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Notice of change in terms

HealthEquity is updating the Health Savings Account (HSA) Custodial Agreement, which we review on an annual basis and amend as needed. The amended agreement will be effective on June 1, 2018, after appropriate notice has been provided to account holders.

Notable changes to the Custodial Agreement include, but are not limited to, the following:

  • Appendix A to Custodial Agreement: Cash Management Instructions (which outlines the instructions and procedures for how HealthEquity places funds that Member allocates to Member's Cash Account) was added.
  • Section 1.01 (which outlines where contributions are held and addresses insurance eligibility) was modified to indicate that contributions can be held at a bank or credit union and are eligible for insurance by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).
  • Section 4.02 (which requires that the member provide substantiation for distributions) was modified to include reference to IRS Publication 969 about Qualified Medical Expenses.
  • Section 4.08 (which addresses the distribution of funds for overdrawn accounts) was enhanced to outline custodian obligations and address liability for overdrawn accounts.
  • Section 4.09 (which provides details about contribution availability) was modified.
  • Section 6.01 (which details general investment information) was modified to include information from Section 9.07 about the availability of liquidated investments and indicates that liquidated assets can be placed at a bank or credit union where they are eligible for FDIC or NCUA insurance.
  • Section 7.02 (which outlines custodian compensation) was modified to include additional details regarding the method through which the custodian is compensated and references the new appendix if additional detail is needed.
  • Section 9.06 (which outlines custodian handling of HSA investments when modifications are made) was modified by removing the language about Category 2 Funds.
  • Section 9.07 (which provides details about the availability of funds after investment liquidation) was incorporated into Section 6.01 and subsequently removed.
  • Section 9.17 (which addresses overdrawn accounts and their associated fees) was removed.

To see the agreement in its entirety, go to: /doclib/general/custodial-agreement.pdf