HSA Investment Growth Calculator

HSA Growth Projector

The "Stealth IRA" for early retirees. See the power of tax-free growth.

2025 Limit: $4,300 (Self) / $8,550 (Family)
To calculate tax savings.

How This Tool Works

This calculator estimates the future value of your Health Savings Account (HSA), often called the "Stealth IRA" due to its powerful tax advantages.

  • Triple Tax Advantage: Contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.
  • The Strategy: By paying current medical bills out-of-pocket and letting the HSA stay invested, you can accumulate a massive, tax-free pot of wealth for retirement.
  • Age 65 Rule: After age 65, your HSA functions like a Traditional IRA; you can withdraw funds for any reason (pay income tax, but no penalty).

How to Use (Steps)

  1. Current Balance: What you have invested in your HSA today.
  2. Annual Contribution: Your yearly addition (stay within IRS limits).
  3. Expected Return: 7% is a standard baseline for invested funds.
  4. Years to Grow: How long before you intend to start using the funds.

Example Calculation

Scenario: 25 Years of Max Contributions.

• Initial Balance: $5,000.
• Annual Addition: $4,150 (2024 Self-Only Limit).
• Expected Return: 7%.
• Future HSA Value: $293,420.
• Tax Savings: Approx. $73,000+ (at 25% effective tax rate).

Why This Tool Is Accurate

This tool accounts for the compounding effect of monthly contributions and annual growth. It specifically addresses the "invested" portion of the HSA, rather than just a cash savings account, to help you visualize the long-term wealth potential of this account type.

Limitations & Disclaimer

IRS contribution limits change annually. If you use funds for non-medical reasons before age 65, you face a hefty 20% penalty. Disclaimer: This tool assumes all growth remains within the account; it is not tax advice.

Frequently Asked Questions

What is the "Stealth IRA" strategy?

It involves maxing out your HSA but never using it for current medical bills. Instead, you save your receipts, let the money grow tax-free for decades, and then "reimburse" yourself tax-free years or decades later.

Can I invest my entire HSA balance?

Most HSA providers require you to keep a small cash "cushion" (usually $1,000 to $2,000) before you can move the remaining balance into investment funds like index funds or ETFs.

What happens if I die with money in my HSA?

If your spouse is the beneficiary, it remains an HSA. For any other beneficiary, the account stops being an HSA and the value becomes taxable income to the beneficiary in the year of your death.