Understanding Health Savings Accounts (HSAs)

Health Savings Accounts Maximize your savings How an HSA works: • Contribute to your HSA by payroll deduction, online transfer or personal check. • Pay for qualified healthcare expenses for yourself, your spouse and your dependents. Both current and past expenses are covered if they’re from after you opened your HSA. • Use your Benefits Card to pay directly, or pay out of pocket for reimbursement or to grow your HSA funds. • Roll over any unused funds year to year. It’s your money — for life. • Invest your HSA funds and potentially grow your savings.¹ A Health Savings Account, or HSA, is a tax-advantaged savings account you can use for healthcare expenses. Along with saving you money on taxes, HSAs can help you grow your nest egg for retirement.

¹ Investment accounts are not FDIC insured, may lose value and are not a deposit or other obligation of, or guarantee by the bank. Investment losses which are replaced are subject to the annual contribution limits of the HSA. 2 HSA contributions in excess of IRS limits are subject to penalty and tax unless the excess and earnings are withdrawn prior to the tax filing deadline as explained in IRS Publication 969. 3 Federal tax savings are available regardless of your state. State tax laws may vary. Consult a tax professional for more information. Triple tax savings A huge way that HSAs can benefit you is they let you save on taxes in three ways. You don’t pay federal taxes on contributions to your HSA.3 Earnings from interest and investments are tax-free. Distributions are tax-free when used for qualified healthcare expenses. How much can I contribute? The IRS limits how much you can contribute to your HSA every year. This includes contributions from your employer, spouse, parents and anyone else.2 Am I eligible for an HSA? You’re most likely eligible to open an HSA if: • You have a qualified high-deductible health plan (HDHP). • You’re not covered by any other non-HSA- compatible health plan, like Medicare Parts A and B. • You’re not covered by TriCare. • No one (other than your spouse) claims you as a dependent on their tax return. What’s covered? You can use your HSA funds to pay for any IRS-qualified healthcare expenses, like doctor visits, hospital fees, prescriptions, dental exams, vision appointments, over-the-counter medications and more. Visit hsabank.com/QME for a full list. ©2024-2025 HSA Bank. HSA Bank is a division of Webster Bank, N.A., Member FDIC. Plan Administrative Services and Benefit Services are administered by Webster Servicing LLC. HSA_Overview_2025/2026_Limits_051325 1 3 2 Catch-up contributions You may be eligible to make a $1,000 HSA catch-up contribution if you’re: • Over 55. • An HSA accountholder. • Not enrolled in Medicare (if you enroll mid- year, annual contributions are prorated). Visit hsabank.com or call the number on the back of your debit card for more information. 2025 Maximum contribution limit $4,300 SINGLE PLAN FAMILY PLAN $8,550 2026 Maximum contribution limit $4,400 SINGLE PLAN FAMILY PLAN $8,750