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Overview: Intended for advising employees where to look for year-to-date contribution amount and remind them of their ability to contribute for the first few months of the current year.

Maximize the Tax Benefit of Your Health Savings Account by Maximizing Your Contributions

Tax time will soon be upon us again. Below are some tips to help you understand how to maximize the tax benefit of your Optum BankSM, Member FDIC, health savings account (HSA) and the tax forms you’ll need to be familiar with:

• The IRS maximum HSA contribution limits for 2014 are $3,300 for individual coverage and $6,550 for family coverage.

• In addition to the standard HSA annual contribution limits, account holders age 55 and older can make catch-up contributions of $1,000 each year.

• Contributions for the year 2014 can be made until April 15, 2015, the deadline for filing tax returns for the year 2014.

• You are responsible for monitoring the amount deposited into your HSA each calendar year.

o Your contribution limits may vary depending on how many months you have coverage under the plan. For details on how to calculate your limit, refer to IRS Publication 969, “Health Savings Accounts and Other Tax-Favored Health Plans,” available at .

View your annual HSA contribution amount.

If your contributions have been made through payroll, you can view your annual contribution amount on the Form W-2 your employer sends out in January.

Your monthly bank statement provides the year-to-date contribution amount for your account (this amount includes any prior year contributions made in 2014 for 2013). On the “HSA Summary” homepage, click on “View Statements and Documents” from the right menu options to view your monthly statement.

Filing the Appropriate Forms at Tax Time

You must file IRS Form 8889 with your IRS Form 1040 on your federal income tax return for any year in which you make contributions or withdrawals from your HSA. Forms 8889 and 1040 are available at . Contributions you elect through payroll deductions are pre-tax and should not be included on line 2 of Form 8889. Any additional contributions you make on your own on an after-tax basis can be reported here.

Box 12 on your Form W-2 will show all contributions your employer made to your HSA, including your pre-tax contributions if any. Use the amount shown on Box 12 from your W-2 on line 9 of Form 8889. Check out the Optum Bank Tax Resource Center for more information.

IRS Form 1099-SA provides you with the total distributions that were made from your HSA and is available at the end of January. You will receive a separate 1099-SA for each type of distribution you had in that tax year. The five types of distributions are normal, excess contribution removal, death, disability and prohibited transaction. If you did not have distributions during the tax year, you will NOT receive a 1099.

Understanding your State’s HSA Rules

Some states may have different tax rules affecting HSAs. You should contact your state revenue department for more information or consult a tax advisor.

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Health savings accounts (HSAs) are individual accounts offered by Optum BankSM, Member FDIC, and are subject to eligibility and restrictions, including but not limited to restrictions on distributions for qualified medical expenses set forth in section 213(d) of the Internal Revenue Code. State taxes may apply. Fees may reduce earnings on account. This communication is not intended as legal or tax advice. Please contact a competent legal or tax professional for personal advice on eligibility, tax treatment, and restrictions. Federal and state laws and regulations are subject to change.

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