HSA Calculator

An HSA is a tax-advantaged account for people enrolled in a High-Deductible Health Plan (HDHP). Contributions reduce taxable income, growth is tax-free, and withdrawals for qualified medical expenses are tax-free — a triple tax advantage.

For 2024, the contribution limits are $4,150 for individual coverage and $8,300 for family coverage. People age 55 or older can contribute an additional $1,000 per year as a catch-up contribution. Limits are adjusted annually for inflation.

Yes. Most HSA providers allow you to invest funds above a minimum balance threshold (typically $1,000) in mutual funds or ETFs. Investing HSA funds for long-term growth is a powerful strategy, particularly when you pay current medical expenses out of pocket.

After age 65, you can withdraw HSA funds for any reason without the 20% penalty, though non-medical withdrawals are taxed as ordinary income (similar to a Traditional IRA). Medical withdrawals remain completely tax-free, making the HSA very flexible in retirement.

Yes, but non-qualified withdrawals before age 65 incur ordinary income tax plus a 20% penalty. After age 65, only ordinary income tax applies (no penalty). A list of qualified medical expenses is provided in IRS Publication 502.

For 2024, an HDHP must have a minimum deductible of $1,600 (individual) or $3,200 (family), and maximum out-of-pocket expenses of $8,050 (individual) or $16,100 (family). Not all high-deductible plans qualify — check with your insurer or HR department.