Healthcare Budgeting HEALTH SAVINGS ACCOUNT Effective: January 1, 2027 A Health Savings Account (HSA) is a tax-advantaged savings account that is available to anyone enrolled in a qualified High-Deductible Health Plan (HDHP). HSAs are used to save money for current and future medical expenses. Employees enrolled in a qualified HDHP, can contribute their own pre-tax dollars to their HSA account. Please see chart on the following page for details of your HSA plan. 10 BENEFITS OF AN HSA • Save Money. HDHPs have lower monthly premiums, meaning less money is taken out of your paycheck to pay for health insurance. • Portability. The money in your HSA is carried over from year to year and is yours to keep, even if you leave the company. • Tax-Savings. HSA contributions are made with pre-tax dollars. Since your taxable income is decreased by your contributions, you’ll pay less in taxes. • Additional Retirement Savings. After age 65, funds can be withdrawn for any purpose without penalty (online income tax is assessed). • Investment Opportunities. Once you have a balance of $1,000 in your HSA, you can self-direct investments that can potentially grow your savings for healthcare or retirement. HOW DOES AN HSA WORK? The elections you make to an HSA are automatically taken from each paycheck throughout the year and deposited in your HSA. You can also contribute to your account anytime through the year via the online portal. When you have an eligible expense, HSA Bank offers convenient options to pay for current or future healthcare expenses, including your HSA debit card, online bill pay or manual check. To pay for a service, you must have funds in your account.