Contributions plus tax-free growth can make an HSA a serious long-term account.
A health savings account (HSA) calculator projects what your HSA could grow to over time when you contribute regularly and invest the balance, taking advantage of the account's unusual triple tax benefit.
An HSA is the only account that is tax-advantaged three ways: contributions are pre-tax (lowering this year's taxable income), the money grows tax-free, and withdrawals for qualified medical expenses are tax-free too. No other account combines all three. To use one you must be enrolled in a qualifying high-deductible health plan, and the IRS sets an annual contribution limit that adjusts over time.
Many people spend from their HSA each year, but its real power shows when you invest the balance and let it compound, paying current medical bills out of pocket and leaving the HSA to grow. After age 65 you can withdraw for any purpose without penalty (paying only ordinary income tax on non-medical withdrawals, much like a traditional retirement account), while medical withdrawals stay tax-free. That makes a funded HSA one of the most efficient retirement-savings vehicles available.
Contributions go in pre-tax, growth is tax-free, and withdrawals for qualified medical costs are tax-free. It's the only account with all three benefits.
The IRS sets an annual limit that rises over time and differs for individual versus family coverage, with a catch-up amount at 55+. Check the current year's figure, then enter your contribution above.
Usually yes, once you're above a minimum cash threshold set by your provider. Investing and letting it compound is what unlocks the account's long-term value.
See the exact formula and a worked example on our methodology page.