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HSA Calculator (Health Savings Account)

Calculate tax savings & growth for your HSA contributions.

Your Details
55+ eligible for $1,000 catch-up contribution
2024 limit: $4,150 (self) / $8,300 (family)
Tax Information
Enter 0 for no state income tax
Growth Projection

HSA Benefits

Enter your details to see tax savings and growth projection.

2024 HSA Limits
Contribution Limits
  • Self-Only: $4,150
  • Family: $8,300
  • Catch-Up (55+): +$1,000
HDHP Requirements (2024)
  • Min Deductible: $1,600 (self) / $3,200 (family)
  • Max Out-of-Pocket: $8,050 (self) / $16,100 (family)
Triple Tax Advantage
1 Tax-Deductible Contributions

Reduce taxable income by your contribution amount

2 Tax-Free Growth

Investment earnings grow without taxes

3 Tax-Free Withdrawals

Pay no tax on qualified medical expenses

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HSA Resources:

Disclaimer
HSA rules are complex. This calculator provides estimates only. Contribution limits change annually. Consult a tax professional for personalized advice. Non-qualified withdrawals before age 65 incur taxes plus 20% penalty.

What is a Health Savings Account (HSA)?

A Health Savings Account (HSA) is a tax-advantaged savings account designed specifically for individuals enrolled in a High Deductible Health Plan (HDHP). HSAs were created by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 to help Americans save for current and future healthcare costs.

Unlike Flexible Spending Accounts (FSAs), HSA funds roll over year after year and remain yours even if you change employers or health plans. This makes HSAs one of the most powerful savings vehicles available, combining immediate tax benefits with long-term investment growth potential.

The HSA is often called the "triple tax advantage" account because contributions are tax-deductible (or pre-tax through payroll), investment earnings grow tax-free, and withdrawals for qualified medical expenses are completely tax-free. No other account offers this combination of benefits.

The Triple Tax Advantage Explained

Tax Benefit #1
Tax-Deductible Contributions

Your HSA contributions reduce your taxable income dollar-for-dollar. If you contribute through payroll deduction, you also avoid FICA taxes (7.65%), saving even more.

Tax Benefit #2
Tax-Free Growth

Any interest, dividends, or capital gains in your HSA grow completely tax-free. Over decades, this can result in significantly more wealth than a taxable account.

Tax Benefit #3
Tax-Free Withdrawals

Withdrawals for qualified medical expenses are 100% tax-free. After age 65, you can withdraw for any purpose (medical withdrawals remain tax-free; non-medical are taxed like an IRA).

2024 HSA Contribution Limits

Category 2023 2024 Change
Self-Only Coverage $3,850 $4,150 +$300
Family Coverage $7,750 $8,300 +$550
Catch-Up (Age 55+) $1,000 $1,000 No change
Pro Tip: If both spouses are 55+, each can make a $1,000 catch-up contribution, but you'll need separate HSA accounts (catch-up contributions can't be shared). The total family contribution can be split between spouses however you choose.

HSA vs. FSA: Key Differences

Feature HSA FSA
Eligibility Must have HDHP Any health plan
Rollover Unlimited - funds never expire Use-it-or-lose-it (up to $610 may roll over)
Portability Yours forever, even if you leave job Tied to employer
Investment Can invest in stocks, bonds, mutual funds No investment options
2024 Limit $4,150 / $8,300 $3,200
Catch-Up $1,000 (age 55+) None

HSA Investment Strategies

Many people use their HSA only for current medical expenses, but the real power is in treating it as a long-term investment vehicle.

Short-Term Strategy
  • Keep enough cash to cover your deductible
  • Use HSA funds for current medical expenses
  • Good if you have regular healthcare costs
Long-Term Strategy (Recommended)
  • Pay current expenses out-of-pocket
  • Invest 100% of HSA in low-cost index funds
  • Save receipts for tax-free withdrawals later
  • Let it grow for decades tax-free
The Receipt Strategy: Pay medical expenses out-of-pocket now, save receipts, and reimburse yourself tax-free years or decades later. There's no time limit on reimbursement—just keep good records!

Frequently Asked Questions

At age 65, your HSA becomes even more flexible. Withdrawals for qualified medical expenses remain tax-free. For non-medical withdrawals, the 20% penalty disappears—you'll only pay regular income tax, similar to a traditional IRA. Many people use their HSA as a supplemental retirement account.

No. Once you enroll in Medicare (including Part A), you can no longer contribute to an HSA. However, you can still use existing HSA funds tax-free for qualified medical expenses, including Medicare premiums (except Medigap). Many people delay Medicare enrollment if still working with HDHP coverage.

Qualified expenses include doctor visits, prescriptions, dental care, vision care, mental health services, and many over-the-counter items (since 2020). LASIK, hearing aids, and even some long-term care premiums qualify. Cosmetic procedures and gym memberships generally don't qualify. See IRS Publication 502 for the complete list.

Yes! HSA funds can be used for qualified medical expenses of your spouse and tax dependents, even if they're not covered by your HDHP. This makes HSAs extremely flexible for families. You can also pay for your adult children's expenses if they're still your tax dependents.

Before age 65, non-qualified withdrawals are subject to income tax PLUS a 20% penalty—making them very expensive. After age 65, the 20% penalty drops away, leaving only income tax (like a traditional IRA withdrawal). This is why it's important to keep receipts for medical expenses.

Generally, no—having a general-purpose FSA disqualifies you from contributing to an HSA. However, you CAN have an HSA with a Limited-Purpose FSA (dental/vision only) or a Dependent Care FSA (for childcare, not healthcare). Check with your HR department for options.
Important Disclaimer

This calculator provides estimates for educational purposes only. HSA rules are complex and may change. Contribution limits, HDHP requirements, and qualified expenses are determined by the IRS. State tax treatment of HSAs varies (CA and NJ don't fully recognize HSA tax benefits). Always consult a qualified tax professional for personalized advice.