Today s Focus: Health Savings Account - Introduction & Benefits May, 2018

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1 Today s Focus: Health Savings Account - Introduction & Benefits May, 2018

2 What is a Health Savings Account? A savings account for your medical expenses, paired with a high-deductible health plan Deposit money into your HSA Save on taxes Pay for qualified medical expenses 2

3 Why should I get an HSA? No tax on deposits, earnings or withdrawals for qualified medical expenses Funds roll over from year to year You control your healthcare dollars You keep the money even if you change jobs or insurance plans Save for retirement 3

4 How does an HSA work? Save Contribute to your HSA. Have the funds automatically withdrawn from your paycheck for deposit into your account before taxes are deducted. This means you pay less in taxes Earn HSA contributions are deposited in an interest-bearing account from which you can withdraw funds at any time Pay Pay for qualified medical expenses for yourself, your spouse or dependents using a debit card, online & mobile banking or a check Grow Any funds you put into your HSA and which are not used during the plan year stay with you, even if you change employers or retire 4

5 Maximize your contributions & savings Annual Contribution Rules 2018: $3,450 for individuals & $6,900 for families Additional Funding Those 55 years of age or higher, but not entitled to Medicare benefits, can fund an additional $1,000/year catch-up contribution Amount of Funding Excess contributions are subject to a 6% excise tax and applies to each tax year the excess contribution remains in the account 5

6 How can you use your HSA? Pay for qualified medical plan deductibles and coinsurance Pay for qualified medical, pharmacy, dental and vision care and services Pay for qualified medical expenses for your spouse or dependents Any money you take out of your HSA for eligible medical expenses is income-tax free 6

7 The EECU HSA Advantage Save more and earn more Product Features No monthly account maintenance fee Competitive savings interest rates paid on balances Toll-free member service Free EECU HSA Debit Mastercard Free full online and mobile account access Free online ACH money transfer availability Free online bill payment and mobile deposit services About EECU EECU is one of the largest credit unions in Texas with over $2 billion in assets Federally insured by NCUA All HSA account-holder support is based in Texas 7

8 How to access your HSA funds? Use your EECU Health Savings Account Debit MasterCard Sign up for online & mobile banking Use HSA checks (optional) Pay for an expense with personal funds and reimburse yourself from your HSA Online & Mobile 8

9 Managing your HSA is easy online View your account 24/7 via desktop computer, tablet or mobile phone Pay health care providers from your HSA Request reimbursement for qualified out of pocket medical expenses Check balance Make contributions View account activity Chat with a member service representative 9

10 We re ready to help you We Make Turnkey Our friendly and knowledgeable member service team is here to help you! Phone: Local: Toll Free: Online & Mobile: 10 chat and secure available 10

11 Thank you! 11

12 Appendix 12

13 Already have an HSA? You can easily request to transfer the balance into your EECU HSA The transfer form needs to be completed, signed and mailed directly to EECU Within 48 hours of receipt, EECU will send a request to transfer the money from your previous HSA custodian It takes an average 4-6 weeks for banks to complete these requests. You may not be able to access the funds being transferred during that time 13

14 Statements and Tax Forms Account Statements: Issued monthly E-statements are available Annual tax documentation: IRS Form 1099-SA Detailing distributions; sent to member and IRS by Jan. 31 IRS Form 5498-SA Detailing contributions; sent to member and IRS by May 31 of following year 14

15 Member Information Resources HSA Product Guide, FAQ & Forms HSA Product Web Page ( 15

16 Additional Resources IRS Publication 969 explains Health Savings Accounts and Other Tax-Favored Health Plans A list of Eligible Medical Expenses can be found in IRS Publication Medical and Dental Expenses For more information consult a tax adviser or your state department of revenue 16