FURTHER Health Savings Account Instruction Manual

FURTHER Health Savings Account

Specifications

• Product: Health Savings Account (HSA)
• Provider: Further
• Tax Advantages: Tax-deductible contributions, Earn interest tax-free, Pay for qualified medical tax-free

Product Usage Instructions

What is a Health Savings Account (HSA)?

An HSA is a tax-advantaged member-owned account that allows you to save pre- tax dollars for future qualified medical expenses. The money in your HSA belongs to you and can be used tax-free for medical expenses defined by the IRS.

Is an HSA Right for You?

• Enrolled in an HSA-qualified health plan
• Cannot be claimed as a dependent on someone else’s taxes
• No other health coverage
• Can contribute money for healthcare expenses
• Not enrolled in Medicare
• Want to be prepared for unexpected healthcare needs

How an HSA Works with Your Eligible Health Plan

• An HSA complements your health plan by allowing you to save pre-tax money from your paycheck to cover qualified medical expenses, reducing your taxable income, and providing financial protection for unexpected healthcare needs.

Five Ways an HSA Can Help You Save for Your Future

1. Money is not taxed, reducing taxable income
2. No “use it or lose it” rule, funds belong to you even if circumstances change
3. Earn interest tax-free and access investment options when the balance reaches thresholds
4. More flexibility in using funds for qualified medical expenses beyond plan coverage
5. Manage funds to even out medical expense highs and lows

All Systems Go!

Use your HSA for qualified medical expenses that your plan doesn’t cover, ensuring your healthcare needs are met without the additional tax burden.

Frequently Asked Questions (FAQ)

What are qualified medical expenses?

Qualified medical expenses are defined by the IRS and include a wide range of healthcare costs such as doctor visits, prescription medications, dental care, and more. Consult IRS guidelines or your HSA provider for a detailed list.

Can I invest my HSA funds?

Yes, once your balance reaches certain thresholds, you can access investment options to grow your HSA funds. Consult your HSA provider for details on investment opportunities.

Health Savings Account

• Welcome to your Health Savings Account (HSA) from Further. As one of the largest, most experienced, and trusted HSA administration partners in the nation, we’re making these accounts intuitive, accessible, and pain-free.
• Everything you need is just a tap, click, call, or swipe away.
• If you have questions or need more information about your HSA, our skilled customer service team is ready to help.
• Make tax-deductible contributions
• Earn interest tax-free
• Pay for qualified medical tax-free

Introducing the HSA

• An HSA is a tax-advantaged member-owned account that lets you save pretax dollars for future qualified medical expenses. It belongs to you and the money is yours to keep, even if you change jobs or retire.
• You don’t pay any taxes on the money you put in or take out, as long as you use it for medical expenses as defined by the Internal Revenue Service (IRS).
• Watch the “What is a Health Savings Account (HSA)?” video.

Is an HSA right for you?

• You’re enrolled in an HSA-qualified health plan.
• You can’t be claimed as a dependent on someone else’s taxes.
• You have no other health coverage.
• You can contribute some money to save or pay for health care expenses.
• You aren’t enrolled in Medicare.
• You want to be ready when you have unexpected healthcare needs.

How an HSA works with your eligible health plan

• Medical premium (your payment for health insurance)
  • Premiums often cost less for HSA-qualified plans.
• Out-of-pocket costs you pay for health care (up to deductible and coinsurance)
  • Consider how much you’ll spend on health care next year. Put that money into an HSA pre-tax from your paycheck.
• HSA contributions
  • Putting money into an HSA helps you prepare and pay for qualified medical expenses using tax-free funds. If you don’t need the money, save it for future needs.
• Out-of-pocket maximum
  • Once you reach your out-of-pocket max, everything is 100% covered. This protects you from a major financial crisis should unexpected healthcare needs arise.
• Use this worksheet to determine your eligibility and decide how much to contribute.

Five ways an HSA can help you save for your future

1. Money is not taxed. Money goes into your HSA pretax. That reduces your taxable income saving you money on your qualified medical expenses.1

2. No “use it or lose it” rule. Money in your HSA belongs to you, even if you change jobs or health plans, or retire.

3. Invest and grow your money. Your money earns interest tax-free, from day one. When your Base Balance reaches $1,000, you can open a basic investment account with access to 30+ mutual funds. When your basic investment account assets exceed
   $10,000, you can choose to invest funds with a self-directed brokerage account through Charles Schwab.2

4. More flexibility and choice. You can use your HSA dollars for qualified medical expenses beyond what your plan covers, allowing you to purchase these services tax-free even if they aren’t covered.

5. Even out medical expense highs and lows. Since you manage your funds, you can save HSA money when you’re healthy so it’s ready when you need it.

6. HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize HSA funds as tax-deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules.

7. Investments are subject to risk, including the possible loss of the principal invested, and are not FDIC or NCUA insured or guaranteed by HealthEquity, Inc. Investing through the HealthEquity investment platform is subject to the terms and conditions of the Health Savings Account Custodial Agreement and any applicable investment supplement. Investing may not be suitable for everyone and before making any investments, review the fund’s prospectus

8. Refer to the hellofurther.com HSA page for a list of HSA-eligible services and products

All systems go!

Use your HSA for these:

•  Qualified medical expenses that your plan doesn’t cover
• Over-the-counter medications, supplies, and some feminine hygiene products
• Copayments, coinsurance, and prescription drugs
• Dental and vision care expenses
• Some long-term care premiums
• NOTE: It’s important to save all your receipts to validate expenses, as required by the IRS.

Heads up!

You can’t use your HSA for these:

• Health insurance premiums
• Costs that aren’t considered qualified medical expenses as defined by the IRS
• Use our eligible expenses search to see what else you can pay for with an HSA.

The total amount you can put in an HSA tax-free:

Catch Up

(age 55+)

| $1,000| $1,000

• His annual salary: $58,000
• His annual HSA contribution: $2,600
• His taxable income after HSA contribution: $55,400
• His estimated tax rate: 25%
• His estimated tax savings: $650
• When Jim incurs a $650 health care bill, it costs him nothing when factoring in the tax savings.
• Calculate your potential savings with an HSA.

1. Scenarios, results, and calculations are for illustrative purposes only. Individual results may vary.
2. Member must open a Further HSA account if not automatically enrolled by their employer based on eligible health plan choice. Please consult your plan documents.
3. The Further Visa Debit Card is issued by The Bancorp Bank, according to a license from Visa U.S.A. Inc., and can be used for qualified expenses wherever Visa debit cards are accepted.

Select an HSA-eligible health plan at enrollment2

• Further will send your Further Visa® Debit Card and Spending Account heI.D.a (SAlth p I.D lan at .) number by mail. enrollment
• Use your SA I.D. number to set up your online access.
• Download the Further app or use the website to view and manage your account.

We’re here for you

• If you can’t find the answers you’re looking for online, give us a call.
• You can talk with one of our specially trained HSA customer service representatives.
• 1.800.859.2144
• 7 am to 8 pm CST, Monday-Friday
• hellofurther.com

Documents / Resources

| FURTHER Health Savings Account [pdf] Instruction Manual
Health Savings Account, Health Savings Account, Account
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