1. Considering a Health Savings Account (HSA)?

2. What is a Health Savings Account-HSA? http://youtu.be/GTHQ04IAPLI

3. Let’s Review - HSA Plan Concept #1 Part II: Health Savings Account HSA Concept Covers illness or injury after the deductible, and certain preventive care services at no cost to you. Pays for Qualified Medical Expenses not covered by the health plan. Out-of-pocket includes deductible & co-insurance Qualifying deductible ranges are limited by the maximum out-of-pocket. 2014SingleFamily Min. Deductible $1,250$2,500 Max. Out of Pocket $6,350$12,700 Part I: High Deductible Health Plan Max. ContributionSingleFamily For 2014$3,300$6,550

4. Qualified Medical Expenses Doctor and hospital visits Medical equipment Dental care, braces, dentures Vision care, glasses, contacts Medications, (over-the-counter items with a Rx stating medical condition) Medical related transportation *A list of Qualified Medical Expenses can be found 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 considered Qualified Medical Expenses for HSA purposes.http://www.irs.gov/pub/irs-pdf/p502.pdfhttp://www.irs.gov/pub/irs-pdf/p969.pdf A Qualified Medical Expense is incurred to maintain the health of the accountholder or the accountholder’s spouse or dependents. The following are included:

5. Other Qualified Medical Expenses Premiums for long-term care insurance –Limited to amount listed in 213(d)(10) of the Internal Revenue Code Premiums for COBRA Premiums for coverage while receiving unemployment compensation Premiums for individuals over age 65 –Retirement health benefits –Medicare premiums

6. Let’s Review - HSA Concept #2 Contributions Earnings Tax-Deferred Growth Tax-Deductible/ Pre-Tax Contributions Tax-Free Distributions (For Qualified Medical Expenses) HSA Normal Tax (NON-qualified expenses if you are 65 or older)

7. What does an HSA really mean to me? 1.Control over healthcare dollars 2.Tax benefits on contributions, earnings and distributions –Contributions are either pre-tax or post tax –(via paycheck) or tax-deductible 3.Funds roll over from year to year –No “use it or lose it” 4.Portability –Funds follow you –Tax-free withdrawals for Qualified Medical Expenses even if qualifying coverage ends 5.Long-term investment opportunities

8. Who is eligible for an HSA? Not covered by any other non HSA-compatible health plan Not claimed as a dependent on another person’s tax return (excluding spouses per Internal Revenue Code) Not enrolled in; Medicare Tri-Care VA or I.H.S. (if you have used the benefits in the last 3 months) Full Medical FSA or HRA in the same household Individuals who are covered by an HSA-compatible health plan are qualified if they are:

9. Tax Savings Example Contribution$3,000 per year for 25 yrs Annual Medical Expenses$500 per year Tax Bracket28% (Federal) Average Interest Rate2% 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.www.hsabank.com

10. Online 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 http://hsabank.com/hsabank/Education/HSA_Right_For_Me.aspx

11. How to Contribute Through your employer –Payroll deductions may be an option Online through Internet Banking –One-time or recurring from an external account. Checks Transfers or rollovers –(HSA, IRA) Accountholder Employer Third Party Contributions from all sources count toward the annual maximum. How Are They Made? Who Makes Contributions? YearIndividualFamily 2014$3,300$6,550 Annual IRS Maximum (regardless of deductible) Individuals and/or their spouses, over the age of 55 and not enrolled in Medicare can make an additional $1,000 catch-up contribution annually.

12. Distribution Options Debit card from Visa ® Reimbursement from Internet Banking to an external account HSA checks Withdrawal Form –Mail to HSA Bank

13. Investment Options HSA Bank offers a unique opportunity to invest HSA funds in self-directed investment accounts. HSA Bank offers: TD AMERITRADE investment accounts Mutual Fund Selection investment accounts **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 principal amount invested.

14. Service and Support Toll-free Bankline 24-hour account access via touch tone phone (800)-565-3512 Toll-free Client Assistance Center (800) 357-6246 7 a.m. – 9 p.m., CT, Monday – Friday Toll-free Spanish Language Assistance Line (866) 357-6232 7 a.m. – 9 p.m., CT, Monday – Friday