HSA Contribution Calculator

Health Savings Accounts (HSAs) are one of the most powerful tax-advantaged accounts available. They offer triple tax benefits: pre-tax contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. No other account offers all three benefits.

This free HSA contribution calculator helps you project your HSA balance, calculate tax savings, and optimize your contribution strategy. It shows you how HSA contributions reduce your taxes and how investments can grow your HSA over time.

Use this tool to plan your HSA contributions, understand tax benefits, and maximize this powerful savings tool for both current and future healthcare expenses.

Follow these steps to plan your HSA contributions:

1. 1

   Enter Current HSA Balance

   Input how much you currently have in your HSA. This is your starting point for future growth calculations.

2. 2

   Set Annual Contribution

   Enter your planned annual HSA contribution. 2024 limits: $4,150 (individual) or $8,300 (family). Include catch-up contributions if 55+.

3. 3

   Set Time Horizon

   Enter how many years you plan to contribute. This could be until retirement, a specific goal, or long-term healthcare planning.

4. 4

   Set Expected Return

   Enter expected annual return if investing HSA funds (typically 7% for long-term stock market average). If not investing, use 0% or current HSA interest rate.

5. 5

   Set Tax Bracket

   Enter your tax bracket to calculate tax savings. HSA contributions reduce your taxable income, saving taxes at your marginal rate.

6. 6

   Review HSA Projection

   See your projected HSA balance, total contributions, interest earned, and tax savings. Use this to plan your HSA contribution strategy.

Triple Tax Advantage: HSA is the only account offering all three tax benefits: (1) Pre-tax contributions reduce current taxable income, (2) Investments grow tax-free, (3) Withdrawals for qualified medical expenses are tax-free. This makes HSA extremely powerful for healthcare savings.

Contribution Limits: 2024 limits: $4,150 (individual) or $8,300 (family). If 55+, add $1,000 catch-up. These limits increase annually. You can contribute until the tax filing deadline (typically April 15) for the previous year.

Qualified Medical Expenses: HSA funds can be used tax-free for qualified medical expenses: doctor visits, prescriptions, dental, vision, mental health, medical equipment, and more. Keep receipts for all medical expenses—you can reimburse yourself from HSA at any time.

Investment Growth: Many HSA providers allow investing funds in stocks, bonds, mutual funds. This allows HSA to grow like a retirement account. Investments grow tax-free and can be withdrawn tax-free for medical expenses.

1. Maximize Contributions

Contribute the maximum allowed each year ($4,150 individual or $8,300 family in 2024). HSA offers triple tax benefits—maximizing contributions maximizes tax savings and healthcare savings.

2. Invest HSA Funds

Don't let HSA funds sit in cash earning minimal interest. Invest in stocks, bonds, or mutual funds to grow your HSA over time. Many HSA providers offer investment options. Treat HSA like a retirement account for healthcare.

3. Pay Medical Expenses Out of Pocket

If possible, pay medical expenses out of pocket and let HSA funds grow. Keep receipts—you can reimburse yourself from HSA at any time, even years later. This maximizes tax-free growth.

4. Use HSA for Retirement Healthcare

HSA can be used for healthcare expenses in retirement, including Medicare premiums. After age 65, HSA can be used for non-medical expenses (subject to income tax, no penalty). This makes HSA a powerful retirement healthcare savings tool.

5. Keep Detailed Records

Keep receipts for all medical expenses. You can reimburse yourself from HSA at any time, even years later. Detailed records ensure you can maximize HSA benefits and prove qualified expenses if audited.

6. Don't Lose HSA Funds

Unlike FSAs, HSA funds never expire and roll over year to year. You keep all HSA money forever, even if you change jobs or health plans (as long as you maintain HDHP eligibility). HSA is yours to keep.