PlanWise

HSA-as-Retirement Projection Calculator

Using an HSA as a retirement account means contributing the maximum, investing the balance, and paying current medical bills out of pocket so the account compounds tax-free for decades. Contributions are pre-tax, growth is untaxed, and withdrawals for qualified medical expenses are always tax-free; after age 65 you can also withdraw for any reason, paying only ordinary income tax (no penalty) — like a traditional IRA. This calculator projects the tax-free balance from your contributions, return and time horizon. It is an estimate, not investment or tax advice.

Source: IRS Rev. Proc. 2025-19 (2026 HSA limits). Data as of 2026-06-14.

Total contributed:

Projected tax-free balance:

Of which is tax-free growth:

Income tax saved on one year's contribution:

Estimate only — not investment or tax advice. Assumes contributions are invested and grow tax-free, and that future withdrawals are for qualified medical expenses (tax-free) — after age 65, non-medical withdrawals are taxed as ordinary income but carry no penalty. 2026 family limit is $8,750 (IRS Rev. Proc. 2025-19); returns are not guaranteed.

How it works

Enter a starting balance, your annual contribution (up to $8,750 for family coverage in 2026), years to retirement, and an expected return. The tool compounds the starting balance and treats yearly contributions as an end-of-year annuity to project the future balance, then splits out how much of that is tax-free growth. Investment returns are not guaranteed and balances will vary.

Important: This tool is a general estimate for educational purposes only and is not medical, tax, insurance, or financial advice. Figures use the published 2026 limits but your situation may differ. Verify with the primary source and a qualified professional. See our full disclaimer and methodology.

Frequently asked questions

Why use an HSA for retirement instead of just medical bills?

An HSA is the only account that is triple-tax-advantaged. If you pay current medical costs out of pocket and let the HSA stay invested, the balance grows tax-free and can fund the large healthcare costs that are common in retirement.

What happens to my HSA at age 65?

Qualified medical withdrawals remain tax-free at any age. After 65, non-medical withdrawals are allowed without the 20% penalty but are taxed as ordinary income — the same treatment as a traditional IRA.

Can I keep contributing to an HSA after I retire?

Only while you have qualifying HDHP coverage and are not enrolled in Medicare. Once you enroll in Medicare you can no longer contribute, though you can still spend the balance tax-free on qualified expenses.

Related tools

Last updated: 2026-06-14