Health Savings Account (HSA) Tax Calculator

Plan eligibility:

You must be enrolled in a qualified high-deductible health plan (HDHP) and have no other disqualifying coverage (e.g., general-purpose FSA, Medicare).

Annual contribution limits (2025):

• Individual coverage: $4,300
• Family coverage: $8,550
• Catch-up contribution (age 55+): Additional $1,000

(2026 limits expected mid-2025 – adjust when IRS announces.)

Tax advantages:

HSA contributions are tax-deductible, grow tax-free, and can be withdrawn tax-free for qualified medical expenses.

Portability:

HSAs are owned by the employee, not the employer. Funds stay with you, even if you change jobs or retire.

Rollover:

Unlike FSAs, HSA balances roll over from year to year with no forfeiture.

Qualified expenses:

Can be used for medical, dental, vision, and certain over-the-counter items. See IRS Publication 502 for full list.

Recordkeeping:

Keep documentation for all distributions in case of IRS audit — especially for reimbursements made years later.

Ineligible uses / penalties:

Distributions for non-qualified expenses are taxable and subject to a 20% penalty (unless age 65+, disabled, or deceased).