HEALTH SAVINGS ACCOUNTS

Ben offers a full range of products and services at the speed of life.

Would an HSA benefit me?

A Health Savings Account is a flexible and useful savings vehicle with significant advantages.

SAVINGS ADVANTAGES:

1. You may pay a lower premium with an HDHP
2. HSA contributions will accumulate over the years
3. The interest is compounded and credited monthly
4. There are no penalties if you don't use the money
5. Use HSA funds for retirement, penalty free, at age 65 (non-qualified medical and/or other expenses subject to income tax)

TAX ADVANTAGES:

1. Contributions can be made with pre-tax dollars
2. All interest earnings are tax-deferred
3. Qualified medical expenses are tax free

OTHER ADVANTAGES:

1. Pay for qualified expenses directly, out-of-pocket
2. Pay for qualified expenses not otherwise covered
3. Save for medical expenses should you become unemployed
4. Save for unexpected medical bills or supplies
5. Save for long-term health care and/or insurance
6. Bridge the gap between Retirement & Medicare

How much can I contribute?

MAXIMUM CONTRIBUTION AMOUNTS:

For Single HDHP, maximum to HSA = $2,900/year*
For Family HDHP, maximum to HSA = $5,800/year*

* A full year's contribution may be made to an H S A even if you become eligible during the year, even if you start in December. If you contribute the full year's contribution, but are eligible only part of the year, you will be subject to taxes and penalties if you don't remain eligible for 12 months after the year in which you first became eligible. Contributions may be made as late as April 15th of the following calendar year.

NOTE:

Multiple contributions may be made by you, your employer, or both so long as they do not exceed the allowable maximum contribution amount. Amounts adjusted annually for inflation.

CATCH-UP CONTRIBUTIONS:

Individuals age 55 and older who are not yet enrolled in Medicare may also make the following additional maximum catch-up contributions:

2008: $900       2009 & after: $1,000

What are "qualified" expenses?

Qualified medical expenses are as permitted under the federal tax law (for a complete list, see IRS Pub 502).

FOR EXAMPLE:

1. Most medical care and services
2. Dental care, vision care
3. Over the counter drugs such as aspirin
4. Medications prescribed by your doctor
5. Qualified long-term care insurance premiums
6. COBRA continuation coverage
7. Medicare premiums and expenses
8. Health coverage while receiving unemployment

NOTE:

You may pay for qualified medical expenses for you, your spouse and/or dependent children, even if they are not covered by your HDHP. Also, "Preventative Care" such as annual exams, immunizations, screening tests, pre-natal care, well-child care, mammograms, pap smears, obesity weight-loss and tobacco cessation programs are considered "first dollar" expenses, paid by your HDHP, so payment for these items would not come out of your HSA.

How are expenses paid?

Pay directly, out-of-pocket from your Health Savings Account with HSA checks, an HSA VISA Debit Card (to debit your account directly or to withdraw cash), or use free Online Banking with unlimited Bill Payment!

ALLOWABLE EXPENSES PER YEAR:

For Single HDHP, maximum from HSA = $5,600/year
For Family HDHP, maximum from HSA = $11,200/year

What if expenses don't qualify?

Any amounts used for something other than to pay for qualified medical expenses are taxable as income. In addition, these funds are subject to a 10% tax penalty unless the participant is 65 or older, or is disabled.

How are expenses reported?

Participants must report contributions and distributions on their individual income tax returns. Invoices and receipts should be kept on file to support payments. Contributions made by an employer are reported on their employee's W-2 and on the company's own business tax returns. Likewise, the Bank will report all HSA activity.

What about life changes?

Health Savings Accounts are "portable" which means that you will always own the account.

EVEN IF YOU:

1. Get married
2. Get divorced
3. Change jobs
4. Become unemployed
5. Move to another state
6. Change your medical coverage

Can my HSA have a POA?

You may add a Power of Attorney (POA) to manage, pay expenses from, make contributions to, or close the account on your behalf. The POA's rights expire upon your death.

What if I pass away?

If married, your spouse becomes the owner and can use it as if it were his/her own HSA. If not married, the account will no longer act as an HSA and will pass on to the beneficiary or become part of your estate (subject to applicable taxes).

Who needs to know?

• Small business owners and self-employed individuals
• Unemployed and recently retired individuals under 65
• College students (no longer claimed as dependents)
• Full & part-time employees of any size company

How do I open my HSA?

If you are enrolled in an HDHP, simply visit one of our branches to open your HSA.

The minimum deposit (contribution) required to open an HSA is $10.00. The minimum balance to earn the Annual Percentage Yield (APY) is $10.00. APYs are variable, subject to change any time and assigned to the following balance tiers:

** See additional transaction fees under "Important Disclosures"

$10.00 - $999.99 $1,000.00 - $14,999.99 $15,000.00 and above

Check HSA Rates

What is an HSA?

A Health Savings Account (HSA) is a special account, funded by contributions from the participant (and/or their employer) to pay for current and future qualified medical expenses not covered by their HDHP (due to a high deductible or coverage limitations). HSA Contributions are significantly tax-advantaged and accumulate with interest over the years.

May I participate?

Yes, you may open a HSA if you...

1. Are old enough to open an account (18)
2. Are enrolled in an HSA-qualified HDHP
3. Are not covered by any other health plan
4. Are not claimed as a dependent on taxes
5. Are not yet enrolled for Medicare benefits

NOTE:

If you are already enrolled for Medicare, you may not open a Health Savings Account. However, if you open an HSA before enrolling for Medicare, you may use HSA funds without penalty, while you are on Medicare.

What is an HDHP?

A High Deductible Health Plan (HDHP) is an individual or family health insurance plan with a high out-of-pocket deductible. Monthly premiums are typically lower than other plans.

Enrolling for an HDHP?

If your employer doesn't offer HDHPs, please refer them to Benjamin Franklin Bank's Investment & Financial Services Division. You will likely save both your employer and yourself money. If you are unemployed, self-employed or retired, you may get a High Deductible Health Plan from a Benjamin Franklin Bank Investment & Financial Services Broker*** either at the branch or by appointment in your own home.

To set up a complimentary appointment, please call Benjamin Franklin Bank's Investment & Financial Services Division*** at 508.520.8097. Together, we'll discover whether an HDHP with an HSA could make "cents" for you!

Important Disclosures

**HSA balance inquiries in the branch, online or by ATM are free. VISA Debit Card point-of-sale purchases using a pin number are $1.50 each. Using the VISA Debit Card as a credit card (requiring a signature) for point-of-sale purchases is free. Personal Online Banking transactions and Online Bill Payment are free. You will receive 50 HSA checks at no charge. You may also write an unlimited number of checks for free. The purchase price of re-ordered checks depends on the amount ordered. Account statements will include images of all checks paid. Removals of excessive contributions (made over the allowable maximum per year) are $20.00 each. An additional VISA Debit Card may be requested for a fee of $5.00. The fee to replace a lost VISA Debit Card is $10.00. The fee to set-up and close an HSA is $25.00.

*** Benjamin Franklin Bank Investment & Financial Services Brokers are representatives of New England Securities Corporation (member FINRA/SIPC). Security products are offered (only) through registered representatives of New England Securities Corporation, a broker/dealer. Securities activities are supervised from New England Securities Corporation's branch offices at: One Exeter Plaza, Boston MA 02116. Benjamin Franklin Bank is not affiliated with New England Securities Corp. Investment products are not FDIC insured, not deposit products, not guaranteed by the Bank, not a condition of any Bank product or service and may lose value.