Your HSA limit, the tax it saves, and what investing the balance grows into
| Check | Status |
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The HSA is the most tax-advantaged account in America and the most misused: most holders treat it as a medical checking account, missing that it's the only vehicle where money enters untaxed (skipping FICA too, via payroll), grows untaxed, and leaves untaxed — the "triple advantage" no 401(k) or Roth matches. This calculator computes your 2025 limit, the real tax saved per contribution, and the number that changes strategies: what an invested HSA becomes by 65.
| Item | Amount |
|---|---|
| Self-only limit | $4,300 |
| Family limit | $8,550 |
| Catch-up (55+) | +$1,000 |
| Eligibility | Enrolled in a qualifying high-deductible health plan (HDHP: min deductible $1,650/$3,300), no other coverage, not on Medicare |
| Employer contributions | Count against your limit — free money, but subtract it |
A 22%-bracket payroll contribution saves 29.65% immediately (bracket + 7.65% FICA — 401(k) contributions don't skip FICA), then grows and exits tax-free for medical costs. Since retirees average $150k+ in lifetime medical expenses, "tax-free for medical" effectively means tax-free, period, for money you'll genuinely need. The standard funding order reflects this: 401(k) to the match → HSA to the max → back to the 401(k)/IRA.
Often — compare premium savings + employer HSA money + tax savings against the higher deductible. Healthy families and heavy planners usually come out ahead; chronic high utilizers may not. Run your real usage, not the brochure's.
Non-qualified withdrawals owe income tax + 20% penalty (pre-65). Honest mistakes can be repaid to the HSA before the filing deadline. Keep the debit card for medical only; reimburse yourself deliberately.
A spouse's general-purpose health FSA covers you too, killing your HSA eligibility — the classic two-employer trap. Limited-purpose FSAs (dental/vision only) coexist fine.
No contest when eligible: the HSA rolls over forever, invests, and is triple-tax-free; the FSA is use-it-or-lose-it. The FSA exists for people whose plans aren't HDHPs (see the FSA tool).
It's yours forever — fully portable, keeps growing and reimbursing regardless of future coverage. You just can't add NEW contributions without HDHP coverage. Old-job HSAs can be consolidated to a low-fee custodian anytime.
Once per lifetime, up to the annual limit — rarely optimal (it uses contribution room) except when facing big medical bills without HSA cash. New contributions beat the rollover when possible.
Yes — every figure computes locally in your browser.
Max it, invest it, save the receipts, and let the only triple-tax-free account in the code compound for decades. The HSA's best-kept secret isn't eligibility — it's that the investment tab exists.