What are the HSA contribution limits for 2024?

For 2024, HSA contribution limits are $4,150 for individual coverage and $8,300 for family coverage. Individuals 55 and older can contribute an additional $1,000 catch-up contribution.

What is the triple tax advantage of HSAs?

HSAs offer three tax benefits: 1) Tax-deductible contributions reduce current taxable income, 2) Tax-free growth on investments and interest, 3) Tax-free withdrawals for qualified medical expenses.

Can I use HSA funds for non-medical expenses?

After age 65, HSA funds can be withdrawn for any purpose without penalty, though non-medical withdrawals are taxed as ordinary income. Before 65, non-medical withdrawals incur a 20% penalty plus taxes.

US Health Savings Account (HSA) Calculator

Calculate the powerful triple tax advantages of Health Savings Accounts including immediate tax savings, tax-free growth, and tax-free medical withdrawals. Plan your HSA contributions for optimal tax benefits and retirement healthcare funding.

Analysis Type:

Coverage Type:

Annual Contribution ($) 2024 limits: Individual $4,150, Family $8,300

Current Age

Current HSA Balance ($)

Marginal Tax Rate (%)

State Tax Rate (%) Enter 0 if no state income tax

Include Payroll Tax Savings:

Retirement Age

Expected Annual Return (%) Conservative: 4-6%, Moderate: 6-8%, Aggressive: 8-10%

Annual Medical Expenses ($) Amount withdrawn annually for medical expenses

Medical Inflation Rate (%) Historical average: 3-5% annually

Annual Tax Savings: -

Effective Contribution Cost: -

HSA Balance at Retirement: -

Lifetime Tax Savings: -

Understanding Health Savings Accounts (HSAs)

🎯 Triple Tax Advantage

Tax-Deductible Contributions

Contributions reduce your taxable income dollar-for-dollar, providing immediate tax savings.

Tax-Free Growth

Interest, dividends, and capital gains grow tax-free, compounding your savings over time.

Tax-Free Withdrawals

Withdrawals for qualified medical expenses are never taxed, providing maximum benefit.

2024 HSA Contribution Limits & Rules

Coverage Type	2024 Limit	Catch-up (55+)	Total (55+)
Individual	$4,150	$1,000	$5,150
Family	$8,300	$1,000	$9,300

HSA Eligibility Requirements

✅ Must Have

High Deductible Health Plan (HDHP)
No other health coverage
Not enrolled in Medicare
Not claimed as dependent

📋 2024 HDHP Minimums

Individual: $1,600 deductible
Family: $3,200 deductible
Individual: $8,050 max out-of-pocket
Family: $16,100 max out-of-pocket

Qualified Medical Expenses

🏥 Medical Care

Doctor visits and specialists
Hospital stays and surgeries
Emergency room visits
Diagnostic tests and lab work
Physical therapy

💊 Medications & Supplies

Prescription medications
Over-the-counter medicines
Medical equipment
Bandages and first aid
Blood pressure monitors

🦷 Dental & Vision

Dental cleanings and procedures
Orthodontics
Eye exams
Prescription glasses/contacts
LASIK surgery

🧠 Mental Health

Therapy and counseling
Psychiatric care
Mental health medications
Substance abuse treatment
Stress management programs

HSA Tax Savings Examples

👤 Individual Coverage

Single person, 22% tax bracket:

Annual Contribution $4,150

Federal Tax Savings (22%) $913

State Tax Savings (5%) $208

Payroll Tax Savings (7.65%) $317

Total Annual Savings $1,438 (34.6%)

👨‍👩‍👧‍👦 Family Coverage

Family, 24% tax bracket, age 55+:

Max Contribution (w/ catch-up) $9,300

Federal Tax Savings (24%) $2,232

State Tax Savings (6%) $558

Payroll Tax Savings (7.65%) $712

Total Annual Savings $3,502 (37.7%)

🏖️ Retirement HSA Strategy

30-year investment horizon:

Annual Contribution $4,150

Investment Period 30 years

Expected Return 7% annually

Total Contributions $124,500

Final Balance $415,073

HSA Optimization Strategies

💰 Maximize Contributions

Contribute the full annual limit
Use catch-up contributions if 55+
Front-load contributions early in year
Contribute through payroll for FICA savings

📈 Investment Growth

Invest HSA funds for long-term growth
Keep 3-6 months expenses in cash
Use low-cost index funds
Rebalance annually

🧾 Save Receipts

Keep all medical expense receipts
Pay out-of-pocket when possible
Reimburse yourself later (no time limit)
Maximize tax-free growth period

🏥 Retirement Planning

Estimate healthcare costs in retirement
Plan for Medicare supplement premiums
Consider long-term care expenses
Use as retirement account after 65

HSA vs Other Tax-Advantaged Accounts

Account Type	Contribution	Growth	Withdrawal	Special Features
HSA	Tax-deductible	Tax-free	Tax-free (medical)	No RMDs, rollover unused funds
Traditional 401(k)	Tax-deductible	Tax-deferred	Taxed as income	Employer match, RMDs at 73
Roth IRA	After-tax	Tax-free	Tax-free	No RMDs, income limits
FSA	Pre-tax	No growth	Tax-free (medical)	Use-it-or-lose-it rule

How to Use This HSA Calculator

Select Analysis Type

Choose annual savings or retirement planning

Enter Coverage Info

Select individual or family coverage

Set Contribution

Enter your planned annual contribution

Add Tax Information

Include marginal tax rates and payroll savings

Set Investment Details

Enter expected returns and time horizon

Calculate Benefits

See tax savings and growth projections

💡 HSA Planning Tips

💰

HSAs are the only account with triple tax advantages - maximize contributions if eligible

📊

Keep detailed records of medical expenses for future reimbursement flexibility

🎯

Invest HSA funds for long-term growth rather than keeping everything in cash

⏰

Consider HSAs as retirement accounts - healthcare costs increase significantly with age

📋

Review HDHP options annually during open enrollment to maintain HSA eligibility