Tools HSA Triple-Tax Growth Simulator
What could an invested HSA be worth at retirement?
Project invested HSA savings and estimated tax benefits, compared with spending contributions on medical bills each year.
Your result
- Projected HSA wealth at retirement
- Total taxes saved today
Keep this result beside the assessment. Complete its questions to update your score.
How this tool works
Contributions arrive at year end and compound annually. The cash-spent scenario assumes medical bills equal each annual contribution, paid from the HSA; the initial balance remains uninvested with no interest. The investing scenario pays those bills out of pocket, an additional cash expense, and leaves the HSA invested. This is an HSA balance comparison, not total household wealth. Tax savings equal contributions × (marginal rate + 7.65%) × years. Payroll tax savings assume eligible payroll contributions and full FICA avoidance; direct contributions generally do not avoid FICA. Returns are nominal, before fees, and not guaranteed. The requested $4,300 starting contribution is below the 2026 individual limit of $4,400 ($8,750 family); eligibility, employer contributions, catch-up rules and Medicare can change your allowable amount. This model assumes eligibility through the selected retirement age.
Common questions
What are the three HSA tax advantages?
Eligible contributions reduce taxable income, investment growth is tax-free, and qualified medical withdrawals are tax-free. State treatment can differ, and nonqualified withdrawals may trigger taxes and penalties.
Does everyone save 7.65% in payroll taxes?
No. This simplified estimate assumes eligible salary-reduction contributions and full FICA savings. Direct contributions, wage limits and individual circumstances can reduce that benefit.
What does the cash-spent line assume?
Each year you spend that year’s contribution on qualified medical bills and keep the initial balance in cash earning zero interest. Investing instead requires paying the same bills out of pocket, so the chart is not a comparison of total net worth.
Sources
This tool is for informational and educational purposes only. It is not financial, tax, or legal advice. Consult a qualified professional for guidance specific to your situation.