hsa refresher for renewing members insert name of audience insert date

HSA Refresher for Renewing Members

Insert name of audience

Insert date

Confidential property of Optum. Do not distribute or reproduce without express permission from Optum.

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• Slide 17: Update if the employer does not support payroll deduction

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Agenda

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HSA trends

Review of HSA basics

How to get a second debit card

Making deposits to your account

Paying for qualified medical expenses

Managing your HSA online

Investing your HSA

Where to go for help

Investments are not FDIC insured, are not guaranteed by Optum Bank℠, and may lose value.

Confidential property of Optum. Do not distribute or reproduce without express permission from Optum. 4

Optum Bank , Member FDIC℠

Established in 2003

Subsidiary of Optum – owned by UnitedHealth Group

Deposits are insured by the FDIC up to $250,000

Focuses solely on health care banking

We have more than $2.8 billion in assets

One of the nation’s leading providers of health savings accounts

We administer over 1.5 million individual health savings accounts

Serves thousands of employers, families and individuals


HSA refresher

Deposit money into your HSA.

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Health Savings Accounts (HSAs) are designed to help you save and pay for qualified medical expenses


Save on taxes.

Invest your savings in mutual funds.

Use your HSA to pay for qualified medical expenses.

$


Contribution limits

The IRS determines how much you can deposit into your HSA

each year.Amount

of contribution

In 2015, you can contribute up to $3,350 for individual coverage and up to $6,650 for family coverage. In 2016, the limit for individuals remains at $3,350 and the limit for families increases to $6,750.

Contributionrules

Those 55 years of age or higher, but not yet entitled to Medicare benefits, can fund an additional $1,000/year “catch-up” contribution.

Additionalcontribution

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How an HSA helps you save

The money Steve puts into his HSA is income tax-deductible

Any money Steve withdraws from his HSA to pay for qualified medical expenses is withdrawn income tax-free

Steve may earn interest on his account, and it is not taxable

The amount not spent during this year carries over for use in future years

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How much did Steve save?

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In 2015, Steve will deposit $6,650 into his HSA, the maximum contribution for family coverage

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Steve will withdraw $3,000 to pay for qualified medical expenses for himself and his family2

Steve earns interest on his account3

Steve will carry over $3,650 HSA dollars (contributions – expenses + account earnings) into the next year

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Steve’s federal and state income tax and FICA savings for the year are $2,504*

Steve will not have to pay income taxes on the $3,000 as long as he uses it to pay for qualified expenses

Steve does not have to pay income taxes on his interest

With a traditional plan, Steve wouldn’t have this carryover option, which helps him save for the future

* Assumes a 25% federal tax rate, 5% state tax rate and 7.65% FICA


Using your HSA funds

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• Use the funds in your HSA

• Build balances to cover your HDHP deductible

• Save for the future and grow funds tax-free

Use your HSA funds now, or save for the future


Use HSA dollars to pay for qualified

medical expenses for your spouse

or dependents

HSA qualified medical expenses

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Medical plan deductibles and

coinsurance

Medical, dental and vision care

services & products


Other HSA-qualified medical expenses

Health coverage while receiving unemployment benefits

COBRA continuation coverage

Qualified long-term care

Medicare premiums and out-of-pocket expenses

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Access your HSA funds

Use your Optum BankSM Health Savings Account Debit MasterCard®

Sign up for automatic bill pay and online banking

Use HSA checks for this account

Pay for an expense with personal funds and reimburse yourself from your HSA


Using a debit card to access your HSA

Providers’ office Mail order pharmacyPharmacy


How do I get a second debit card?

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Order online

• Log in to your account at optumbank.com

• Click on Health Savings Account (HSA)

• Under the Self Service section, click on “Order debit cards”

• Add a new cardholder

• Your new card will arrive within 2 weeks


• Taxable as income

• Subject to a 20% tax penalty*

Paying for non-qualified expenses

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* The 20% tax penalty does not apply to account holders age 65 and older, those who become disabled or enroll in Medicare

Any HSA funds used for purposes other than to pay for qualified medical expenses are:


Save your receipts!

• Save your receipts for all qualified medical expenses

• Our convenient receipt vault allows you to upload receipts and store them within your HSA online

• Optum BankSM does not track your expenses or verify eligibility


How to make deposits into your HSA

Contribute through payroll deduction and save on FICA taxesPayroll

deduction

Arrange a one time or recurring electronic transfer from an account at another financial institution

Contribute online

Deposit additional dollars into your account by mailing in a checkMail a check

You can make HSA deposits until April 15th in order to realize tax savings for the prior year


Rollovers from an IRA, MSA or HSA

One-time distribution from your traditional or Roth IRA

• Direct your IRA trustee to make the distribution into your HSA

• Cannot exceed your contribution eligibility

• Cannot include as income and is not tax deductible

Transfer funds directly into another HSA

• Direct an HSA administrator to transfer funds into another HSA

• Cannot include the amount as a deduction or distribution

Roll over amount from Archer Medical Savings Accounts (MSAs) and other HSAs

• Must roll over the amount within 60 days after the date of receipt

• Can make only one rollover contribution in a one-year period


How Molly uses her HSA

Molly goes to the doctor with her HSA

After her visit to the doctor, Molly submits a claim to her health care plan

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Molly fills her prescription and pays for it with her HSA Debit MasterCard®

Molly presents her health plan member ID card at the doctor’s office

Molly receives and pays her doctor’s bill with her HSA Debit MasterCard®

Molly retains her receipts

Her doctor submits a claim to her health care plan


• Check your balance

• Arrange deposits from another banking account

• Pay bills to health care providers

• Reimburse yourself for qualified medical expenses paid out-of-pocket

• Use HSA calculators

• Check the contribution tracker for YTD contribution amounts

• Use the convenient receipt vault

• Manage investment activities for your HSA

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Managing your HSA online

Investments are not FDIC-insured, are not guaranteed by Optum BankSM

, and may lose value.

optumbank.com


Logging In

optumbank.com


HSA Dashboard

• Current and available balances

• Recent or scheduled transactions

• Investment portfolio

• Statements and tax documents



Paying a bill online


Receipt vault


How do I reimburse myself?


Paying for major medical expenses

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If you encounter a major medicalexpense that costs more than the amount of money available in your HSA, you can:

1. Negotiate a payment schedule withyour provider

2. Pay with a credit card or other form of payment


Invest for the future, tax-free

• No taxes on investment earnings

• No taxes on withdrawals for qualified medical expenses

Investments are not FDIC-insured, are not guaranteed by Optum Bank , and may lose value. ℠


My Investments tab

My Investments tab on the OptumBank.com toolbar:

• How much you have in your HSA

• How much is available to invest


What if you have more questions?

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Visit optumbank.com

Talk to your employer

Call Optum Bank customer service (866) 234-8913

Thank you.

Health Savings Accounts (HSAs) are individual accounts offered by Optum BankSM Member FDIC, and are subject to eligibility and restrictions on distributions for qualified medical expenses set forth in section 213(d) of the Internal Revenue Code. State taxes may apply. Fees may reduce earnings on account. This communication is not intended as legal or tax advice. Please contact a competent legal or tax professional for personal advice on eligibility, tax treatment, and restrictions. Federal and state laws and regulations are subject to change.

Hypothetical example is for illustrative purposes only. All events, persons and results described herein are entirely fictitious and amounts will vary depending on your unique circumstances. Any resemblance to real events or persons, living or dead, is purely coincidental. Current rates are variable and may change at any time.

©2015 Optum, Inc. All rights reserved. 25325A-072015


hsa refresher for renewing members insert name of audience insert date

Documents

optum bank

subsidiary of optum

optum financial services

hsa onlineinvesting

hsa balance

health reimbursement

health care bankingwe

future health care expenses