Fifth Third Bank s Health Savings Account Program. presented by Eric Clarke

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1 Fifth Third Bank s Health Savings Account Program presented by Eric Clarke

2 What is an Health Savings Account? An HSA is an account that allows you to save and pay for current and future health care expenses on a tax-free basis. With the HSA, you contribute money on a tax-free basis through payroll deductions or through other methods if you choose. The IRS requires you to participate in a qualifying high-deductible medical plan in order for you or your employer to contribute to an HSA. 2

3 HSA Eligibility You are enrolled in a high-deductible health plan (HDHP) You aren't currently enrolled in Medicare or Tricare You can't be claimed as a dependent on someone else s 2016 tax return You are not covered by a FSA (Flexible Spending Account) 3

4 Triple Tax Advantage Funds go in tax-free when you contribute through payroll deductions Funds grow tax-free as your account balance grows Funds come out tax-free when used for qualified health expenses 20% IRS penalty if taken out before age 65, and used on non-qualified medical expenses, plus applicable taxes 4

5 Annual Contribution Limits Set by the IRS Coverage Type Maximum Annual Contribution 2017 Individual $3,400 Family $6,750 Catch-Up over 55 $1,000 Beginning at age 55, until you enroll in Medicare, you can make catch-up contributions of $1, per year Contributions may be made until the tax deadline of the next calendar year 5

6 Things You May Not Know about HSAs 1. Unused HSA funds roll over from year to year 2. If you leave your current employer, your HSA follows you your funds are not lost 3. Your HSA is an inheritable account 4. HSAs can be used to pay Medicare premiums, COBRA premiums and fund long-term care insurance 5. You can save receipts for medical expenses now and pay yourself back later; even in retirement 6

7 Things You May Not Know about Fifth Third s Health Savings Account Program Fifth Third HSA Mobile App 53hsa.com has a wide assortment of forms, videos, tools & calculators available for you You have a dedicated support call center available Monday Friday, 7:00 a.m. 10:00 p.m., Saturday, 8:30 a.m. 5:00 p.m. Each Fifth Third HSA account holder has their own customized Consumer Portal. 7

8 The Four Kinds of HSA Account Holders Unengaged Saver Spender Investor 8

9 2016 Year-End HSA Market Statistics & Trends Executive Summary Average total balance =$14,035 / Average annualized return 11.3% over last three years 9

10 CNNMoney (New York) First published December 30,

11 Accessing the Investment Portal Click on Manage Investments

12 Message Center Stock Market at-a-glance Account Balance Rate of Return YTD sweep from cash account Pie chart shows election by % Rate of Return Analytics

13 Fifth Third Investment Fees See individual Prospectus for fees related to each Mutual Fund available through the Fifth Third Bank HSA Investment Options A balance of $2,000 in the HSA Cash Account is required before investing in mutual funds The $2.00 Monthly Participation fee An Investment Administration Fee totaling 10 basis points annually will be assessed. Quarterly 5 basis points or 0.05% of the total average investment account balance will be applied as a fee to the HSA Cash Account at the end of each calendar quarter Are Not FDIC Insured, Offer No Bank Guarantee, May Lose Value, Are Not Insured by any Federal Government Agency, Are Not A Deposit

14 Fifth Third Investment Basics Any investments made in money market funds and/or mutual funds are not FDIC insured, are not guaranteed by Fifth Third Bank and may lose value. You invest at your own risk. To activate your Investment Account: Opt into the Investment Account Enter the Cash Account Minimum Threshold Select your Investment Allocations If you do not select your investment allocations, funds transferred to the Investment Account will be held in the money market fund. If funds need to be moved from your Investment Account to your Cash Account for any reason, your investments will liquidate pro rata and the funds will be distributed from your Investment Account to your Cash Account. Trades require three (3) business days to process

15 Fifth Third Investment Basics Your HSA is made up of two separate accounts: a Cash Account, and an Investment Account. Contributions made into your HSA are deposited into the Cash Account. When the balance of your Cash Account exceeds the Cash Account Minimum Threshold, funds in excess of that amount will be swept into the Investment Account if you opted into the Investment Account Debit cards will only access the funds available in your HSA Cash Account. Check and online bill payment requests can access the entire HSA balance which includes the Cash Account and Investment Account. The minimum amount of money that can be moved automatically from your Cash Account to your Investment Account or your Investment Account to your Cash Account is $100. You have exclusive responsibility for and control over the investment of the assets in your Investment Account.

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17 In conclusion and action steps.. 1. The money you contribute in your HSA reduces your taxable income 2. Your money grows tax free 3. Withdrawals for qualified medical expenses are tax free 4. Your Health Savings Account is portable 5. There is no use it or lose it requirement for an Health Savings Account 6. Utilize the resources at 53hsa.com and the Employee Support Center for all your needs 7. Update your beneficiary information 8. Download the mobile app HSA Support Center Monday through Friday, 7 a.m. to 10 p.m., ET Saturday, 8:30 a.m. to 5 p.m., ET 2014 Fifth Third Bank 17

18 Thank you for you time today!