The best tax break you can get.
An HSA is triple tax advantaged: deductible going in, tax-free growth, and tax-free out for medical. See your tax savings this year, how much room is left to the max, and what the balance becomes if you invest it.
Your plan
What this means
Your numbers at a glance
HSA balance if you invest and let it grow
Projected balance if invested
Contributing your amount every year and leaving it invested, paying medical costs out of pocket instead.
| After | Total contributed | Growth | Balance |
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The HSA, explained
Triple Tax Advantage
HSA is the only account with three tax breaks: contributions tax-deductible, growth tax-free, withdrawals tax-free for medical expenses. No other account does all three.
2025 Limits
Self-only HDHP: $4,150. Family HDHP: $8,300. Age 55+ catch-up: extra $1,000. Limits adjust for inflation annually. Updated each January.
The HSA Hack
Don't spend it now, invest it. Pay current medical expenses out of pocket, save receipts, let HSA grow tax-free for decades. Withdraw later (any time, no time limit) tax-free for those past expenses.
After Age 65
HSA withdrawals for non-medical expenses become like Traditional IRA, taxed as ordinary income (no penalty). Medical withdrawals stay tax-free. Best retirement healthcare account.
Common questions
Who qualifies for HSA?
Must have HDHP (high-deductible health plan). Self-only: $1,650+ deductible. Family: $3,300+ deductible. Plus no other health coverage (Medicare, FSA disqualify).
Can I invest HSA funds?
Yes, most HSA providers offer investment options once balance exceeds threshold (e.g., $1,000). Fidelity, Lively, HSA Bank all offer brokerage.
Does HSA expire?
No, unlike FSA. HSA balance carries over forever. No use-it-or-lose-it pressure.
Can I use HSA for non-medical?
Before 65: yes but 20% penalty + income tax. After 65: yes, no penalty (just income tax).
HSA vs 401(k) priority?
Generally: 401(k) up to match → HSA max → 401(k) more → IRA. HSA's triple tax advantage beats 401(k) for medical/retirement combo.
Estimates only, using 2024 HSA limits (self-only $4,150, family $8,300, plus a $1,000 catch-up at age 55 and older). Tax savings assume your contribution is fully deductible at your marginal rate. Investment growth is not guaranteed. Confirm current limits and your eligibility before contributing.