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					Considering a
Health Savings
  Account?
Basic HSA Plan Concept
              Part 1: High Deductible Health Plan
                For 2009            Single        Family

          Min. Deductible           $1,150        $2,300
                                                                     Intended to
          Max. Out of Pocket        $5,800       $11,600
                                                                    cover serious
                For 2010            Single        Family          illness or injury
          Min. Deductible           $1,200        $2,400
 HSA
          Max. Out of Pocket        $5,950       $11,900
Concept
                Part 2: Health Savings Account
                For 2009            Single        Family
                                                                  Can pay for
          Max. Contribution        $3,000         $5,950          eligible expenses
                For 2010            Single        Family          not covered by
          Max. Contribution        $3,050         $6,150          the health plan
            Made by: Employer, Employee, and/or other party
           Individuals can contribute the maximum regardless of
           their deductible.



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    HSA Eligibility

 Covered by qualified high-deductible health
  plan (HDHP)
 Not covered by any other non-HDHP
 Not claimed as a dependent on another
  person’s tax return.
 Not enrolled in Medicare
     *Section 152 of the Internal Revenue Code excludes spouses from the
                            definition of dependent.



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What is the catch-up contribution?


Accountholders who are age                            Year        Catch-up Amt.
55 or older and not enrolled
                                                     2009+              $1,000
in Medicare can make catch-
up contributions.



    Note: Spouses of accountholders who are 55 or older and meet the IRS eligibility
    requirements can open their own HSA and make a catch-up contribution.




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    What are Qualified Expenses?

     A Qualified Expense is generally a medical expense
      incurred for you, your spouse or your dependents.
     A complete list is provided in IRS Publication 502
      http://www.irs.gov/pub/irs-pdf/p502.pdf
        As described in IRS publication 969
         http://www.irs.gov/pub/irs-pdf/p969.pdf, over-the counter
         medications are also considered eligible expenses for HSA
         purposes.




        Note: HSA does not provide tax advice. Please consult a qualified tax advisor with questions.




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Other eligible medical expenses

 Premiums for long-term care insurance
     Limited to amount listed in 213(d)(10)

 Premiums for "COBRA”
 Premiums for coverage while receiving
  unemployment compensation
 Premiums for individuals over age 65
     Retirement Health Plan Premiums
     Medicare Premiums


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Tax Treatment of HSAs…

For Employees/Accountholders
 Contributions
     Excluded (pre-tax) or
      deducted (after tax) from
      federal taxable income
 Earnings
     HSAs grow in the same tax-
      deferred manner as IRAs




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Tax Treatment of HSAs                         (Continued)



    For Employees/Accountholders
     Distributions
        Withdrawals for qualified medical expenses are always tax-
         free. After age 65, funds may be withdrawn for any reason
         without penalty, subject to regular income tax.
     Upon death of accountholder
        If the spouse is the beneficiary, the HSA may transfer to
         the spouse’s name and remain a tax-favored account
        If the beneficiary is not the spouse, the funds are paid to
         the beneficiary as a taxable transaction
           If the HSA does not have a beneficiary, the funds are
             paid to the estate of the accountholder



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Tax Savings Example
    Contribution                             $3,000 per year for 25 yrs
    Annual medical expenses                                    $500 per year
    Tax Bracket                                               28% (Federal)
    Average interest rate                                                    2%
                TAX SAVINGS ON CONTRIBUTIONS =
                                  $17,500.00
              TAX SAVINGS ON DEFERRED GROWTH =
                                   $4,921.21
        ACCOUNT BALANCE AT THE END OF 25 YEARS =
                                  $80,075.75
    For illustrative purposes only. Actual savings may vary. Visit www.hsabank.com
                and click on Calculate Savings for a personalized estimate.


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HSAs, HRAs, FSAs

                        HSA            HRA          FSA
     Account
                      Employee        Employer    Employee
     Owner
                                                  Employee,
                      Employee,
     Funding                          Employer     Possible
                    Employer, Other
                                                  Employer
     Roll Over                        Generally
                         Yes                         No
     Year-To-Year                       No
                                      Generally
     Portable            Yes                         No
                                        No


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Advantages of an HSA

For an Employee
     Funds roll over year to year
       No need to “use it or lose it”
     Tax benefits on the contributions, earnings, and
      distributions
       Potential for increased take-home pay
     Long-term investment opportunity




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Savings Account Option

      Interest bearing “bank” account
         Accounts are opened as an FDIC-insured
          bank account through Webster Bank, N.A.
            Current interest rate and annual
             percentage yield information is available
             on our website, www.hsabank.com or by
             calling (800) 357-6246.
               Interest Rate and APY are subject to
                change, at our discretion, at any time. Fees
                may reduce earnings.



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Self-Directed Investment Option

      TD Ameritrade Corporate Services
         Access to stocks, bonds and over 11,000
          mutual funds
         Trades are made online or over the phone
         Transfer funds from your HSA to your
          investment account:
               Online through Internet Banking
               By calling the Client Assistance Center
     Investment products are not FDIC insured, are not a deposit or other obligation of or guaranteed by the
        bank, and are subject to investment risks including possible loss of the principal amount invested.




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Mutual Fund Selection

  Devenir Investment Advisors
        Selection Options
              Employer can offer our standard selection of
               historically top-performing mutual funds
              For an additional fee, employers can select mutual
               funds similar to their 401(k) offering
        Trades are completed online through HSA Bank’s
         Internet Banking system

     Investment products are not FDIC insured, are not a deposit or other obligation of or guaranteed by the
        bank, and are subject to investment risks including possible loss of the principal amount invested.




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Accountholder Communication
and Reporting
      Account statements
         Periodic account inserts with valuable legislative
          information, account features, and more
      IRS reporting
         Year-end status report
         1099-SA (distributions)
         5498-SA (contributions)
      Online Account Access through Internet Banking
         Account balance and transaction history
            (Up to 18 mo. for convenient tax reporting)
           View cancelled checks
           Year-to-date information (Including a breakdown of contributions by source.)
           Ability to download transaction history to Quicken or Money
           Email confirmation of account opening and ongoing activity
           Online address changes
           Access to Online Contributions


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 Calculation Tools

 Is an HSA Right for Me
      Allows you to compare a traditional health plan and an
       HSA qualified plan to determine potential savings
                 http://hsabank.com/HSABank/Education/HSA_Right_For_Me.aspx
 Future Value Calculator
      Calculates tax savings on contributions and tax-deferred
       growth as well as the future value of your Health
       Savings Account
                 http://hsabank.com/HSABank/Education/futurevalue
     H SAFO RM




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Account Support

 Toll-free Bankline
    24-hour account access via
     touchtone phone
       (800)-565-3512

 Toll-free Client Assistance Center
     (800) 357-6246
     7 a.m. – 9 p.m., Central Time, Monday – Friday

 Toll-free Spanish Language Assistance Line
     (866) 357-6232
     7 a.m. – 9 p.m., Central Time, Monday – Friday



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Thank You for Considering…




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