Health Savings Account Enrollment Materials

Health Savings Account Enrollment Materials



P. O. Box 73688 North Chesterfield, VA 23235 Phone: (888) 354-0697Fax: (804) 726-1570

2020

For more information or to enroll online:

(888) 354-0697 Monday ? Thursday 8:30 a.m. ? 7 p.m. and Friday, 8:30 a.m. ? 5 p.m. ET

Simply put, an HSA is a tax-favored health savings account for people with a qualified high-deductible health plan. An HSA provides triple tax savings.

Contributions are tax deductible. Growth in interest and earnings are tax free. Withdrawals for eligible medical expenses are

tax free.

HSA Eligibility

Federal regulations require you to meet all of the following eligibility requirements in order to open and contribute to an HSA:

Covered under a qualified high deductible health plan on the first day of the month.

Not covered by any other health plan, including your spouse's health insurance.

Not covered by your own or spouse's medical flexible spending account (FSA).

Not enrolled in any part of Medicare or Tricare. Have not received Veteran's health benefits in

the past 90 days. Not claimed as a dependent on another

person's tax return.

Annual Contribution Limits

Single Family Catch up (age 55+)

2020 $3,550* $7,100* $1,000**

*Maximum includes employer contribution

**Catch up provision if you are age 55 or older by December 31 of the tax year

Investment Options

Our members have the option to access the money via a debit card or invest in a portfolio of funds whereby the money can potentially grow tax free, or both.

Vanguard? No-Load Mutual Funds Choose from the 23 Vanguard? mutual funds offered No minimum contribution required Low expense ratios No transaction or redemption fees Not FDIC insured

Debit Card APY varies based on account balance FDIC insured No monthly low-balance fee

Accessing & Saving HSA Funds

An HSA is much like a savings account, but the funds are reserved just for eligible healthcare expenses. Once an eligible medical or prescription expense is incurred, you have the following two options:

1) Pay from your HSA Use with your debit card (if elected), or Request a withdrawal from your Vanguard? funds

OR

2) Pay out of pocket and let your HSA grow There are no time limits on reimbursements

Tip: Remember to keep your receipts so you can reimburse yourself in the present or future for eligible medical expenses. View the IRS Publication 502 for a list of all eligible medical expenses.

Three simple steps to get started

1. Confirm your health insurance plan is HSA qualified.

2. Select your investment options -- Vanguard? funds, debit card or a combination of both.

3. Complete the HSA enrollment form or enroll online at .

Vanguard? No-Load Mutual Funds

Available at HealthSavings are 23 Vanguard? funds each having distinct investment management objectives, strategies, risks and policies. The Vanguard? Group provides investors with access to some of the leading money managers from around the world. They utilize a multi-manager approach to investing to provide greater diversification within each portfolio. Read the current prospectus on funds that interest you (available at ) for more information prior to investing. NOTE: For your HSA, you are not subject to the normal Vanguard? minimum investment requirements.

Securities offered through The Vanguard? Group, Member NASD SIPC. Security products: Not insured by FDIC nor any federal government agency; may lose value; not a deposit of or guaranteed by the bank or any bank affiliate.

Least Risk

Vanguard? Prime Money Market Fund Investor Shares Vanguard? GNMA Fund Investor Admiral Shares Vanguard? LifeStrategy Income Fund Vanguard? Total Bond Market Index Fund Admiral Shares Vanguard? LifeStrategy Conservative Growth Fund Vanguard? Balanced Index Fund Admiral Shares Vanguard? LifeStrategy Moderate Growth Fund Vanguard? STAR Fund Vanguard? WindsorTM II Fund Admiral Shares Vanguard? LifeStrategy Growth Fund Vanguard? 500 Index Fund Admiral Shares Vanguard? Total Stock Market Index Fund Admiral Shares Vanguard? Social Index Fund Investor Shares Vanguard? Selected Value Fund Investor Shares Vanguard? MorganTM Growth Fund Admiral Shares Vanguard? Mid-Cap Growth Fund Admiral Shares Vanguard? International Growth Fund Admiral Shares Vanguard? Mid-Cap Index Fund Admiral Shares Vanguard? US Growth Admiral Vanguard? Total International Stock Index Admiral Shares Vanguard? Extended Market Index Fund Admiral Shares Vanguard? Strategic Equity Fund Vanguard? Small-Cap Index Fund Admiral Shares

VMMXX VFIJX VASIX VBTLX VSCGX VBIAX VSMGX VGSTX

VWNAX VASGX VFIAX VTSAX VFTSX VASVX VMRAX VMGMX VWILX VIMAX VWUAX VTIAX VEXAX VSEQX VSMAX

Most Risk

Vanguard? Mid-Cap Growth Fund Investor Shares

VMGRX

Vanguard, Morgan, Explorer and Windsor are trademarks of the Vanguard? Group, Inc. All other marks are the exclusive property of their respective owners.

Fees

Account Set-Up Fee

No charge

Administration Fee

$18 per year

Custodial Fee Quarterly Statements

6.25 basis points per quarter (i.e., $0.625 per $1,000 every three months). Fees will be deducted from the account balance quarterly.

No charge

Examples of Qualified Expenses

Acupuncture Alcoholism (rehab/treatment) Ambulance Annual physical exam Artificial limbs/teeth Birth control Body scans Chiropractor Contact lenses/solution Crutches Dental treatments Eye glasses/surgery Hearing aids Long-term care expenses/premiums Medicines prescribed (not imported) Nursing home Nursing services Optometrist Orthodontia Oxygen Stop-smoking programs Surgery (not cosmetic) Therapy Transplants Weight loss program (prescribed by physician for a specific disease) Wheelchairs

Examples of Non-Qualified Expenses

Concierge services Elective cosmetic Funeral services Gym memberships/dance lessons Nonprescription medicine (OTC), unless prescribed

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