WHAT MAKES A HEALTH SAVINGS ACCOUNT (HSA) DIFFERENT?

• Non-taxable when used to reimburse qualifying health expenses
• Accumulated for future health expenses
• Portable from one employer to the next
• Available to spend on non-health purposes on a taxable basis
• Supplemented by your employer, based on your plan design, by a family member, or by any other person who meets IRS guidelines

HEALTH SAVINGS ACCOUNTS (HSAs) OFFER A VARIETY OF VERSATILE, USER-FRIENDLY FEATURES:

Control: You own the funds in your account from day one. You decide when and how to spend them.

Flexible funding: Your account can be funded through employer contributions, salary reduction and/or tax-deductible contributions. Unlike other types of tax-advantaged accounts, family members, or any other person, can make contributions to your account, as long as they meet IRS guidelines.

No more use-it-or-lose-it rule: Accumulate funds in your tax-exempt account. The funds are there when you need them-now or in the future.

Portability: Take your account with you wherever you go. The funds you accumulate can help you plan for retirement. From age 55 up to when you are enrolled in Medicare, you can make additional contributions to maximize your tax advantages and set aside the money you need.

Expanded use of funds: You can use your HSA dollars, on a tax-free basis, for all eligible medical expenses. You can also use your money for non-health expenses on a taxable basis.

Health premium coverage: Your HSA can be used to fund certain health coverage premiums (COBRA, long-term care and coverage while receiving unemployment compensation) in addition to out-ofpocket health expenses.

Convenient access to funds and account information: You can access your HSA funds easily with your Health Savings Account MasterCard ® Debit Card, and find important account information online at http://www.fidelitybankbr.com or our telephone banking line at 225-925-2265.

HOW YOUR HSA WORKS

Contributions you make to your HSA are tax-deductible. Funds you withdraw to pay for qualified medical expenses, as defined by Section 213(d) of the IRS Tax Code, are tax-free. A list of these expenses is available on the IRS Web site, www.irs.gov. If you use your HSA funds to pay for non-health related expenses, the amount will be taxable and you will pay an additional 10 percent tax penalty. The tax penalty does not apply if you are over age 65 or enrolled in Medicare, but gross income tax reporting applies. Your medical plan materials provide you with the exact contribution amounts your plan allows.

ABOUT YOUR ACCOUNT

Your HSA funds are deposited in a custodial account, and funds will earn interest. Fidelity Bank, an FDIC-insured, Louisiana state-chartered financial institution, will service your account.

CONTRIBUTION GUIDELINES

Please refer to the IRS Contribution/Deductible Guidelines sheet for the specific dollar amount you may contribute during the plan year.

Once you are no longer covered by a high-deductible plan, you cannot continue to make contributions; however, the money in your HSA is yours to keep at Fidelity Bank or transfer to another qualifying account. Should you choose to transfer your account to another qualifying account, you must do so within 60 days to avoid a penalty.

MAKING CONTRIBUTIONS

You can make contributions to your HSA:

• By mailing a deposit with a contribution form
• Through payroll deduction-if your employer offers this option for your HSA, you can request that your employer deduct a set amount from your paycheck

SAVE YOUR RECEIPTS

Save your supporting documentation when you withdraw funds. You are responsible to verify qualified health care expenses, as defined by Section 213(d) of the IRS Tax Code. The IRS may require you to provide documentation for your withdrawals. Any expenses that do not fall within IRS guidelines will be considered taxable, and the appropriate tax rules will apply.

WITHDRAWING FUNDS

You can withdraw funds:

• With your Health Savings Account Card^SM
• By filling out a form and sending it to Fidelity Bank for an electronic fund transfer into your checking or savings account

Account setup fees, maintenance fees, ATM withdrawal fees and all other fees are included in the HSA Custodial and Deposit Agreement. You will receive periodic communications from Fidelity Bank as these fees are updated.

HOW YOUR HEALTH SAVINGS ACCOUNT WORKS WITH YOUR MEDICAL PLAN

While you are contributing to your HSA, you have a high deductible medical plan that provides coverage for health care services for you and your covered dependents. The plan has a high deductible and a maximum out-ofpocket amount that meets the government requirements regulating HSA's. Your specific plan design, deductible and out-of-pocket amounts are provided to you in your medical plan information.

As health care costs continue to increase, many people enrolled in high-deductible medical plans are considering a new, tax-advantaged way to help save and pay for these costs. Health Savings Accounts (HSA's) offer the tax advantages associated with Flexible Spending Accounts and Personal Benefit Accounts (Health Reimbursement Accounts) - but can provide even more value.

A Health Savings Account (HSA) gives you the freedom to spend the money you save as you choose. Your HSA is your account. You own it. You can fund it. And you can take it with you wherever you go.