Overview of your Health Savings Account (HSA)

HSA eligibility You are eligible to open and contribute to an HSA if: You are covered by an HSA qualifying high deductible health plan (HDHP) You are not covered by any other health plan that is not a high deductible plan You are not enrolled in Medicare, TRICARE or TRICARE for Life You are not claimed as a dependent on someone else’s tax return You are not covered by a health care flexible spending account (FSA) You have not received Veterans Administration (VA) benefits within the past three months, except for preventive care. If you are a veteran with a disability rating from the VA, this exclusion does not apply.

What is an HSA? Health savings accounts (HSAs) are designed to help you save and pay for qualified medical expenses $ Deposit money into your HSA. Save on taxes. $ No “use it or lose it”. The money stays with you year after year, even if you retire or change employers. Use your HSA to pay for qualified medical expenses. Invest your savings in mutual funds.

Contribution limits Amount of contribution The IRS determines how much you can deposit into your HSA each year. Contribution rules In 2018, the limit for individuals is $3,450 and the limit for families is $6,850. For mid-year enrollments, you still qualify for the full limit as long as you remain enrolled in the qualified health plan for the entirety of the following calendar year. Additional contribution If you are 55 years of age or higher, you can contribute an additional $1,000/year. Employer contribution Remember that Carleton College contributes $1000 to your HSA if you carry individual coverage, and $2000 if you carry family coverage, and that money counts towards the IRS limit.

The IRS determines the list of qualified medical expenses A few examples: 1 Medical tests and devices Operations/surgeries (non-cosmetic) Nursing services Physical therapy Psychiatric care Acupuncture Alcohol/drug addiction treatment Dental treatment Doctor’s visits Eye exams, glasses or contacts Smoking cessation Hearing aids and batteries Easily save your receipts with receipt vault IRS.gov or optumbank.com

What if you use your HSA for non-qualified medical expenses? Less than 65 years old? You pay income tax on the funds -AND- 20% penalty by the IRS You pay income tax on the funds only 65 or older?

Medicare and your HSA Once you enroll in Medicare (Part A or B), you can no longer contribute to your HSA. However, you can still withdraw funds to pay for qualified medical expenses. But…why not let your money continue to grow? 1

You can grow your HSA dollars by choosing to invest in mutual funds Investing your HSA You can grow your HSA dollars by choosing to invest in mutual funds Find the full list of mutual funds at optumbank.com Investments are not FDIC insured, are not guaranteed by Optum Bank®, and may lose value.

How it works Step 1: Step 2: Step 3: Log into your HSA and set up your investment account by choosing the funds you want to invest in. Then indicate the amount that you want to transfer over. Step 2: You can set up recurring transfers/sweeps. Any funds over your threshold will automatically be transferred to your investment account. Step 3: When you want to pay for any qualified medical expenses, you can transfer your investment funds back into your HSA. Investments are not FDIC insured, are not guaranteed by Optum Bank®, and may lose value.

Managing your HSA online Check your balance Pay bills to health care providers Reimburse yourself for qualified medical expenses paid out-of- pocket Use HSA calculators Check the contribution tracker for YTD contribution amounts Use the convenient receipt vault Manage investment activities for your HSA optumbank.com Investments are not FDIC-insured, are not guaranteed by Optum Bank®, and may lose value.

#1 financial worries in retirement financial worries in retirement Saving for retirement #1 Health care expenses are one of the financial worries in retirement financial worries in retirement costs predicted to reach 500K 1

Saving for retirement Wondering if you’ve saved enough money for health care during retirement?

MasterCard®: Safety and Security Benefits Optum Bank provides cardholders with MasterCard ID Theft Protection – at no extra cost – to help detect and resolve Identity Theft. This benefit includes: • ID Theft Alerts – This service tracks thousands of websites to learn if a cardholder’s personal information is being bought or sold online. Cardholders can register for Advance Alerts for early detection at mastercard.us/idtheftprotection. • Expert Resolution Services – Expert assistance is available to help cardholders 24/7 if they think their identity has been stolen. They can call 1-800-MASTERCARD. They will be assigned their own personal certified specialist, who will guide them through the process every step of the way. • Emergency Wallet Replacement – Experts assist cardholders to quickly cancel and re- order the content of their physical wallet such as social security card, driver’s license and more. They can call 1-800-MASTERCARD for assistance. To bring cardholders this benefit, MasterCard and Optum Bank have partnered with CSID®, an industry leader in identity protection and fraud detection solutions.  

What if you have more questions? Call Optum Bank customer service (844) 326-7967 Visit optumbank.com