer cntributins t yur HSA. If yu are 55 r lder, yu can make catch-up cntributins, meaning yu can depsit an additinal $1,000. If yur spuse is als 55 r lder, he r she may establish a separate HSA and make a catch-up cntributin t that accunt. Keep in mind that yu can cntribute up t the maximum allwed fr the year at any time up until the tax-filing deadline (generally April 15) f the fllwing year. Cntributin tracker Even thugh anyne can cntribute t yur HSA, it is up t yu t make sure that yu dn t exceed the IRS HSA cntributin limits. Optum Bank s HSA cntributin tracker is a handy nline tl that can help yu d just that. The cntributin tracker shws hw much yu have cntributed t yur HSA year-t-date, and calculates hw much mre culd be cntributed accrding t yur plan cverage (individual r family). Yu can find the cntributin tracker readily accessible n the HSA Dashbard nce yu lg in t yur accunt. Pr-rated cntributins A jb change r ther life event may lead yu t end yur cverage in an HSA-qualifying health plan at sme time during a nrmal 12-mnth benefits perid. In that case, yu wuld need t calculate a pr-rated cntributin amunt based n yur actual mnths f high-deductible plan cverage. If yur cntributins exceed that amunt, yu can have excess cntributins returned t yu. Yu can dwnlad an Excess Cntributin and Depsit Request frm frm ptumbank.cm. Fr example: Yur emplyer s plan year is Jan. 1 t Dec. 31 (12 mnths). Yu maintain high-deductible health plan cverage fr yur family fr six mnths (January thrugh June). The IRS maximum cntributin limit fr family cverage fr 2018 is $6,900. Yur maximum cntributin wuld be $3,450 [$6,900/12 = $575 (maximum mnthly cntributin); $575 x 6 = $3,450]. If yu are 55 r lder, catch-up cntributins must als be pr-rated using the same frmula. Mid-year plan enrllment If yu enrll in an HSA-qualifying health plan befre the first day f December f any year, yu are eligible t make the entire year s tax-free cntributin t yur HSA. T d s, yu must als cntinue t participate in a high-deductible health plan fr the rest f the year and the entire fllwing year. During this time, yu cannt have ther health care cverage that wuld make yu ineligible t cntribute t an HSA. Designating a beneficiary When yu set up an HSA, it is imprtant that yu als select a beneficiary. This will ensure that yur HSA mney is immediately available t yur beneficiary upn yur death. Yu may select mre than ne beneficiary and assign the prtin f yur accunt that wuld g t each. What if yu dn t select a beneficiary? If yu d nt specify a beneficiary and yu are married, yur HSA becmes yur spuse s HSA. If yu are nt married at the time f yur death, the funds will g t yur estate and the funds may be subject t taxatin. Hw d yu designate yur beneficiary? Lg in t yur HSA and select Manage yur prfile frm the Self Service links. Yu ll find a link t Beneficiary Designatin n the Prfile page. FAQs What if my ttal HSA cntributin fr the year exceeds the IRS limits? Yur excess cntributins are subject t standard incme tax rates plus a 6 percent penalty. Yu can cmplete and mail r fax a withdrawal/distributin frm, available at ptumbank.cm. If yu request a refund, there is n penalty as lng as the distributin is made befre the tax-filing deadline, generally April 15. Earnings n the excess amunt are taxable, but the 6 percent excise tax will nt apply as lng as the excess cntributins and earnings are paid ut befre the tax-filing deadline. What if I have mre than ne HSA? Yu may cntribute t all f them, but the ttal cntributins t yur accunts cannt exceed the annual maximum cntributin limit. Cntributins frm yur emplyer, family members r any ther persn must be included in the ttal. What if I cntributed the maximum annual amunt, but I was nt cvered by an HSA-qualifying health plan fr an entire year? Yu are nly eligible t cntribute t yur HSA fr the time yu were cvered by a high-deductible health plan. Yu can figure that ut by pr-rating yur maximum cntributin fr individual r family cverage fr the part f the year yu were cvered by a high-deductible plan. Yu can arrange t withdraw yur excess cntributin, as described abve. What if my spuse and I are cvered by different health plans? Yur cntributin limits are generally determined by the type f high-deductible health plan yu have single r family. Cnsult a tax advisr regarding yur persnal situatin. Yu can find ut mre by visiting 8 9