HSA Calculator: Tax Savings and Growth of a Health Savings Account

How to use the HSA calculator

1. Choose just me or my family coverage.
2. Enter your age, the balance now, and what you and your employer put in each year.
3. Add the medical bills you expect to pay from the HSA each year, an investment return, and your federal and state tax rates.
4. Tick through payroll if your contributions come out of your paycheck: they also skip Social Security and Medicare tax.

HSA limits for 2026

Source: IRS Revenue Procedure 2025-19. The catch-up is per person: spouses who are both 55 or older each need their own HSA for it.

Why an HSA can beat a 401(k)

A 401(k) saves tax going in and is taxed coming out. A Roth IRA is taxed going in and free coming out. An HSA used for medical costs is free on both sides, and through payroll it also skips the 7.65% FICA tax that 401(k) contributions still pay. That's why many people fill the HSA after getting their full employer 401(k) match. Compare the other accounts with the 401(k) calculator and Roth IRA calculator, and read Roth IRA vs 401(k).

Tax savings examples

Contributions you make yourself are deducted on your tax return; only payroll contributions avoid FICA. California and New Jersey tax HSA contributions and growth, so enter 0 for state tax there.

The "receipt" strategy

You don't have to reimburse yourself in the same year. Pay small medical bills from your budget, keep the receipts, and let the HSA stay invested. Years later you can withdraw the total of those receipts tax-free. Paying nothing from the HSA in the example above lifts the balance at 65 from about $296,000 to about $359,000.

What an HSA can pay for

Doctor visits, prescriptions, dental and vision care, glasses and contacts, mental health care, many over-the-counter medicines and menstrual products, and after 65 Medicare premiums (not Medigap). Health insurance premiums usually don't qualify before 65, except COBRA, coverage while on unemployment benefits, and long-term care insurance.

HSA in your retirement plan

Medical costs are one of the biggest expenses in retirement, so a large HSA is a tax-free health fund for later. After 65 it works like a traditional IRA for anything else, without required minimum distributions; see the RMD calculator for accounts that have them.

Track every account in one place

Summit is a net worth tracker that keeps your HSA, 401(k), IRAs, cash and debts together and shows your progress over time. Nest tracks savings goals with target dates. Both have a free demo with sample data.

2026 IRS limits; an estimate, not tax or investment advice.