Republic Bank & Trust

HSA - Health and Savings Account

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What is a Health Savings Account?

A Health Savings Account (HSA) is a checking account that allows you to save for future medical expenses. Eligible individuals can make tax deductible contributions to their HSA, and funds can be withdrawn tax-free when used for qualified medical expenses.

A Health Savings Account offers individuals with High Deductible Health Plans (HDHPs) an affordable alternative to the high cost of healthcare. An HSA offers many benefits, including the ability to keep the money and save towards retirement.

Who is eligible for an HSA?

Any adult individual is eligible for an HSA who:

What is a High Deductible Health Plan (HDHP)?

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 2020, Federal law defines an HDHP as having the minimum annual deductible of $1,400 (individual coverage) or $2,800 (family coverage). In addition, the HDHP maximum annual out-of-pocket expenses cannot exceed $6,900 for individual coverage and $13,800 for family coverage.*

What are the benefits of an HSA?

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:

HSA Contributions

You or your employer can make a contribution (deposit) to your HSA each year that you are eligible. For 2020, you can contribute up to $3,550 if you have individual coverage and $7,100†† 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 2020, the maximum annual catch-up contribution is $1,000.

What is a Qualified Medical Expense?

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.

Features of the Republic Bank Health Savings Account

The Republic Bank HSA is a personal checking account, and provides you with many of the same features offered in our traditional checking accounts, including:

Using your account

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

How to open an HSA at Republic Bank

Other account information


* Preventive care need not be subject to the minimum annual deductible. The limit for maximum out-of-pocket expenses includes deductibles, co-payments, and other amounts, but not premiums.
** Message and data rates may apply from your wireless carrier.
 † Consult a tax advisor for more details.
†† 2020 amounts; this amount is adjusted annually for inflation

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