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I�3i1dEl�t1 o�f & �11111M�ISA Presented by Financial Concepts, Inc. IN Im V, g 11/11 , f, A P High Deductible Health Plan No. Yes, HDHP must I)e estal)l'shed on the (HDHP) required first day of the month for the * 1div1dual to I)e ell.911)le to make a contril)ution for that month. Contribution limits None, unless plan design imposes one. Employee, employer or lath up to the statutory maximum amount ($3,000 for singles, $5,950 for family in 2009. Indexed to CPI annually). Employers are not required to contril)ute to the HS A. Employer contributions Mandatory. Permitted, sul)j*ect to the followin • Contril)utions must I)e comparaWe for ALL employees (same amount or percent of deductiNe); OR • Contril)utions may favor non- highly compensated employees over highly compensated employees; OR • Contril)utions must I)e through cafeteria plan (l)ut must satisfy nondiscrimination rules) Salary reduction funding Not permitted for HR A, I)ut permitted Permitted for lath HS A and HDHP. for HDHP. Also, the HS A may I)e funded with deductiWe (after-tax) employee contril)utions. Employee Assistance Plan (EAP) Permitted, without a limit. Permitted if it does not provide signi* ficant I)enefits and is not considered a health plan. Carryover of Unused Amounts Permitted. Required Cash-outs of unused amounts (if no Not permitted. Permitted, I)ut such amounts are taxaWe medical expense) and sul)ject to a 10% excise tax, unless disaWed, deceased or over age 65. 12-Month Period of coverage and Does not apply. Applies to HDHP if funded through prohibition of midyear changes cafeteria plan. Participants may change HS A election at any time as long as it is prospective. Uniform Coverage Requirement Does not apply (i.e., coverage level Does not apply, I)ut unused amounts may I)e prorated 1)y plan design). I)el participant after termination.