HSA Calculator

An HSA is a tax-advantaged savings account for individuals with High Deductible Health Plans (HDHPs). Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are also tax-free — a triple tax advantage.

For 2026, the HSA contribution limit is $4,400 for individual coverage and $8,750 for family coverage. If you are 55 or older, you can contribute an additional $1,000 catch-up contribution.

HSAs offer three tax benefits: (1) Contributions are tax-deductible, reducing your taxable income; (2) Investment growth is tax-free; (3) Withdrawals for qualified medical expenses are tax-free. No other account offers this triple benefit.

If you contribute to your HSA through payroll deductions, you avoid FICA taxes (Social Security and Medicare) of 7.65% on your contributions. Direct contributions do not receive this FICA savings benefit.

Individuals aged 55 or older can make an additional catch-up contribution of $1,000 per year above the standard limit. This allows older savers to boost their HSA balance before Medicare eligibility at age 65.

Yes, most HSA providers offer investment options once your balance exceeds a threshold (often $1,000–$2,000). You can invest in mutual funds, stocks, and other options. Investment growth is tax-free when used for qualified medical expenses.

At age 65, you become eligible for Medicare and can no longer contribute to an HSA. However, you can still use your existing HSA funds tax-free for qualified medical expenses, including Medicare premiums.

Unlike Flexible Spending Accounts (FSAs), HSA funds roll over year to year with no “use it or lose it” rule, stay with you if you change employers, can be invested for long-term growth, and can be used in retirement for any purpose (with income tax on non-medical withdrawals after 65). See the linked HSA vs FSA guide for a side-by-side comparison.