HSA Growth Calculator
Project a health savings account used as a long term investment, including the tax saved on contributions.
An HSA is the only account that is tax free three times. Money goes in untaxed, grows untaxed and comes out untaxed for medical costs.
Paying small medical bills from cash and investing the HSA turns it into a stealth retirement account.
How it works
Contributions less spending are invested each month and compound at the return rate. Tax saved is contributions times your marginal rate.
After 65 the money can also be withdrawn for anything, taxed like a traditional IRA.
The formula
Tax saved = contributions x marginal tax rate.
Tips
- Payroll HSA contributions also avoid Social Security and Medicare tax. That is a bonus on top of income tax.
- Keep receipts. You can reimburse yourself years later, tax free.
Frequently asked questions
Who can open an HSA?
Anyone covered by a high deductible health plan who is not on Medicare or claimed as a dependent.
This is not financial advice. Nothing on this site is investment, tax, legal or financial advice of any kind.
The calculators give simplified estimates from the numbers you enter. They ignore taxes, fees, rate changes and real market returns, and they can be wrong.
Do not make financial decisions based on these results. Speak to a licensed financial adviser, accountant or lender before acting, and read the full disclaimer.