HSA Calculator 2026
Calculate your triple tax advantage and project long-term HSA growth.
HSA Details
Projected HSA Balance at Retirement
$452,464
Contributions: $123,000 · Growth: $324,464
Annual Tax Savings
$1,247
Lifetime Tax Savings
$125,015
Taxable Equivalent
$619,814
Triple Tax Advantage Breakdown
Contribution Limits
Disclaimer
- HSA requires a qualifying High-Deductible Health Plan (HDHP).
- After age 65 (Medicare enrollment), you cannot contribute to an HSA.
- Non-medical withdrawals before 65 incur income tax + 20% penalty.
What Is an HSA and Why It's the Best Tax-Advantaged Account
A Health Savings Account (HSA) is the only account in the US tax code that offers a triple tax advantage: contributions are tax-deductible (or pre-tax via payroll), the money grows tax-free, and withdrawals for qualified medical expenses are never taxed. No 401(k) or IRA can match that. Financial planners often call the HSA the single most powerful savings vehicle available.
2026 HSA Contribution Limits
| Coverage | Under 55 | 55+ (Catch-Up) |
|---|---|---|
| Self-Only | $4,300 | $5,300 |
| Family | $8,550 | $9,550 |
You must be enrolled in a High-Deductible Health Plan (HDHP) to contribute. For 2026, the minimum deductible is $1,650 (self) or $3,300 (family), with out-of-pocket maximums of $8,300 (self) or $16,600 (family).
The Triple Tax Benefit Explained
- Tax deduction — Contributions reduce your federal income tax. If you contribute through payroll, you also skip FICA taxes (7.65%), a benefit not available with traditional IRAs.
- Tax-free growth — Interest, dividends, and capital gains inside the HSA are never taxed. Over decades, this compounding advantage is enormous.
- Tax-free withdrawals — Money used for qualified medical expenses comes out completely tax-free at any age.
HSA as a Retirement Account
After age 65, HSA withdrawals for any purpose are taxed as ordinary income — identical to a Traditional IRA. This means you can use your HSA as an extra retirement account. The optimal strategy: pay medical expenses out-of-pocket now, save receipts, let the HSA grow for decades, then reimburse yourself tax-free in retirement.
HSA vs FSA — Key Differences
Unlike a Flexible Spending Account (FSA), HSA funds roll over indefinitely — there's no "use it or lose it" deadline. HSAs are also portable; they stay with you when you change jobs. FSAs are limited to $3,200 (2026) and typically expire at year-end.
Frequently Asked Questions
Can I use HSA funds for my spouse or dependents?
Yes. You can use HSA money to pay qualified medical expenses for your spouse and tax dependents, even if they aren't covered by your HDHP. The key requirement is that the account holder must be enrolled in an HDHP — dependents don't need to be.
What happens to my HSA if I switch to a non-HDHP plan?
You keep your HSA and can continue spending the balance on qualified medical expenses tax-free. You just can't make new contributions until you're enrolled in an HDHP again. The funds never expire.