A Health Savings Account (HSA) is a tax-advantaged savings vehicle you can use to set aside pre-tax payroll dollars for future healthcare expenses that roll over from year to year. The rules are similar to those that apply to individual retirement accounts. Funds in the HSA can grow tax-free and be used tax-free for qualified healthcare expenses. Using the funds for non-qualified expenses can result in IRS penalties. Eligible expenses are typically those allowed under a Flexible Spending Account (see FSA Qualified Expenses HERE).

There are specific tax laws that apply to HSAs. Here are the most common that you should be aware of:
	You must participate in a Qualified High Deductible Health Plan (HDHP) in order to contribute to an HSA in the current tax year. In 2007, the minimum deductible is $1,200 per person. Remember: you do not need to be on a HDHP in order to use HSA funds that you contributed in past years.
	You cannot use your Flexible Spending Account (FSA) for medical, prescription or over-the-counter expenses under the Deductible ($1,200 in year 2007). You can still use your FSA for dental and vision.
	Annual Contribution Limits:
	2007 2008 Single $2,850 $2,900 Family $5,650 $5,800 Age 55+ Catch Up $800 $900

Fifth Third Health Savings Accounts
Fifth Third offers HSA Customer Service for HSA banking questions. Call 800-472-5265, option 1. Their hours of operation are Monday through Friday, 7am to 12am EST.

General FAQs

Eligibility

Contributions

Paying for Qualified Medical Expenses

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What is a Health Savings Account?
A Health Savings Account (“HSA”) is a trust or custodial account created exclusively for the benefit of the account holder and is subject to rules similar to those that apply to individual retirement accounts (IRAs).  An HSA also has the added benefit of allowing you to pay for qualified medical expenses out of your HSA on a pre-tax basis.

What is the Fifth Third Health Savings Account (“HSA”)?
The Fifth Third HSA is a personal checking account.

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ELIGIBILITY

How do I know if I am eligible to contribute to an HSA Account?
You must be a participant in a High Deductible Health Plan (“HDHP”).  In order to be eligible to contribute to an HSA Account, you cannot be covered by any other health plan that is not an HDHP (i.e. – you cannot also be covered by your spouses insurance), you cannot be covered under Medicare, and you cannot be claimed as a dependent on another person’s tax return.

What is a High Deductible Health Plan (“HDHP”)?
 A HDHP is an insurance plan that has a minimum deductible of $1,100 annually for individual coverage ($2,200 minimum for family coverage).  Plans with co-pays are generally ineligible.  Maximum annual out of pocket cannot exceed $5,500 - individual / $11,000 - family.  You will want to verify with your HSA administrator and/or with your employer as to whether or not your insurance plan qualifies you to contribute to an HSA.

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CONTRIBUTIONS

How Much Can I contribute (deposit) into my HSA?
Annual contributions (deposits into your account) that you are permitted to make into your HSA account are limited to the federal maximum (indexed annually, for 2007 the amount is $2,850 individual / $5,650 family).

Also, individuals that will be at least 55 years of age by the end of a tax year may also be eligible to make additional “Catch Up” contributions into their HSA.

New Rules for 2007: If your coverage changes from Single to Family or vice versa, you may need to pro-rate amounts paid into your HSA to avoid adverse tax consequences.

If you become ineligible to participate in an HSA during the tax year in which you have contributed to an HSA, you may also be subject to additional taxes and/or penalties. Please contact your tax advisor should you have this situation.

Do employer contributions into my HSA account impact what I am allowed to contribute?
Yes, the annual maximum is a set for each individual/family. This does not include “qualified rollovers” allowed by law.

Aren’t HSA rules similar to IRA rules where I can make a deposit into my HSA account up to April 15th and have it count towards my prior year tax return?
Yes, as long as you did not contribute up to the maximum that you were permitted in the prior tax year, then you could make a contribution into your HSA account, up until April 15th and have it count towards your prior tax return.

Can I make prior tax year deposits to my HSA in a banking center?
No, you cannot make these contributions at a banking center.  They must be submitted centrally.  This is so that the deposit can be properly reflected on your tax documents.  Fifth Third has no way of knowing that a deposit made in a banking center is for a current year contribution versus a prior year contribution that was payroll deducted.  Therefore, all contributions made in a banking center will be treated as current year contributions.

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PAYING FOR QUALIFIED MEDICAL EXPENSES

What is a Qualified Medical Expense?
Qualified medical expenses are defined by the IRS.  It is your responsibility to determine whether a medical expense is qualified.  Using funds from your HSA for non-qualified medical expenses can result in IRS penalties. 

How do I pay for my qualified medical expenses out of my HSA?
It is recommended that you use your HSA Debit MasterCard to pay for all of your qualified medical expenses, whenever possible.  You will find that most of your service providers accept MasterCard.  Transaction descriptions will show on your account statement.  This will also make it easier to match up to your receipts. You may also purchase the checks and are permitted to write one check per month at no charge; each additional check is $2.00.
 
What if my medical service provider does not accept MasterCard?
The Fifth Third HSA provides you with most of the features of any of our traditional checking accounts.  This means that you can use our on-line billpayer, use an ATM, or write a check or make a withdrawal at one of our banking centers to pay for qualified medical expenses.

Does my HSA Account have to have enough money before I can pay for a qualified medical expense?
Yes, this is a personal checking account in your name.  So, the funds must be in your account before you can pay for an expense.

What if funds are not available in my HSA Account when I incur a qualified medical expense?
If you do not have enough money in your HSA account to pay for a qualified medical expense you will need to pay for the expense by some other means.  Once the money is in your HSA account, you can withdraw the amount that you personally paid for the expense to reimburse yourself.

When I make a withdrawal out of my HSA account to pay for a qualified medical expense do I have to pay taxes on it?
No, as long as you use your HSA account only for qualified medical expenses, you should never have to pay taxes on the money.  

Who is responsible for ensuring that I am only using my HSA account for qualified medical expense?
How you use your HSA account is solely between you and the IRS.  You will want to save all invoices and statements that will support the withdrawals out of your HSA account.  You should also consider using your HSA debit MasterCard to pay for qualified medical expenses so that the transaction is detailed on your HSA account statements.

What if I do not use my HSA account for qualified medical expenses?
If you use your HSA account for expense other than for qualified medical expenses you can subject yourself to IRS penalties.  Also, inappropriate use of your HSA account may leave you without the money to pay for your qualified medical expenses should you or your family ever need it.

What happens to any balances in my HSA account that I do not use by the end of the year?
Unlike Flexible Spending Accounts that are “use it or lose it”, unused contributions in your HSA account will accumulate tax-free until retirement.

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FIFTH THIRD'S ON-LINE BANKING

Do I have full use of Fifth Third’s On-Line Banking (www.53.com)?
Yes, your Fifth Third HSA Account provides you with the same access to Fifth Third’s on-line banking that we give to all of our customers.

How do I sign on to Fifth Third Bank’s On-line Banking?
If you already use Fifth Third Bank’s on-line banking, you will see your Fifth Third Bank HSA account with all of your other Fifth Third Bank accounts, simply log-on as you always do.  If you are new to Fifth Third, visit www.53.com.  Once you get to the Fifth Third Bank’s sign on page, click on "sign on", then on  "personal accounts".  Your “Access ID" is your 16-digit debit MasterCard number and your “Password" is the PIN number that was mailed to you.

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OTHER INFORMATION

Do I receive a monthly account statement?
Yes, you will receive a monthly statement on your HSA account, just like what is provided to all of Fifth Third’s checking account customers.

What other information is readily available to me on the HSA account?
The IRS has provided a list of Question and Answers on their website.  This is a great additional source of information on HSA accounts. 

Location of IRS Q&A’s:
 http://www.irs.gov/irb/2004-02_IRB/ar09.html
 http://www.irs.gov/irb/2004-33_IRB/ar08.html

Why am I required to have a minimum balance of $2,000.00 before I have the option of attaching a brokerage account to my HSA account?
Having a minimum balance in your HSA checking account will provide you with the funds that you need to pay for medical expenses out of your HSA checking account.  

At Fifth Third's discretion, they may change the interest rate and annual percentage yield "APY" at any time on your account. Your interest begins to accrue no later than the business day we received credit for the deposit on non-cash items (for example - checks).

Interest on your account will be compounded continuously and credited back on your monthly statement date. Fifth Third uses a daily balance method to calculate interest on your account. This method applies a daily periodic rate to the balance in your account each day.

Should you happen to have a brochure that you may think is out of date, or if you just want to verify current HSA checking account interest rates, you can contact Fifth Third Bank customer service (800-972-3030) to receive the current rate that the bank is paying on HSA account balances.

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TAX REPORTING

What tax forms will I receive with my HSA Account?
You will be receiving two annual tax forms from Fifth Third Bank on an annual basis.  The 1099-SA will provide you with a summary of the distributions (withdrawals) out of your HSA and the 5498-HS will provide you with a summary of the contributions (deposits) that you have made into your HSA account.
You will need to complete Form 8889-SA when you do your taxes.  This form can be obtained from the IRS website (www.IRS.gov) or from your tax consultant.

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ACCOUNT INFORMATION

	No Monthly Account Fee
	No Account Opening Fee
	No minimum balance requirement
	Free HSA Debit MasterCard
	Tiered premium rates of interest
	One check per month is free.  A fee of $2.00 will be charged per each additional check clearing your account during any one month.
	Checks can be ordered at a cost of $20.00 per 150 checks
	Unlimited Fifth Third Jeanie ATM/POS Transactions
	No annual fee on your HSA debit MasterCard.
	Jeanie Telephone Banking / Internet Banking – no charge
	No minimum balance is required to open your HSA Account.
	For other fees that apply to your HSA Account, please refer to the Fee Schedule in the Rules and Regulations Applicable to All Fifth Third Accounts and Cards
	$10.00 fee for roll-over contributions out of HSA account.
	1st deposit must be made within 90 days of opening your HSA account, or your account will be closed.
	2nd Interest is paid only on days the balance is $200 or above.
	3rd You may be charged a terminal fee by another bank when using your Fifth Third card at their ATM when making cash withdrawals and/or balance inquiries.

Download a copy of our Employee Educational Brochure for HSAs (PDF) HERE.

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