Free HSA Calculator
Calculate your Health Savings Account (HSA) growth with triple tax advantages. See contribution limits, tax savings, and long-term investment potential.
HSA Calculator
Maximize your triple tax advantage
HSA Details
2024 limit: $4,150 (individual)
Triple Tax Advantage: Tax-deductible contributions, tax-free growth, and tax-free withdrawals for medical expenses.
📚 Learn About HSAs
💰 Triple Tax Advantage
HSAs offer three tax benefits: (1) Tax-deductible contributions, (2) Tax-free growth on investments, (3) Tax-free withdrawals for qualified medical expenses. No other account has all three.
Example: $3,000 contribution at 25% tax rate = $750 immediate tax savings.
📊 Contribution Limits
- Individual: $4,150 (up from $3,850 in 2023)
- Family: $8,300 (up from $7,750 in 2023)
- Age 55+ Catch-up: Additional $1,000
- Employer Match: Counts toward annual limit
🏦 HSA as Retirement Account
After age 65, you can withdraw HSA funds for any purpose (not just medical) without penalty. Only pay income tax, like a traditional IRA. For medical expenses, still tax-free.
Strategy: Pay medical costs out-of-pocket, let HSA grow tax-free for retirement.
📈 Investment Growth Potential
Most HSA providers allow investing once you reach a minimum balance ($1,000-2,000). Invest in mutual funds, index funds, or ETFs for long-term growth.
Example: $8,300/year for 20 years at 7% return = $340,000+ tax-free.
✅ Eligibility Requirements
- Must have High Deductible Health Plan (HDHP)
- Cannot be enrolled in Medicare
- Cannot be claimed as dependent on someone's taxes
- No other health coverage (with exceptions)
- 2024 HDHP minimums: $1,600 individual, $3,200 family
🎯 Best Practices
- Max out contributions every year if possible
- Invest HSA funds for long-term growth
- Save receipts for medical expenses (no time limit)
- Pay current medical costs out-of-pocket if able
- Use as supplemental retirement account
- Choose low-fee HSA provider
How to Use This HSA Calculator
Enter Contribution Details
Input your annual HSA contribution, current balance, and whether you're 55+ for catch-up contributions.
Set Investment Parameters
Enter expected investment return rate and years until retirement or withdrawal.
Review Growth & Savings
See total HSA balance, tax savings, and investment growth over time.
Frequently Asked Questions
What is an HSA and how does it work?
A Health Savings Account (HSA) is a tax-advantaged savings account for medical expenses. You must have a High Deductible Health Plan (HDHP) to contribute. HSAs offer triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. Unlike FSAs, HSA funds roll over year to year and are portable if you change jobs. After age 65, you can withdraw for any purpose (paying only income tax, like a traditional IRA).
How much can I contribute to my HSA in?
For, the contribution limits are $4,150 for individual coverage and $8,300 for family coverage. If you're 55 or older, you can contribute an additional $1,000 catch-up contribution. These limits include both your contributions and any employer contributions. Pro-rated contributions apply if you don't have HDHP coverage for the full year. Contributions can be made until the tax filing deadline (typically April 15).
Should I invest my HSA or keep it in cash?
If you can afford to pay current medical expenses out-of-pocket, invest your HSA for long-term growth. Most experts recommend keeping 1-2 years of your deductible in cash, then investing the rest in low-cost index funds. HSAs are excellent retirement accounts due to triple tax advantages. Over 20-30 years, invested HSA funds can grow significantly tax-free. After age 65, you can use HSA funds for any purpose, making it a powerful retirement tool.
What happens to my HSA if I change jobs or health plans?
Your HSA is yours forever - it's portable and stays with you when you change jobs or health plans. You can continue using the funds for qualified medical expenses even if you no longer have an HDHP. However, you can only contribute to an HSA while you have HDHP coverage. If you switch to a non-HDHP plan, you can't make new contributions but can still use existing funds. Consider rolling over to a low-fee HSA provider if you leave your employer.