HSA Contribution Calculator

The Triple Tax Advantage of an HSA

A Health Savings Account is the only account in the U.S. tax code that offers a triple tax benefit. Contributions are tax-deductible (or pre-tax if made through payroll), the money grows tax-free, and withdrawals for qualified medical expenses are never taxed. No other savings vehicle -- not a 401(k), IRA, or Roth IRA -- provides all three benefits simultaneously.

2025 HSA Contribution Limits

For 2025, individuals with self-only high-deductible health plan (HDHP) coverage can contribute up to $4,300. Those with family coverage can contribute up to $8,550. If you are 55 or older, you can make an additional $1,000 catch-up contribution. Both you and your employer can contribute, but the combined total cannot exceed the annual limit.

HSA vs. FSA: Key Differences

Unlike a Flexible Spending Account (FSA), HSA funds roll over indefinitely -- there is no "use it or lose it" rule. HSAs are also portable, meaning you keep the account even if you change jobs or health plans. FSAs are limited to $3,300 in 2025 and typically must be spent within the plan year. An HSA is generally the better choice for long-term savings, especially if you can afford to pay current medical expenses out of pocket and let the HSA balance grow.

Eligible Expenses

HSA funds can be used tax-free for a wide range of medical expenses including doctor visits, prescriptions, dental work, vision care, mental health services, and even some over-the-counter medications. After age 65, you can withdraw funds for any purpose without penalty (though non-medical withdrawals are taxed as ordinary income, similar to a traditional IRA).