HSA Calculator

Calculate your Health Savings Account growth and retirement medical savings potential

HSA Calculator

Calculate your Health Savings Account growth and retirement medical savings potential

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Current Age*

Retirement Age*

Current HSA Balance ($) *

Annual Contribution ($) *

2024 contribution limits: $4,150 (individual) / $8,300 (family) + $1,000 catch-up (55+)

Coverage Type*

Annual Return Rate (%) *

Typical HSA investment returns: 5-8% annually

Annual Medical Expenses ($)

Average American spends $5,000-$12,000 annually on healthcare

Understanding HSA (Health Savings Account)

A Health Savings Account (HSA) is a tax-advantaged savings account available to individuals enrolled in a High-Deductible Health Plan (HDHP). HSAs offer triple tax benefits: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses.

Unlike Flexible Spending Accounts (FSAs), HSA funds roll over year after year and remain yours even if you change employers or retire. After age 65, you can withdraw HSA funds for any purpose without penalty (though non-medical withdrawals are taxed as ordinary income).

2024 HSA Contribution Limits

The IRS sets annual contribution limits for HSAs. These limits are adjusted periodically for inflation.

Coverage Type	Contribution Limit
Individual Coverage	$4,150
Family Coverage	$8,300
Catch-Up Contribution (Age 55+)	+$1,000

Triple Tax Advantage

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Tax-Deductible Contributions

Contributions reduce your taxable income, lowering your current year tax bill

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Tax-free investment growth

Your HSA investments grow tax-free, compounding faster than taxable accounts

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Tax-Free Withdrawals

Withdrawals for qualified medical expenses are completely tax-free at any age

Key HSA Benefits

Rollover Funds

Unlike FSAs, unused HSA funds roll over indefinitely. There's no 'use it or lose it' rule.

Portability

Your HSA stays with you when you change jobs, health plans, or retire. You own the account.

Retirement Medical Savings

After age 65, you can use HSA funds for Medicare premiums, long-term care, or any expense (taxed if non-medical).

Investment Options

Many HSA providers offer investment options like mutual funds and ETFs once your balance reaches a minimum threshold (typically $1,000-$2,000).

Frequently Asked Questions

Who is eligible for an HSA?

To contribute to an HSA, you must be enrolled in a High-Deductible Health Plan (HDHP), not be claimed as a dependent on someone else's tax return, not be enrolled in Medicare, and have no other health coverage that disqualifies you. For 2024, an HDHP is defined as a plan with a minimum deductible of $1,600 (individual) or $3,200 (family).

What are qualified medical expenses?

Qualified medical expenses include most healthcare costs: doctor visits, prescriptions, dental care, vision care, hospital services, lab tests, medical equipment, and more. IRS Publication 502 provides a complete list. Over-the-counter medications and menstrual products are now qualified expenses. Cosmetic procedures and most insurance premiums (except COBRA, Medicare, and long-term care) are not qualified.

How is an HSA different from an FSA?

HSAs offer significant advantages over FSAs: (1) Funds roll over indefinitely vs. FSA's use-it-or-lose-it rule, (2) You own the account and keep it when changing jobs vs. FSAs tied to employers, (3) HSAs can be invested for growth vs. FSAs are cash-only, (4) Higher contribution limits ($4,150 vs. $3,200 for FSAs in 2024), and (5) HSAs are triple tax-advantaged. The trade-off is HSAs require enrollment in a high-deductible health plan.

What happens to my HSA after age 65?

After age 65, your HSA becomes even more flexible. You can still use funds tax-free for medical expenses (including Medicare premiums, except Medigap). You can also withdraw funds for any non-medical purpose—you'll pay income tax but no penalty (similar to a traditional IRA). Many retirees use their HSA as a supplemental retirement account. You can no longer contribute to an HSA after enrolling in Medicare, but you can continue using accumulated funds.

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