HSA Calculator

It combines your current balance with a level annual contribution (your personal contribution plus any employer contribution, capped at the IRS limit for your coverage type and age) and compounds the total annually at your expected rate of return. The result is the future value of a lump sum plus the future value of a yearly contribution stream, using the same math as any long-term investment growth projection.

For 2026, the IRS limit is $4,400 for self-only HDHP coverage and $8,750 for family coverage. If you're 55 or older by the end of the year, you can add a $1,000 catch-up contribution on top of either limit. This calculator automatically caps your combined personal-plus-employer contribution at these figures.

Account holders who are age 55 or older by the end of the tax year can contribute an extra $1,000 per year beyond the standard limit. Unlike some other catch-up rules, this amount is fixed by statute and not inflation-indexed. If you're married and both spouses are 55+, each spouse needs their own HSA to use their own $1,000 catch-up — it can't be combined into one account.

Contributions are tax-deductible (or made pre-tax through payroll), the invested balance grows tax-free, and withdrawals for qualified medical expenses are also tax-free. No other common account offers all three benefits at once — a traditional 401(k) defers tax on contributions and growth but taxes withdrawals, while a Roth IRA taxes contributions upfront but not growth or withdrawals.

You generally need to be covered by a qualifying High-Deductible Health Plan (HDHP) on the first day of the month, have no other disqualifying health coverage, not be enrolled in Medicare, and not be claimed as a dependent on someone else's tax return. For 2026, an HDHP must have a minimum deductible of $1,700 (self-only) or $3,400 (family) and an out-of-pocket maximum no higher than $8,500 (self-only) or $17,000 (family).

Excess contributions are subject to a 6% excise tax for each year they remain in the account, unless you withdraw the excess amount (plus any earnings on it) before your tax filing deadline. This calculator caps the contribution used in the projection at your statutory limit so the growth figures reflect only the allowed amount — it does not model the excise-tax penalty itself.

No — the tax-savings figure shown is income-tax only (your contribution times your entered marginal tax rate). If your HSA contribution runs through an employer payroll or cafeteria plan, you also avoid the 7.65% FICA payroll tax (Social Security and Medicare) on that amount, which is an additional saving on top of what's displayed here.

Many HSA providers let you invest funds above a small cash threshold in mutual funds or ETFs, similar to a 401(k) or IRA. Because HSA growth is entirely tax-free (unlike a taxable brokerage account), keeping a long-term-horizon balance invested rather than sitting in a low-yield cash account can meaningfully increase how much you have available for future medical costs — this calculator's expected-return input lets you model that growth.

An HSA requires HDHP coverage, has no 'use it or lose it' rule (unused balances roll over and stay yours even after you leave your job), can be invested for tax-free growth, and is fully portable. A Flexible Spending Account (FSA) is employer-owned, typically must be spent within the plan year (with a small grace period or carryover allowed by some employers), and doesn't carry the same investment or portability features.

You can withdraw HSA funds for any purpose, but non-qualified withdrawals before age 65 are taxed as ordinary income plus a 20% penalty. After age 65, non-medical withdrawals are taxed as ordinary income (similar to a traditional 401(k)) but no longer incur the 20% penalty — which is why many people treat their HSA as a supplemental retirement account for medical costs later in life.

A common approach is to contribute enough to cover your expected annual medical costs (at minimum your HDHP deductible), and if you can afford more, contribute up to the full IRS limit to maximize the tax-free growth. Because HSA funds never expire and can be invested, maxing out your contribution — even if you don't spend it right away — is often treated as a highly efficient long-term savings strategy.

Yes. The IRS adjusts the annual HSA contribution limits and the HDHP minimum-deductible / out-of-pocket-maximum thresholds for inflation each year via a revenue procedure, typically released the year before it takes effect. This calculator uses the confirmed 2026 figures; check the IRS's current guidance if you're projecting for a different tax year.

Yes. The IRS limit applies to the combined total from every source, not to each contributor separately — your own payroll or direct deposits plus anything your employer adds all draw from the same statutory cap. This calculator reflects that rule directly: it adds your personal and employer contributions together first, then applies the single IRS limit for your coverage type and age.

Withdrawals are tax-free when spent on IRS-qualified medical expenses, which covers most out-of-pocket healthcare costs: doctor and dental visits, prescriptions, vision care, mental health services, and amounts applied to your HDHP deductible or copays. Health insurance premiums generally don't qualify, with a few exceptions — COBRA continuation coverage, premiums paid while collecting unemployment benefits, and Medicare Part B/D or Medicare Advantage premiums once you turn 65. Keep your receipts; the IRS doesn't ask for proof at withdrawal time but does if your return is ever audited.