Any adult individual is eligible for an HSA who:

• is covered under a High Deductible Health Plan (HDHP)
• is not covered by any other health plan that is not an HDHP
• is not enrolled in Medicare
• is not being claimed as a dependent on another person’s tax return

You must have coverage under an HSA-qualified High Deductible Health Plan (HDHP) to open and contribute to an HSA. An HDHP is an insurance policy that meets certain dollar limits. Sometimes referred to as a “catastrophic” health insurance plan, an HDHP is an inexpensive health insurance plan that generally doesn’t pay for the first several thousand dollars of health care expenses (your deductible) but will cover medical expenses after the high deductible is met. Your HSA is available to help you pay for the expenses that your plan does not cover. For 2025, Federal law defines an HDHP as having the minimum annual deductible of $1,650 (individual coverage) or $3,300 (family coverage). In addition, the HDHP maximum annual out-of-pocket expenses cannot exceed $8,300 for individual coverage and $16,600 for family coverage.*

An HSA, combined with a High Deductible Health Plan, has the benefit of potentially lowering your health insurance premiums. An HSA can also give you flexibility to control how much money you contribute to the account and which medical expenses to pay for from the account. In addition, an HSA can provide significant tax benefits, including:

•  tax deductible contributions to your HSA^†
•  tax-free withdrawals for qualified medical expenses^†
•  tax-free earnings through investment^†

You or your employer can make a contribution (deposit) to your HSA each year that you are eligible. For 2025, you can contribute up to $4,300^† if you have individual coverage and $8,550^†† if you have family coverage.

In addition to the standard HSA contribution limit, if you have attained age 55 before the close of a taxable year, you may also contribute an additional amount known as a “catch-up” contribution. For 2025, the maximum annual catch-up contribution is $1,000.

For HSA assets to retain their tax-free status, they must be used for certain medical expenses. Qualified medical expenses are generally expenses that qualify for the medical and dental income tax deductions as defined in IRS Publication 502. Using funds from your HSA for non-qualified medical expenses can result in IRS penalties. Unused funds are allowed to accumulate tax-free until retirement.

Using the funds that you have contributed to your HSA is simple. Your Republic Bank HSA can be accessed in the following ways:

• Debit Card: You’ll receive a Republic Bank Health Savings Account Card that can be used at qualified Mastercard locations. Debits are deducted straight from your HSA. Many of your medical service providers accept Mastercard for payment.
• Check Writing: You can order checks to pay for medical expenditures from your HSA.