Everyone’s retirement age is different. This age could be the year you start receiving Medicare benefits. For HSA specifics, this could be the year you begin withdrawing funds from your HSA after you turn 65.
The amount of income you earn the year you open your HSA. We use this to estimate your average tax rate and project the tax savings from your HSA contributions.
Current HSA Balance
The amount you already have in your health savings account the first month after you open it.
Annual HSA Contributions
The estimated total amount you expect to contribute to your HSA each year.
Annual HSA Expenses
The estimated amount you'll pay each year from your HSA for qualified medical and healthcare costs.
Rate of Return
The rate of return you expect to receive on unused funds which rollover from year to year in your HSA. This value is dependent on your plan to invest your HSA funds, and your risk tolerance will change based on market conditions.
Projected HSA Balance
The estimated amount of funds that you will have in your health savings account at your retirement age from making contributions and investing your funds.
Projected Tax Savings
Cumulative Net Deposits
The total contributions you will have made minus expenditures for qualified medical and healthcare costs by the year you may retire.
Cumulative Asset Growth
The estimated amount that your HSA contributions will grow based on your target rate of return and the estimated year you may retire.
What is an HSA?
A health savings account (HSA) allows you to save tax-advantaged money (pre-tax for contributions made from paychecks, tax deductions for direct contributions) to be spent on qualified medical expenses. Those can include most medical, dental and pharmacy bills, co-payments and coinsurance. The most common way to access these funds is with an HSA debit card.
You can also reimburse yourself from the account for your own medical expenses paid out-of-pocket (expense requirements are quite liberal). This means you're spending "tax-free" money for most medical costs, creating enormous potential tax savings when utilizing an HSA.
Who is eligible to open an HSA?
Your health insurance must be classified as an HSA-eligible High Deductible Health Plan (HDHP) and this must be your only health insurance. This insurance coverage type charges lower-than-normal premium payments, but the minimum HDHP deductible amount is high and changes annually.
The IRS sets minimum-deductible and out-of-pocket maximums, as well as HSA-contribution limits for HDHPs and HSAs each year.
You can't be claimed as a dependent on anyone else's taxes and you can't contribute to an HSA once you start receiving Medicare Part A benefits.
What designates a qualifying High Deductible Health Plan?
A High-Deductible Health Plan (HDHP) is a health insurance plan traditionally defined by lower premiums and higher deductibles. For a health plan to be considered a qualifying, high-deductible health plan, or HSA-eligible, it must meet the IRS's annual minimum deductible and out-of-pocket maximum set annually. These two amounts are indexed annually for inflation.
The health insurance plan must also be designed so that the individual or family (two or more individuals) pay the cost of healthcare up to the deductible before any insurance kicks in (preventative care excluded from this definition).
How much can I contribute to an HSA?
The maximum HSA annual contribution limits for 2024 are $4,150 for individual coverage and $8,300 for family coverage. If you are 55 or older, you can contribute an additional $1,000 catch-up contribution.
The maximum contribution limits for 2023 are $3,850 for individuals and $7,750 for families. If you are 55 or older, you can contribute an additional $1,000 catch-up contribution.
You can read more about contribution limits in our HSA Guide.
How can I open an HSA?
Opening or transferring your HSA to Lively is easy and you won’t be surprised by hidden fees. You can sign up here.
If your employer offers an HSA as an employee benefit, you can open one through them. Since each HSA is owned by an individual, you can open an account through any provider, at any time. You don’t have to wait until open enrollment.