HSA Calculator

The Triple Tax Advantage

• Tax-deductible contributions: Reduces taxable income
• Tax-free growth: No taxes on investment earnings
• Tax-free withdrawals: For qualified medical expenses

2025 Contribution Limits

• Self-only coverage: $4,300
• Family coverage: $8,550
• Age 55+ catch-up: Additional $1,000
• Limits include employer contributions

HSA Eligibility Requirements

• Enrolled in a High-Deductible Health Plan (HDHP)
• 2025 HDHP minimum deductible: $1,650 (self) / $3,300 (family)
• 2025 HDHP max out-of-pocket: $8,300 (self) / $16,600 (family)
• Not enrolled in Medicare
• Not claimed as a dependent

HSA Investment Strategies

• Invest for growth: Choose low-cost index funds
• Pay out-of-pocket: Let HSA compound tax-free
• Save receipts: Reimburse yourself years later, tax-free
• No time limit: Unlike FSA, HSA funds never expire

HSA After Age 65

• Can withdraw for any purpose (taxed like Traditional IRA if not medical)
• No 20% penalty for non-medical withdrawals after 65
• Can pay Medicare premiums (except Medigap) tax-free
• Continues to be tax-free for qualified medical expenses

FICA Advantage Over 401(k)

Unlike 401(k) contributions, HSA payroll contributions avoid both income tax AND FICA taxes (7.65%). This makes HSAs even more valuable than retirement accounts for those who can max out both.

State Tax Note

California and New Jersey do not recognize HSA tax benefits at the state level. Residents of these states still get federal benefits but must pay state income tax on contributions and earnings.