Estimate how much you can save with this HSA savings calculator!
An HSA is a tax-advantaged benefit account for people enrolled in a high-deductible health plan (HDHP). Account owners make pre-tax contributions each payday (or post-tax, which can be deducted on tax returns) to their HSA in order to pay for IRS-approved eligible expenses for themselves and their dependents. This handy HSA Savings Calculator will help you estimate your health spending for the year so you can make an informed decision and take maximum advantage of your HSA.
Health Savings Accounts Offer a Triple Tax Advantage
- Contributions are tax-free (or tax-deductible)
- Withdrawals for qualified expenses are tax-free
- Account funds grow tax-free, with interest or investment returns
HSA Benefits Include:
- Account ownership – You own the account! If your employment status changes for whatever reason, you keep the account forever and can continue using the funds.
- Balance rollover – At the end of each plan year, the unused balance in your account rolls over to the following year. There is NO “use it or lose it” rule with an HSA!
- Additional contributions – In the year you turn age 55, you can contribute an additional $1,000 over the annual limit. These are known as “catch up contributions.”
Plan for Retirement!
- Investing options – Invest your HSA funds once the account balance reaches your administrator’s minimum threshold in order to grow your funds quickly.
- Retirement fund supplement – Use your funds as a retirement account. Starting at age 65, any withdrawals for non-qualified expenses are taxed as regular income.
Other Important Information to Know About an HSA
- You can only use the current balance in the account
- You may file a claim for an eligible expense at any time, so long as the expense occurred after the HSA was established
- If you’re under age 65 and withdraw HSA funds for unapproved expenses, you’ll be penalized 20 percent in addition to having to file the withdrawal as income on your annual tax return