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

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Presentation on theme: "Georgia Tech HSA and FSA Adrienne McGeehan U.S. Bank June, 2014."— Presentation transcript:

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

2 2 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.

3 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. 3

4 What is the difference between an HSA & FSA? Health Savings AccountFlexible Savings Account Who owns it? 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. 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. 4

5 5 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 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.

6 6 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

7 7 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

8 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 under Useful Links & 8 Qualified Medical Expenses DOCTOR/HOSPITAL SERVICES Doctor’s office visits, hospital visits, ambulance services flu shot/immunization, physical therapy, eye surgery PHARMACY Prescriptions, some over-the-counter items SERVICES/TREATMENTS Drug/alcohol treatment, nursing home/services, diagnostic services, smoking cessation programs, psychiatric care, acupuncture, fertility treatment, chiropractor, dental treatment MEDICAL PRODUCTS Wheelchair/crutches, hearing aids, eyeglasses and contact lenses

9 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 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 9

10 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 on and click on alert and attach receipt. Email receipt reminder and documentation Fax receipt reminder and documentation to 888-403-5029 10

11 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

12 12 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

13 U.S. Bank Healthcare Expense Tracker 13 Add a new expense Detail expense information (date- of-service, amount, provider, etc.) Update existing expense Add or view receipt images

14 14 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

15 15 “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

16 HSA Investors: Investment Detail 16 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.

17 HSA Investment Options ValueBlendGrowth Large Cap Nuveen Dividend ValueNuveen Equity IndexNuveen Large Growth Mid Cap John Hancock Disciplined Value Mid Nuveen Mid Cap IndexNuveen Mid Cap Growth Small Cap Nuveen Small Cap ValueNuveen Small Cap IndexNuveen Small Cap Growth International American Funds EuroPacificAberdeen Emerging Markets Allocation/Lifestyle/ Target Date Nuveen Strategy Conservative Nuveen Strategy Balanced Nuveen Strategy Growth Nuveen Strategy Aggressive High GradeMedium GradeLow Grade Fixed Income/Bonds First American Prime Obligations Money Mkt. PIMCO Low Duration Nuveen Plus Core BondPrudential High Yield 17

18 18 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

19 19 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

20 20 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

21 21 Thank you

22 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 22

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