HSA Calculator
Maximize your Health Savings Account's triple tax advantage. See how investing your HSA can grow.
2024 max: $4,150 (individual) / $8,300 (family)
The Triple Tax Advantage
1. Tax-deductible contributions: Contributions reduce your taxable income, saving you money now.
2. Tax-free growth: Investment gains inside your HSA are never taxed—unlike a regular brokerage account.
3. Tax-free withdrawals: Use funds for qualified medical expenses at any time, tax-free. After 65, use for any purpose (like a traditional IRA).
HSA as retirement account: Many people use HSAs as a "stealth IRA"—invest now, pay medical bills out of pocket, withdraw tax-free in retirement.
HSA Eligibility and Contribution Limits
To contribute to an HSA, you must be enrolled in a High Deductible Health Plan (HDHP). For 2024, a qualifying HDHP must have a minimum deductible of $1,600 for individual coverage or $3,200 for family coverage. The maximum out-of-pocket limit is $8,050 for individuals and $16,100 for families. You cannot have other non-HDHP health coverage, be enrolled in Medicare, or be claimed as a dependent on someone else's tax return.
2024 contribution limits: $4,150 for individual coverage and $8,300 for family coverage. If you are 55 or older, you can contribute an additional $1,000 as a catch-up contribution. These limits include both your contributions and any employer contributions.
The invest-and-save strategy: The most powerful HSA approach is to contribute the maximum, invest the funds in low-cost index funds, and pay current medical expenses out of pocket. Keep your medical receipts. You can reimburse yourself from the HSA at any time in the future, even years later, for expenses incurred while the HSA was open. This allows decades of tax-free growth before withdrawal.
After age 65: Once you turn 65, your HSA becomes even more flexible. You can withdraw funds for any purpose without penalty, though non-medical withdrawals are taxed as ordinary income (similar to a traditional IRA). Medical withdrawals remain completely tax-free. This makes the HSA a powerful supplemental retirement account.
Frequently Asked Questions
What qualifies as an HSA-eligible medical expense?
The IRS defines qualified medical expenses broadly under Section 213(d). This includes doctor visits, prescription medications, dental care, vision care, mental health services, chiropractic care, and even some over-the-counter medications and supplies. It does not include cosmetic procedures, gym memberships (unless prescribed), or health insurance premiums (with limited exceptions like COBRA and Medicare premiums).
Can I keep my HSA if I change jobs or health plans?
Yes. Unlike an FSA (Flexible Spending Account), your HSA belongs to you, not your employer. If you switch to a non-HDHP plan, you can no longer contribute to the HSA, but you can still use existing funds for qualified expenses and keep the account invested. The funds never expire and roll over indefinitely.
Should I invest my HSA or keep it in cash?
It depends on your time horizon and financial situation. If you expect to use the funds for medical expenses in the near term, keep enough in cash to cover your deductible. For funds you plan to save long-term, investing in diversified index funds can significantly grow the balance. Many HSA providers offer investment options once your cash balance reaches a certain threshold (typically $1,000-$2,000).
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This calculator provides estimates for educational purposes only.