Retirement Tools
HSA Triple Tax Advantage Calculator
See the up-front tax savings and tax-free growth of a health savings account, compared with an ordinary taxable account.
This is a rough estimate for education, not tax advice. It assumes qualified medical withdrawals (tax-free) and ignores any capital gains tax the comparison taxable account would otherwise owe, which understates the HSA's real advantage. Nothing you type is sent anywhere.
Why an HSA has three tax advantages
Contributions are tax-deductible (or pre-tax through payroll), the balance grows tax-free, and withdrawals for qualified medical expenses are tax-free too. No other common account gets all three. This calculator shows your yearly tax deduction, the tax-free future value of your contributions, and compares it with investing the same take-home-pay-equivalent amount in an ordinary taxable account.
Frequently asked questions
Do I have to spend it on medical costs each year?
No. Unused HSA funds roll over indefinitely and can be invested, unlike most flexible spending accounts.
What if I withdraw for something other than medical expenses?
Before age 65 that is normally taxed as income plus a 20% penalty. After 65, it is taxed as income like a Traditional IRA, with no penalty.
Related: the Roth vs. Traditional calculator and the savings calculator.