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About This Calculator
Calculate the 20-year compound growth of a Health Savings Account (HSA) exploiting its triple tax advantage (tax-free contribution, growth, and withdrawals) vs 401(k) and taxable brokerage.
Frequently Asked Questions
What makes the HSA 'Triple Tax Advantaged'?
1) Contributions are 100% tax-deductible (and exempt from FICA 7.65% when contributed through payroll). 2) Growth and dividends compound completely tax-free. 3) Withdrawals for qualified medical expenses are completely tax-free at any age.
Can you use an HSA as a stealth retirement account?
Yes! Unlike FSAs with 'use-it-or-lose-it' rules, HSA funds never expire. Savvy investors pay current medical bills out of pocket, save receipts in a digital folder, invest HSA funds in stock index funds for decades, and reimburse themselves tax-free in retirement.
What happens to an HSA at age 65?
At age 65, you can withdraw HSA funds for non-medical expenses without any penalty, taxed as ordinary income just like a Traditional IRA, while maintaining tax-free withdrawals for Medicare premiums and healthcare.
What HDHP health insurance is required to contribute?
To contribute to an HSA, you must be enrolled in an IRS-qualified High Deductible Health Plan (HDHP) with no disqualifying first-dollar coverage and cannot be enrolled in Medicare or claimed as a dependent.