Save smarter for healthcare

with a Wells Fargo HSA

October 2015

© 2015 Wells Fargo Bank, N.A. All rights reserved.

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Welcome!Today we’re going to talk about

How an HSA works

Five reasons to open an HSA

Basics for using an HSA

How an HSA works

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Health Savings Account (HSA)

HSA

Save Pay

Kellogg Community

CollegeHSA-qualifiedhealth plan

All plan costs are covered

You pay 100%

You pay a percentage

(coinsurance)

Deductible Out-of-pocket maximum

Use your HSA to pay your portion of your healthcare costs

How an HSA works

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Who can open and contribute to an HSA?Eligibility rules

Must be covered by an HSA-qualified health plan

• Certain deductible and out-of-pocket requirements

• 100% preventive care coverage

To open and contribute you:

Cannot open and contribute if you:

• Are covered by other health insurance*

• Are enrolled in Medicare

• Are eligible to be claimed as a dependent

• Special rules apply if you’ve received health benefits from Veterans Affairs or Indian Health Services

*Some exceptions apply.

Five reasons to open an HSA

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Five reasons to open an HSA

1INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

HSAs are for any age or stage

For today

Pay for qualified healthcare expenses

For tomorrow

Build a healthcare safety net

For the future

Invest your HSA funds for retirement1

1More than a spending account

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Fact HSA ≠ FSA

Myth HSA = FSAHealth Savings Account

Flexible Spending Account

Five reasons to open an HSA

1More than a spending account

2Money never expires

You own your HSA

The money carries over

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Even if they’re not covered by your health plan

You Yourspouse

Tax dependents

Use your HSA for

Five reasons to open an HSA

1More than a spending account

2Money never expires

3Use it for your family

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$100 earned in take-home pay

$70 in your pocket

$30 in taxes

$100 earned and saved in an HSA

$100 in your HSA

$100/month in your HSA

=$360/year in tax savings

HSA savings are tax-free

Five reasons to open an HSA

1More than a spending account

2Money never expires

3Use it for your family

4 Save on taxes

All tax references are at the federal level. State taxes vary. Please consult a tax advisor with questions. The 30% illustrative example assumes 25% federal and 5% state tax savings. Actual savings vary.

1111

1More than a spending account

2Money never expires

3Use it for your family

5More control and flexibility

4 Save on taxes

Add the difference to

your HSA

Your employer’s contribution

Build your HSA balance to+ =

This gives you:

+ A safety net for healthcare

+ No change in take-home pay

+ Flexibility to spend only when you need care

Five reasons to open an HSA

Basics for using an HSA

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Online Bill PayGreat for invoices

Pay another wayAnd reimburse

yourself at any time

Wells Fargo HSA Debit Card

Easiest way to pay

Convenient payment options

Using your HSA for qualified expenses

Qualified healthcare expenses

Qualified

Doctor’s visits

Specialty careex. Chiropractor, Cardiologist

Prescriptions

Dental health

Eye health

Medical supplies

You are responsible for determining which expenses are qualified. Wells Fargo does not monitor your expenses. List is not complete.

Typically not qualified

Cosmetic surgery

Over-the-counter meds Unless you have a prescription

Teeth whitening

Vet bills

Learn more at

wellsfargo.com/

hsaqualifiedexpenses

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Individual coverage

$3,350

Family coverage

$6,750

If you’re age 55+

Can contribute an extra $1,000/year

Set up your savings

1Your personal contribution limit may be lower than IRS maximums. Please consult your tax advisor with questions. 2Transfer funds from an existing HSA or make a one-time transfer from an IRA. IRA transfers count toward the annual limit. Please consult your tax advisor with questions.

2016 contribution limits1

These limits include any money your employer adds to your account

Ways to save

Payroll deductions

Your easiest option

Other options:

• Transfer from an IRA or HSA2

• Regular or one-time contributions online

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Saving in your HSAEvery little bit counts

$3,000 $6,000 $9,000

$50

per month

$6,000 $12,000 $18,000

$100

per month

$15,000 $30,000 $45,000

$250

per month

If you save: In 5 years In 10 years In 15 years

Set a savingsgoal based on

Last year’s health expenses

Your health plan’s deductible

Expenses that are coming up

Potential healthcare costs in retirement

Assumes all funds are saved in the FDIC-insured deposit account portion of the HSA. Does not reflect interest.

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Sweeten your retirement strategyInvest your HSA dollars

The average retired couple today will need about $250,000 for healthcare expenses in retirement.1

Did you know

Use an HSAto prepare for those expenses

1Individual situations vary. Source: Center for Retirement Research at Boston College.

Invest in a broad range of mutual funds

Access to HSA funds, even if

they’re invested

No taxes on investment earnings

INVESTMENT PRODUCTS: NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE

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Anytime, anywhere access to your HSA

Mobile and text banking

Wells Fargo Online®

Dedicated customer

service team

Available 24/7 starting in 2016!

By phone At home On-the-go

Already a Wells Fargo customer?

Manage your HSA with your other accounts

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Get started

Enroll in your company’s HSA-qualified health plan

Get more flexibility and control

Set up automatic pre-tax payroll deductions

Easy way to build your balance

Discover how an HSA might fit your needs

wellsfargo.com/hsatool

Look for your HSA materials in the mail

Including your HSA debit card and PIN

Questions?

The information provided is educational in nature, not advice. Consult a tax or investment professional for advice.

Take advantage of an HSA

Enroll Benefits enrollment begins [enter date]

Discover HSA Expert interactive toolwellsfargo.com/hsatool

Helpful videoswellsfargo.com/hsaoverview

Call HSA-dedicated customer service1-866-884-7374

Monday-Friday: 6:00 a.m.-10:00 p.m. Central Time

Will be available 24/7 starting in 2016!