Benefit Brokers and Agents

Simsbury Bank offers a premium interest, fully qualified tax advantaged Health Savings Account
(HSA) that can be combined with any insurer’s qualified High Deductible Health Plan (HDHP). Please also refer to the Business Owner page.

Why should you recommend a Simsbury Bank HSA to your clients?

Simsbury Bank is a highly respected local financial institution known for its commitment
to customer service and a complete array of product offerings. Thousands of residents
in the Farmington Valley and central Connecticut are customers of Simsbury Bank and
many prefer to do all their banking with a single institution because they find us convenient
and they appreciate the advice we provide. For our customers, the ability to use their
own bank for their new HSA is an important consideration in whether to enroll in an HSA
plan. Participants in an HSA who are not already Simsbury Bank customers may prefer
to be given the option to use a bank near their home or office. And, for many that bank is
Simsbury Bank.

How do participants use an HSA?

When participants open a high interest Simsbury Bank HSA Checking Account, they can
receive a debit card, checks or both. They may deposit funds into this account. Some plan
sponsors choose to provide additional contributions to the HSAs. When paying for qualified
medical expenses participants simply:

• use a debit card
• write a check
• withdraw funds from an ATM
• or make online bill payments.

An extra debit card is available free of charge for a spouse.

Simsbury Bank also offers an HSA CD so that as participants’ HSA balances grow, or they roll over funds from another HSA plan, they can benefit from premium longer-term interest rates. To enroll in an HSA CD, participants generally will also need to have a Simsbury Bank HSA Checking Account. However, if they are no longer eligible to actively make HSA contributions, but wish to rollover existing funds, they are not required to havean HSA Checking Account, and may open a “stand-alone” HSA CD.

Some health insurance plans provide HSA account options within the plan. Plan sponsors and participants will appreciate a choice of HSA providers – they can get all of the tax and other benefits of an HSA through Simsbury Bank.

How are Simsbury Bank HSAs funded?

Participants and plan sponsors can deposit funds in many ways:

• Plan Sponsors may allow direct deposit payroll deductions into the account. Simsbury
  Bank can work with any payroll vendor on making these deposits.
  
• Plan sponsors may make additional “direct deposit” contributions for their employees.
• Participants can make other, lump-sum deposits to their own account. This is done
  at a Simsbury Bank branch using an HSA Contribution Form.
• Money may be rolled over from certain medical savings accounts called Archer accounts.
• Funds may be moved from flexible savings accounts (FSAs) or health reimbursement
  arrangements (HRAs) to their HSA.
• Participants can move Individual Retirement Account (IRA) assets to an HSA with some limitations.

Some employers make contributions to their employees’ HSAs. How does that work?

The sponsor’s payroll provider will be able to assist them in setting up a contribution into
each participant’s account electronically. The process can be automated so that the funds are deposited into participants’ accounts with each payroll run or any other schedule of the sponsor’s choosing. Many sponsors choose to apportion their annual contribution total evenly
during the year with each payroll processed in order to distribute the expense throughout
the year. This avoids front-loading a benefit to an employee who may leave during the year.
Participants would see two deposits into their HSA account – one from their own contribution,
should they choose to make one, and the other from their employer.

Sponsors can arrange with their payroll service to make group contributions automatically.

If a sponsor chooses to contribute toward their participants’ deductibles, the sponsor can
mandate that the sponsors’ contributions will be deposited to Simsbury Bank. To obtain
this money, participants would need to open an account with Simsbury Bank. If a participant
chooses to also have an additional HSA at another institution, it is the participants’
responsibility to move funds from their Simsbury Bank HSA to the other institution.

What are Simsbury Bank’s premium interest rates?

Simsbury Bank offers premium interest rates along with its advice and service.

What are the sponsor costs to run a plan that includes an HSA?

There are no fees to the sponsor.

What does it cost for participants?

There are no fees if participants’ HSA Checking Account balance is $2,500 or more. If their HSA Checking balance is below $2,500, their first year is free; thereafter there is a maintenance fee of $3.00 per month. The enrollment fee for participants is waived if their employer refers them to Simsbury Bank. Standard banking fees apply such as check re-ordering and stop payment service.

We also offer an HSA CD so that as their HSA balances grow, or they roll over funds from another HSA plan, participants can benefit from premium longer-term interest rates. If they open an HSA CD there is a minimum balance of $500 and no annual or monthly fee. For customers who qualify for a “stand-alone” HSA CD, there is an annual maintenance fee of $20.

How do participants access information on their accounts?

Simsbury Bank provides monthly paper statements, Internet banking access and 24-hour telephone banking access. Accountholders with other Simsbury Bank accounts can add the HSA accounts to SBT Online, our Internet banking service. They can use their existing ID and password to view balances and transactions and can even make payments to service providers online.

Does Simsbury Bank monitor HSA accounts so that sponsors and participants do not exceed the contribution limits?

Account holders are responsible for monitoring amounts deposited to their accounts.

How does the Bank handle mistaken distributions?

If a participant pays for a service whose cost is later adjusted downward, the money paid to the provider should be returned to the HSA. Participants should visit a Simsbury Bank branch and see a Personal Banker to make this re-deposit. A special form must be signed so that the re-deposit is not coded as a new deposit.

What reporting does Simsbury Bank provide?

Simsbury Bank provides complete reporting of contributions and distributions to the IRS and to HSA owners. HSAs require the following government reporting:

• Employers report contributions to employee
  accounts on a business tax return, as well as
  on employees’ Form W-2.
• HSA owners report contributions and distributions
  on their income tax returns.
• Simsbury Bank provides complete reporting of contributions and distributions to the IRS and to HSA owners. In January of each year, HSA account owners receive a Form 1099-SA that totals the gross distributions for the previous tax year and in May a Form 5498 that totals the previous year’s contributions. These amounts are also reported to the IRS.

How do participants enroll?

Simsbury Bank can arrange with sponsors for site visits to open HSA accounts for maximum
convenience for participants. Or, a participant can come to any Simsbury Bank branch and open an account on their own.**

How do I get more information and start my employees’ enrollment?

Simsbury Bank’s highly trained advisors can help you with any questions you have about our HSAs. We can open an HSA for your clients in any of our branches. And, for your added convenience, we can work with them to arrange for a Simsbury Bank advisor to make on-site visits for maximum convenience to their employees.

Call Simsbury Bank today to learn how you can offer your clients this exciting account with premium interest rates and tax advantaged savings for their retirement!

** Simsbury Bank does not guarantee the Establishment Date of the HSA being the same as the date the participant enrolls in an HDHP. The Establishment Date will be the date the HSA is opened with Simsbury Bank. The IRS prohibits HSA funds to be used to pay for services obtained prior to the Establishment Date.