HSA Calculator & Optimizer
Maximize your Health Savings Account with our comprehensive calculator. See your projected balance at retirement, calculate tax savings, and compare strategies for paying medical expenses now vs. investing and reimbursing later.
Your HSA Information
The Triple Tax Advantage
Tax-Free Contributions
$1,117/year saved
Tax-Free Growth
$332,798 projected
Tax-Free Withdrawals
For qualified medical expenses
HSA Balance at Retirement
Covers approximately 59.0 years of retirement medical expenses
Strategy Comparison: Pay Now vs. Invest & Pay Later
| Strategy | HSA Balance | Saved Receipts | Net Position |
|---|---|---|---|
| Pay Medical Expenses from HSA | $255,368 | $0 | $255,368 |
| Invest & Reimburse Later | $457,514 | $60,000 | $397,514 |
Advantage of investing: $142,146 more by paying out-of-pocket now and letting HSA grow tax-free
HSA Optimization Strategies
Maximize Contributions
Contribute the maximum each year. If your employer offers HSA matching, always contribute enough to get the full match—it's free money.
Invest Your HSA
Don't let your HSA sit in cash. Invest in low-cost index funds for long-term growth. Keep a small cash buffer for near-term expenses.
Save Receipts Forever
Pay medical expenses out-of-pocket if you can, save receipts, and reimburse yourself years later. There's no time limit on reimbursement.
After 65: Use Like a 401(k)
After age 65, you can withdraw for any purpose (not just medical) and pay only income tax—no penalty. It becomes a flexible retirement account.
Frequently Asked Questions
What is the HSA triple tax advantage?
The HSA offers three tax benefits that no other account provides:
- Tax-deductible contributions: Reduce your taxable income
- Tax-free growth: Investments grow without capital gains taxes
- Tax-free withdrawals: No taxes on qualified medical expenses
What are the HSA contribution limits for 2024?
- Individual coverage: $4,150
- Family coverage: $8,300
- Catch-up (age 55+): Additional $1,000
Should I pay medical expenses from my HSA or invest it?
If you can afford to pay medical expenses out-of-pocket, it's often better to let your HSA grow tax-free and reimburse yourself later. Save your receipts — there's no time limit on reimbursement. This strategy maximizes tax-free growth.
What happens to my HSA after age 65?
After age 65, your HSA becomes even more flexible:
- Withdraw tax-free for medical expenses (same as before)
- Withdraw for any purpose and pay only income tax (no 20% penalty)
- Essentially becomes like a traditional IRA
Can I invest my HSA funds?
Yes! Most HSA providers offer investment options including mutual funds and ETFs. For long-term growth, invest in low-cost index funds. Keep a small cash buffer (e.g., $1,000-2,000) for near-term medical expenses.