Tools · HSA

The HSA triple-tax advantage,
quantified.

Contributions pre-tax. Growth tax-free. Qualified withdrawals tax-free. See how much this saves you over 10, 20, and 30 years versus a taxable account doing the same work.

This page covers US-specific accounts and tax law. Outside the US? The priority order is the same, the account names differ (ISAIndividual Savings Account (ISA)A UK tax-advantaged account where contributions are post-tax but all growth and withdrawals are tax-free.Full definition in the UK, TFSATax-Free Savings Account (TFSA)A Canadian tax-advantaged account where contributions are post-tax but all growth and withdrawals are tax-free.Full definition/RRSPRegistered Retirement Savings Plan (RRSP)A Canadian tax-deferred retirement account; contributions reduce taxable income and growth is tax-deferred until withdrawal.Full definition in Canada, Super in Australia, etc.).

California and New Jersey do not allow state HSA deduction ×DON'T TRUST, VERIFYClaim: CA and NJ do not conform to federal HSA tax treatment.Verify at: California FTB ↗Set state rate to 0% if in CA or NJ..

What you pay without HSA reimbursement. Keep receipts; reimburse later tax-free.

ANNUAL TAX SAVINGS
$0
AFTER 10 YEARS
$0
vs taxable
AFTER 20 YEARS
$0
vs taxable
AFTER 30 YEARS
$0
vs taxable
REIMBURSEMENT POOL
$0

Pay medical expenses out of pocket now. Keep receipts. Reimburse yourself tax-free from the HSA any time in the future. This is a running pool of future tax-free withdrawals. Above is the total over the contribution window.

AFTER 65

After 65, HSA funds can be withdrawn for any purpose and taxed like a Traditional IRAIndividual Retirement Account (IRA)A personal retirement savings account with tax advantages. Two main types: Traditional (tax now, pay later) and Roth (pay now, tax-free forever).Full definition. The 20% non-qualified withdrawal penalty goes away. The HSA effectively becomes a bonus retirement account ×DON'T TRUST, VERIFYClaim: After 65, HSA non-qualified withdrawals are taxed as ordinary income without the 20% penalty.Verify at: IRS Publication 969 ↗HSA withdrawals for qualified medical expenses remain tax-free at any age..

What this tool assumes
  • Triple tax advantage: contributions are federal + FICAFederal Insurance Contributions Act (FICA)The payroll tax that funds Social Security and Medicare, split between employee and employer.Full definition deductible, growth is tax-free, qualified withdrawals are tax-free.
  • After age 65, non-medical withdrawals are taxed as ordinary income (no penalty).
  • State treatment of HSA varies; CA and NJ tax HSA growth at the state level.
  • Assumes you can pay medical costs from cash-on-hand and let the HSA grow.

Not financial advice. Requires HDHPHigh-Deductible Health Plan (HDHP)A health insurance plan with cheaper monthly cost but a bigger amount you pay yourself before insurance starts covering bills. Required if you want a tax-free Health Savings Account.Full definition. US tax law.

Related

→ HSA Deep Dive → Tax-Advantaged Accounts Compared → Order of Operations
HOW THIS IS CALCULATED

This tool runs entirely in your browser — no data is sent to any server. All formulas use standard financial math. Verify the methodology or inspect the source code in your browser's dev tools.