Georgia Tech HSA and FSA Adrienne McGeehan U.S. Bank June, 2014.

Georgia Tech HSA and FSA Adrienne McGeehan

U.S. Bank

June, 2014

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What is a Health Savings Account (HSA)?

• An HSA is similar to a 401(k), but for healthcare.*

• The funds can be used to pay for qualified medical expenses today or can be saved for future expenses.

• Earnings are tax-exempt, and qualified medical expenses can be paid from the account tax-free.

• Turns into a retirement account at retirement to use for qualified or non-qualified expenses.**

• * There is a required minimum balance prior to investing within an HSA.

• ** Only subject to income tax on those dollars.

What is a Limited Purpose Flexible Spending Account (LPFSA)?

• Definition: An account that provides pre-tax reimbursement of qualifying out-of-pocket expenses related to dental, vision, and preventive care expenses not covered under the health plan.

• Dental Care Examples: Cleanings, fluoride treatments, extractions, x-rays, fillings, bridges, orthodontia and more.

• Vision Care Examples: LASIK, eye exams, eye glasses (contact lenses), solution.

• Preventive Care Examples: Screenings, tests and diagnostic procedures in conjunction with evaluation, immunizations, tobacco cessation, preventive medicines such as diabetic medicine and supplies.

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What is the difference between an HSA & FSA?

Health Savings Account Flexible Savings Account

Who owns it? You the employee does. You the employee does.

Any prerequisites? Must be paired with a High Deductible Health Plan (HDHP). No.

How does it work? Money is payroll deducted and put into a pre-tax account. Amount is only available as deducted. Reimbursement options available through healthcare debit card, online reimbursement, and bill pay. Retain your receipt for your record.

Election amount available at the start of the plan year (with exception of dependent care which is available as deducted). Reimbursement options available through healthcare debit card, online reimbursement, and mobile. Receipt may be required.

Is it portable? Yes – you can take it with you upon leaving your employer or retirement.

No.

Does unused money carry over?

Yes – there’s no use-it-or-lose it penalty. No – you have to use it by the end of the year.

What expenses are eligible?

Refer to the 213(d) expense list for what qualifies. Refer to the 213(d) expense list for what qualifies.

What is the big tax benefit?

Tax-free on money contributed to the account, tax-free earnings, tax-free withdrawals for qualified medical expenses.

Contributions to FSAs are tax free, reducing your annual taxable income.

Other Future thinking account. Investment opportunity and an additional retirement planning account for medical expenses in retirement.

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• Contribute on a pre-tax basis– Contributions through your

employer via payroll deduction • Contribute on an after-tax basis*

– Use the online contribution tool to electronically debit your personal checking or savings account

– Use the online HSA deposit form and mail with your personal check

Making Contributions to an HSA

$3,300

$6,550

$1,000

Single

Family

Catch up**

2014 Contribution Limits

*Deduct after-tax contributions from taxable income when filing your personal tax return as an above-the-line deduction.** Catch-Up Contribution: age 55 or older, up to an additional $1,000.

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Using Your HSA Funds

• Payment Card: use it at healthcare locations where MasterCard is accepted– Money comes directly out of your account– No need to pay upfront and wait

for reimbursement – Cannot be used at ATMs

• Direct Deposit Reimbursement: initiate an online reimbursement for expenses paid out of pocket

• Bill Pay: issue an online payment to your provider when you receive the final bill

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FSA Easy Reimbursement Options

• Payment Card: use it at healthcare locations where MasterCard is accepted

• Online: File a claim online

• U.S. Bank Healthcare Mobile Application: File a claim through mobile app

• Alternate option: Paper claim

• IRS Publication 502* contains a list of all approved qualified medical expenses, including but not limited to:

*IRS Publication 502 can be found online at www.mycdh.usbank.com under Useful Links & Resources.

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Qualified Medical Expenses

DOCTOR/HOSPITAL SERVICESDoctor’s office visits, hospital visits, ambulance servicesflu shot/immunization, physical therapy, eye surgery

PHARMACYPrescriptions, some over-the-counter items

SERVICES/TREATMENTSDrug/alcohol treatment, nursing home/services,diagnostic services, smoking cessation programs,psychiatric care, acupuncture, fertility treatment,chiropractor, dental treatment

MEDICAL PRODUCTSWheelchair/crutches, hearing aids, eyeglasses and contact lenses

When is a receipt required?

• HSA: Always save receipt for your record. It is not required to send receipt to U.S. Bank.

• FSA/LPFSA:

–Not requiring receipt: –IIAS/90% Merchants (Lists on mycdh.usbank.com website).–Medical FSA: Co-pay’s that match on our system

–Requiring receipt: –Doctor’s offices–Dental offices–Prescriptions that do not match co-pay amount

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Substantiation Options for FSA/LPFSA

• Receipt Reminder Alert: Upon receiving notification by email (if email available) or by receipt reminder alert upon log-in.

–Day 5/ Day 20/ Day 45 – Day 60, card placed on-hold• U.S. Bank Healthcare Mobile App• Log-in under mycdh.usbank.com on and click on alert and

attach receipt.• Email receipt reminder and documentation

[email protected]• Fax receipt reminder and documentation to 888-403-5029

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Dependent Care and Orthodontia Automatic Reimbursement Options

• Automatic Dependent Care Automatic Reimbursement – –Complete one form to set up payments for the year

–If cost meets/exceeds payroll deduction amount, reimbursement will be made as payroll deductions occur

• Orthodontia Automatic Reimbursement – –Complete one form to set up payments through end date of

treatment plan which can be faxed/mailed as indicated on form

–Reimbursement would be either check, or via direct deposit if this is completed on portal

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Managing Your Account(s) Online

• View balance, contribution and distribution information

• Initiate direct deposit reimbursements and online payments

• Access forms, investment information and other tools

• Designate beneficiaries• Update dependent information• Order additional card(s) for

spouse and dependents

U.S. Bank Healthcare Expense Tracker

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Add a new expenseDetail expense information (date-of-

service, amount, provider, etc.)Update existing expenseAdd or view receipt images

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Viewing Your Dashboard Summary

• View dashboard for at-a-glance summary – Total healthcare expenses– Total paid, unpaid, partially

paid expenses – Total amount eligible to

submit – Payment statuses – Annual rollup of all your

expenses, including other recipients

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“I’m on my way to the doctor. Do I have an adequate balance?”

“I need to purchase a prescription at my pharmacy. Will my HSA balance cover the cost?”

U.S. Bank Healthcare Mobile Application

HSA Investors: Investment Detail

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• Choose from 19 investment options*• View fund performance, transaction and fund activity detail

* There is a required minimum balance prior to investing within an HSA.

HSA Investment Options

Value Blend Growth

Large Cap Nuveen Dividend Value Nuveen Equity Index Nuveen Large Growth

Mid Cap John Hancock Disciplined Value Mid

Nuveen Mid Cap Index Nuveen Mid Cap Growth

Small Cap Nuveen Small Cap Value Nuveen Small Cap Index Nuveen Small Cap Growth

International American Funds EuroPacific

Aberdeen Emerging Markets

Allocation/Lifestyle/Target

Date

Nuveen Strategy Conservative

Nuveen Strategy Balanced

Nuveen Strategy Growth

Nuveen Strategy Aggressive

High Grade Medium Grade Low Grade

Fixed Income/Bonds

First American Prime Obligations Money Mkt.

PIMCO Low Duration

Nuveen Plus Core Bond

Prudential High Yield

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Your Responsibilities HSA

• Always save your receipts– No third party substantiation of how your

money is spent– IRS may need receipts if you are part of a

general IRS audit

• Tax Reporting– U.S. Bank will send you IRS Form 1099 only if you distributed

funds out of your HSA in the prior year – U.S. Bank will provide you IRS Form 5498 online to download if

you contributed funds to your HSA – Complete form 8889 annually when you do your taxes

• You are solely responsible for how you spend your HSA dollars

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Your Responsibilities FSA

• You are responsible for how you spend your FSA dollars and providing documentation

• You are notified via email (if email is listed) to provide documentation/receipt – Notification is also available on front page once

logged in• Important: If receipt is not received within 60

days, the card will move to a hold status until receipt is received.

Reminder

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Accountholder Support

• HSA Consumer Services Representatives available Monday through Friday, 7:00 a.m. to 7:00 p.m. (CT): 877-470-1771

• Interactive Voice Response (IVR) available 24/7: 877-470-1771• Tools and resources available at mycdh.usbank.com

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Thank you

Important Information

• This Health Savings Account (HSA) is a custody account with U.S. Bank serving as the custodian. Terms and conditions of the HSA are included in your HSA Application and Agreement. For the U.S. Bank HSA, your funds maintained in the Cash Account are FDIC insured subject to the FDIC insurance coverage and insurance limits allowed by law. FDIC insurance is calculated on end-of-day ledger balances in your deposit account which may include funds deducted from your available balance for investment purchases that have not yet settled.

• Non-deposit investment products, such as mutual funds, are not deposits or obligations of, or guaranteed by U.S. Bank or any of its affiliates, nor are they insured by the Federal Deposit Insurance Company (FDIC), or any other government agency. Past returns of investment products do not guarantee future results. Mutual fund prospectuses provide detailed information about fund investment objectives and fees. Read a mutual fund's current prospectus carefully before investing.

• U.S. Bank does not provide legal, tax, or investment advice to HSA accountholders. Contact a qualified accountant, attorney or investment adviser for tax, legal or investment advice.

© 2014 U.S. Bank National Association. All trademarks are the property of their respective owners.CPS 3774 R-5/14

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