HSA Investment & Triple-Tax Growth Calculator
Forecast future retirement wealth in a Health Savings Account (HSA), calculate upfront tax savings, and compound tax-free index fund growth to age 65.
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Frequently Asked Questions
Why is an HSA called the 'Triple Tax-Advantaged' account?
Health Savings Accounts offer the most tax-favored status in the US tax code: 1. Contributions are 100% tax-deductible (pre-tax). 2. Investment growth, dividends, and interest compound completely tax-free. 3. Withdrawals for qualified medical expenses are 100% tax-free at any age.
What happens to an HSA at age 65?
Once you turn 65, the 20% penalty for non-medical withdrawals permanently disappears. You can withdraw funds for any purpose (vacations, living expenses) and simply pay ordinary income tax—exactly like a Traditional 401(k) or IRA—while medical withdrawals remain 100% tax-free for life.
What is the 'shoebox strategy' for HSA investing?
Smart investors pay current out-of-pocket medical bills with normal cash, leave their HSA funds fully invested in index funds, and save digital copies of their receipts. You can reimburse yourself tax-free from the HSA decades later in retirement with no time limit.
Who is eligible to contribute to an HSA?
To open and contribute to an HSA, you must be enrolled in a qualified High Deductible Health Plan (HDHP) and cannot be covered by other non-HDHP health insurance or enrolled in Medicare.