Expanding Further On Health Savings Accounts Member FDIC

Expanding Further On Health Savings Accounts Member FDIC. Choice Benefits is a division of CFG.

Health Savings Accounts What Are They? A Health Savings Account (HSA) is an IRS-approved, triple-tax-favored account used in conjunction with a qualified High-Deductible Health Plan (HDHP).

Health Savings Account Eligibility An individual is eligible to open an HSA if they are: Covered by a Qualified High Deductible Health Plan Not covered under any other health plan other than a HDHP. Not enrolled in Medicare Not claimed as a dependent on another person’s income tax return

Health Savings Account Advantages Tax advantages of an HSA include: • Contributions are tax-deductible - Triple Tax Savings! • Accounts grow tax-deferred • Withdrawals are tax-free when used to pay for eligible medical, dental, and vision out of pocket expenses

Health Savings Account Advantages • Unused funds rollover every year for life. • The owner decides when and how their money is used for eligible medical, dental, and vision expenses. • Can be used for your entire family. • Even when changing jobs or retiring, the HSA funds remain available for use. • Converts to a Traditional IRA at age 65. • If used for non-eligible expenses prior to age 65, a 20% penalty is incurred plus loss of tax savings.

Health Savings Accounts How Do HSA’s Work? Individual $3, 550/year maximum Family $7, 100/year maximum

Health Savings Accounts Contributions may come from: • Your Employer • Your Employee • Your Spouse • Other sources The IRS sets annual contribution limits and adjusts them periodically.

Health Savings Accounts 2020 Limits High Deductible Health Plan Health Savings Account Minimum Deductible • Single: $1, 400 • Family: $2, 800 Maximum Contribution • Single: $3, 550 • Family: $7, 100 • Catch-Up (Age 55+): $1, 000

Health Savings Accounts Distributions • HSA dollars can be used for eligible out of pocket medical, dental and vision expenses. • Withdrawals for eligible out of pocket expenses are always tax-free. • For an in depth list of eligible and ineligible medical expenses, refer to IRS Publication 502 for more information.

Health Savings Accounts Choice Bank HSA Features Payment Options • Debit Card • Bill Pay (with Online Banking) • Self-Reimbursement • Checks (price varies) Fees may be assessed by your Mobile Service Provider. Online Banking • Check balance and transactions • View Check Images • View e. Statements • Pay bills with Bill Pay Mobile App • Check balance and transactions • Pay bills with Bill Pay • Debit Card Controls • Find ATMs

Health Savings Accounts Choice Bank HSA Features Interest Rate • Competitive interest rate earned on every dollar. Interest is compounded and credited monthly. Interest begins to accrue no later than the business day we receive credit for the deposit on non-cash items (for example: checks). Rates subject to change at any time. Investments • Balances over $3, 000 have the opportunity to grow their HSA through expanded investment options. Investment Products are: NOT A DEPOSIT * NOT FDIC INSURED * NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY * NOT GUARANTEED BY THE BANK * MAY GO DOWN IN VALUE. Fees • $2. 50/month=daily minimum balances $0$2, 999 • No fee=daily minimum balances $3, 000+ A monthly service charge of $2. 50 will apply, waived on daily minimum balances over $3, 000.

Health Savings Accounts Three Ways to Apply Fill out the paper Choice HSA Application Apply Online at bankwithchoice. com/p ersonal-hsa/ Visit Your Local Choice Bank

Questions? HSA Help Team (866) 702 -9033 hsa@bankwithchoice. com Benefits Team (701) 356 -9895 benefits@bankwithchoice. com Monday-Friday 8: 00 am-6: 00 pm CT Monday-Friday 8: 00 am-5: 00 pm CT