Evaluate the real value of an HSA-eligible health plan beyond the headline tax benefits. This tool estimates potential savings and tradeoffs using simplified assumptions.
Used to calculate tax savings on HSA contributions.
Your estimate of gross medical costs before insurance.
Up to the IRS limit ($4,150 individual / $8,300 family for 2024).
How long do you plan to hold these funds?
The HSA plan requires $2,500 more in available cash to cover your deductible in a worst-case scenario. Ensure your emergency fund is sufficient.
By choosing the HSA plan, you are generating an immediate 18% effective reduction in your health costs through tax avoidance.
HSAs are the most tax-efficient vehicle in the US code. Contributions are tax-deductible (pre-tax), growth is tax-free, and withdrawals for qualified medical expenses are tax-free. Unlike an FSA, these funds never expire.
Traditional plans (PPO/HMO) offer "first-dollar" coverage with lower deductibles but higher monthly premiums. HSA-eligible plans (HDHPs) trade higher upfront risk for lower premiums and significant tax savings. The "best" plan depends on your expected medical usage and cash reserves.
Many believe an HSA is "use it or lose it"—that is an FSA. HSA funds are yours forever, even if you change jobs. Another myth is that you can't use HSA funds for dental or vision; in reality, most qualified medical, dental, and vision expenses are covered.