HSA Future Value Calculator

Project the future value of your Health Savings Account (HSA) with contributions and investment growth

Account Information

Current HSA Balance

Annual HSA Contribution

Number of Contribution Years

Annual Contribution Increase (%)

Investment Parameters

Expected Annual Return (%)

Years to Project

Expected Inflation Rate (%)

Marginal Tax Rate (%)

HSA Projection Results

Total Contributions

$0.00

Sum of all contributions made to HSA

Investment Growth

$0.00

Estimated growth from investments

Future Account Value

$0.00

Projected total value at end of period

HSA Growth Projection

Year-by-Year Projection

Year	Contribution	Account Value	Growth	Tax Savings

This calculator provides estimates only. Actual results may vary. Print Results

An HSA Future Value Calculator helps you project the long-term growth of your Health Savings Account (HSA) contributions, factoring in tax savings, investment returns, and compounding over time.

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Key Inputs for the Calculator

1. Annual Contribution – Your yearly HSA deposit (2024 limits: $4,150 individual / $8,300 family + $1,000 catch-up if 55+).

2. Current HSA Balance – Existing funds (if any).

3. Investment Return Rate – Expected annual growth (e.g., 5-7% for a balanced portfolio).

4. Time Horizon – Years until withdrawal (e.g., 10, 20, or 30 years).

5. Tax Savings – Federal/state tax rates + FICA savings (if payroll deducted).

6. Withdrawal Strategy – For medical expenses (tax-free) or retirement (penalty-free after 65).

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How It Works: The Power of Triple Tax Advantage

HSAs offer three layers of tax benefits:

1. Tax-deductible contributions (reduce taxable income).

2. Tax-free growth (no capital gains/dividend taxes).

3. Tax-free withdrawals (for qualified medical expenses).

Future Value Formula (With Annual Contributions)

$$FV=P\times (1+r{)}^t+C\times \left(\frac{(1+r{)}^t-1}{r}\right)$$

Where:

• FV = Future Value

• P = Initial HSA balance

• C = Annual contribution

• r = Annual investment return (decimal)

• t = Time in years

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Example Calculation

Parameter	Value
Current Balance	$5,000
Annual Contribution	$4,150
Investment Return	6%
Time Horizon	20 years

Future Value:

$$FV=5,000\times (1.06{)}^{20}+4,150\times \left(\frac{(1.06{)}^{20}-1}{0.06}\right)$$$$FV=5,000\times 3.21+4,150\times 36.78$$$$FV=\mathrm{\$}16,050+\mathrm{\$}152,637=\ast \ast \mathrm{\$}168,687\ast \ast$$

Interpretation:

• A $5,000 starting balance + $4,150/year at 6% growth becomes ~$168,687 in 20 years—all tax-free for medical expenses.

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Why Use This Calculator?

✅ Retirement Planning – HSAs can supplement retirement savings (after age 65, non-medical withdrawals are penalty-free, just income-taxed like a Traditional IRA).
✅ Tax Optimization – Compare HSA growth vs. taxable brokerage accounts.
✅ Healthcare Cost Preparedness – Estimate future medical expense coverage.

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HSA vs. 401(k)/IRA Growth

Account Type	Tax Deduction	Tax-Free Growth	Tax-Free Withdrawals (Medical)
HSA	Yes	Yes	Yes
Roth IRA	No	Yes	No
Traditional 401(k)	Yes	No	No

Key Insight:

• $1 in an HSA is worth ~$1.30–$1.50 in a 401(k)/IRA due to triple tax benefits (Study by Fidelity).

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Maximizing Your HSA

1. Max Out Contributions – Hit annual limits (e.g., $4,150 in 2024).

2. Invest Early – Don’t leave funds in cash; invest in low-cost index funds.

3. Delay Reimbursements – Pay medical costs out-of-pocket now, withdraw tax-free later.

4. Use for Retirement – After 65, withdraw for any purpose (income tax only, no penalty).

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Real-World Scenarios

Strategy	20-Year Growth (6%)
Contribute $4,150/year	~$168,687
Contribute $8,300/year (family)	~$337,374
One-time $5,000 + $4,150/year	~$168,687 (above)

Note: These figures are tax-free if used for medical expenses.

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Try It Yourself

Quick Estimate:

• Every $10,000 invested in an HSA at 6% for 30 years → ~$57,435 tax-free.

• Compare to a taxable account (25% capital gains tax): ~$43,076 after taxes.