1. Tax-Advantaged Health Accounts
Flexible Spending Accounts
Health Savings Accounts
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2. Confidential | ©2014 Gentex Corporation
Agenda
Why use a tax-favored account for health expenses?
What are FSA’s and HSA’s?
IRS approved expenses
Planning your 2019 account
Questions
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3. Why use a tax-favored account?
Do you have any out of pocket medical expenses during the year?
Co-pays
Deductibles
Co-insurance
Dental & Vision
Services not covered by the Gentex plans (such as Lasik Surgery or Hearing Aids)
FSA’s & HSA’s can both be used to pay for these expenses!
Do you think you may be paying for expenses in the future?
Medicare
Long Term Care (Assisted Living/Nursing Home)
An HSA can be used to save long-term for health care needs in retirement.
Confidential | ©2014 Gentex Corporation

4. Why use a tax-favored account?
Do you want to pay less in taxes?
Federal Income Taxes
State Income Taxes
FICA (Social Security & Medicare)
Money you contribute to an FSA or HSA is exempt from Federal, State (and local, if applicable) Income Taxes, as well as FICA taxes.
Additionally, when used correctly, the money you withdraw from your account is also tax free!
Confidential | ©2014 Gentex Corporation

5. Why use a tax-favored account?
Do you like convenience?
Payroll deductions make it easy to save
Debit Cards for convenient access to your funds
Online apps for simplified transactions
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6. What are FSA’s and HSA’s?
Flexible Spending Account:
Account based employer-sponsored plan
IRS rules require use-it-or-lose-it provision
Employers can allow some flexibility (Gentex allows a $500 roll-over)
In exchange, you can use up to your annual election immediately, even if not payroll deducted yet.
Annual maximum $2,650… projected to be $2,700 for 2019
Can be paired with any health plan
(limitations apply if enrolled in the Gentex H.S.A. Plan 3)
Used exclusively for qualified health expenses
Confidential | ©2014 Gentex Corporation

7. What are FSA’s and HSA’s?
Health Savings Account:
Individually owned bank account, with special tax treatment.
Employers facilitate payroll deductions and employer contributions
Preferred banking arrangements
Low/no fees
Macatawa Bank is Gentex’s preferred partner
2019 Annual maximum, including Gentex matching contribution
Single: $3,500 - $500 Gentex Match = $3,000
Family: $7,000 - $750 Gentex Match - $6,250
Age 55+: $1,000 Catch-up Contribution
To contribute, you must participate in a qualified high deductible health plan.
May be used for any reason, but only tax-free when used for qualified health expenses.
Confidential | ©2014 Gentex Corporation

8. What are FSA’s and HSA’s?
The Gentex Matching Contribution
Single Coverage? Gentex will contribute $125 at the beginning of each quarter ($500 annually) if you are contributing at least $9.62/week.
Two Person or Family Coverage? Gentex will contribute $ at the beginning of each quarter ($750 annually) if you are contributing at least $14.42 per week
Deadline to Open Macatawa HSA
Date of $125/$ Gentex Deposit
1st Quarter Contribution
12/17/2018
1/4/2019
2nd Quarter Contribution
3/18/2019
4/5/2019
3rd Quarter Contribution
6/17/2019
7/5/2019
4th Quarter Contribution
9/16/2019
10/4/2018
Confidential | ©2014 Gentex Corporation

9. Comparing your Plans: Understand the “Worst Case Scenario”
Making the Choice
Understand the “Worst Case Scenario”
(Family illustration)
Copays: up to an additional $8,500
Copays: up to an additional $7,000
Plan 1:
up to $16,221
Plan 2:
up to $14,213
Coinsurance $2,500
Plan 3:
up to $5,761
Coinsurance $3,000
Gentex HSA Deposit ($750)
Coinsurance $2,000
Deductible $1,000
Deductible $3,000
Deductible $2,000
Premiums
$4,099
Premiums
$2,063
Premiums
$1, 359
Confidential | ©2014 Gentex Corporation

10. What are FSA’s and HSA’s?
Flexible Spending Account
Health Savings Account
Account Ownership
Account is part of a group plan established by your employer.
Account is owned by you.
Forfeiture of Unused Funds
Outside of the $500 rollover allowance, any unused funds at the end of the year or termination of employment are forfeit
Unused balances remain in your account year after year. If you terminate employment, your bank account goes with you.
Annual Contribution Limits
$2,650 ($2,700??)
$3,500 if you have single coverage
$7,000 if you have family coverage
$1,000 extra if you are 55+
Confidential | ©2014 Gentex Corporation

11. What are FSA’s and HSA’s?
Flexible Spending Account
Health Savings Account
Eligibility to Contribute
Benefit Eligible Employee
If you are enrolled in Plan 3 or an H.S.A. Qualified Health Plan you can enroll in the Limited Purpose Flexible Spending Account. Covered Expenses are for Dental and Vision Expenses Exclusively
You can only contribute if you are enrolled in a Qualified High Deductible Health Plan (Gentex Plan 3)
Access to Money
You have access to your full annual election, even if you haven’t had the payroll deductions
You only have access to what has been deposited into your account.
Mid-year Contribution Changes
Only if you have a qualified life event.
At any time, as long as you do not exceed the annual limit.
Confidential | ©2014 Gentex Corporation

12. What are FSA’s and HSA’s?
Flexible Spending Account
Health Savings Account
Proof of Qualified Medical Expenses
You must prove that your expenses are “qualified” medical in order to get your reimbursement.
Claims paid with your FSA debit card may require proof after the fact. This is called substantiation.
If your expenses are not “qualified” medical, you will have to pay taxes, plus a 20% excise tax for early withdrawal.
You are never asked for proof before taking money out of the HSA.
Savings Growth
None. Other than what can be rolled over, you forfeit any unused account balances at the end of the year.
Growth through long-term savings. Unused funds remain in your account.
Growth through interest earned, or investment returns
Confidential | ©2014 Gentex Corporation

13. Sample Eligible Expenses Sample Ineligible Expenses
IRS Approved Expenses
FSA’s and HSA’s are both governed by the IRS, which tells us which expenses can be tax free and which expenses cannot
IRS Publication 502 is the official guide of what is covered and what is not.
Sample Eligible Expenses
Sample Ineligible Expenses
Expenses applied to your medical deductible
Gym memberships
Lasik surgery
Cosmetic Surgery
Dental expenses
Over-the-counter medications, unless prescribed by a physician
Vision expenses
Services outside the United States
Medicare Part B & Part D Premiums
Medicare Supplement Premiums
Expenses prescribed by your physician for treatment of a specific disease, such as:
Weight loss
Special education
Housing modifications
Personal use items
Confidential | ©2014 Gentex Corporation

14. IRS Approved Expenses - FSA
Using your FSA for qualified medical expenses:
If you use your debit card:
Swipe the card at your place of purchase
SAVE your receipts
If your purchase cannot be auto-substantiated, you will be asked to submit proof to bswift.
If you pay up front:
Submit for reimbursement using your bswift mobile app or the bswift portal
5 key items on your documentation needed:
Date of service
description of service
amount paid
patient name
provider
Confidential | ©2014 Gentex Corporation

15. IRS Approved Expenses – H.S.A.
Using your HSA for qualified medical expenses:
If you use your debit card:
Pay at the point of service
SAVE your receipts
If you pay up front:
Withdraw an equal amount from your HSA to pay yourself back.
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IRS Approved Expenses
Filing your Taxes with an HSA
Form 1099 SA:
You will receive this from your bank to file with your income taxes. It tells the IRS what was withdrawn from your HSA.
Form 8889:
You use this form to:
Report contributions made to your HSA during the year, and
Declare on your tax return whether some, all, or none of your HSA distribution was for qualified medical expenses
SAVE your receipts in the event of an audit
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Planning your 2019 Account
Which health plan will you choose?
Plan 1 or 2? Consider FSA to cover deductibles, prescription drug copays, and dental/vision expenses
Plan 3? Consider HSA to cover these expenses, but also for long term savings, tax savings, and the Gentex matching contribution.
If you are using the HSA for long-term and tax savings, also consider a Limited Health Care FSA. This special FSA allows you to let your HSA funds grow while using an FSA (with the same use-it-or-lose it rules) for DENTAL and VISION exclusively.
Limited Health Care FSA’s are a great option if you are contributing the maximum contribution to your HSA or have a known expense where you want immediate access (orthodontia).
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Planning your 2019 Account
How much can you reasonably expect to spend next year?
What are your known expenses?
Recurring medications
PCP and Specialist visits
Planned surgeries or pregnancies
Allergy injections
Medical supplies
Do you have special needs that are not covered by the health plan?
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Planning your 2019 Account
FSA Planning
Be conservative – up to $500 rolls over each year
If you have extra money in your account:
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20. Confidential | ©2014 Gentex Corporation
Planning your 2019 Account
HSA Planning
Contribute as much as you can afford
Take advantage of the Gentex match
100% Match up to $500 – Single
100% Match up to $750 – 2 or More Enrolled
Contribute the extra $1,000 if you are 55+
If you contribute the maximum, you can use the Limited Health Care Spending Account for dental and vision
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Questions?
Confidential | ©2014 Gentex Corporation