Health Savings Account (HSA) Frequently Asked Questions Information for Employees What is the difference between HSA Checking, HSA Savings and HSA CDs? Farm Bureau Bank offers our customers the opportunity of choosing the account type that meets their individual needs: HSA Checking provides an interest bearing account with unlimited check writing and debit card access. HSA Checking offers complete flexibility in paying your qualified health care expenses without the worry of withdrawal limitations. HSA Savings provides the highest rate of return on your contributions. Standard money market account withdrawal limitations apply: 6 pre-authorized withdrawals per month; 3 of which can be by check or debit card. See disclosures for full explanation of transaction limitations. HSA CDs allow accountholders to invest a portion of their HSA balance in a fixed rate Certificate of Deposit. This will allow accountholders access to a portion of their account, through HSA Checking or HSA Savings accounts, while earning higher interest on the CD portion of their balance. CD rates and terms apply. How can I make contributions to my FBB HSA? Deposits can be made by mail, direct deposit, electronically via ACH, wire transfer, or you can utilize Farm Bureau Bank’s Internet Banking System to initiate transfers from a non-Farm Bureau Bank account. What other investment options are available through FBB? Farm Bureau Bank currently offers an HSA Certificate of Deposit. You must retain a least $2,000 in your Farm Bureau Bank HSA Checking or HSA Savings account. Current CD rates and terms apply. The Bank plans to offer non-FDIC investment options by the 3rd quarter of 2007. What type of reporting does FBB provide? Farm Bureau Bank will furnish the tax forms 1099-SA and 5498-SA. The 1099-SA reports distributions and is sent out in January. The 5498-SA reports contributions and is sent out in May. How can I utilize the Internet Banking System to manage my HSA? You can utilize all of the features and functions of Farm Bureau Bank’s Internet Banking System to manage your H S A. This includes: Track transaction activity – Review monthly statements and check images, including detailed descriptions of electronic transactions. Pay medical expenses – using the online bill payment service. Make contributions - Automate and self generate transfers from non-Farm Bureau Bank accounts. How do I get additional debit cards/checks? You may contact us by phone, mail, email or fax to request an additional Debit card or order more checks. Why do you charge a fee for your HSA? Farm Bureau Bank charges a monthly administration fees on the HSA Checking and HSA Savings accounts due to the IRS reporting and additional maintenance of these accounts. However, in most cases your HSA can be exempt from the fee after the first year by maintaining a minimum balance in the account. (See disclosure) What do I do if I over-contribute to my HSA or use it for non-qualified medical expenses? You will need to contact us detailing the issue and we will work within the Federal guidelines to find a solution that meets your needs. Please notify us as soon as you become aware of the issue. How can I add or change authorized users and beneficiaries on my account? You can complete and send us the following form or simply put your request in writing and fax it to us at 210.637.4824 or mail it to us: Farm Bureau Bank 17300 Henderson Pass San Antonio, TX 78232 Information for Employers How can I make contributions to my employee’s account? Deposits can be made by mail, direct deposit, electronically via ACH, by wire transfer, or you can utilize our Cash Management System. What services do you offer for Employers? We offer the same great service for our customers as for employers such as; HSA Checking, HSA Savings and HSA CDs. What advantages does an HSA Plan offer for my Business? Employers have the potential to save money on health insurance premiums by switching to a high deductible health plan in conjunction with an HSA. In addition, contributions to your employees HSA could possibly feature tax benefits for your company. Can I pay the HSA fee for my employees upfront? You can pay the fee up front or include it as part of your contribution and the deduction is considered a qualified expense. For detailed information on HSA contributions visit www.hsafinder.com You can monitor and manage your HSA (Health Savings Account) activity as frequently as needed with our Internet Banking Services www.farmbureaubank.com and 24-Hour telephone access 1-800-492-FARM (3276).