How this number is made
An HSA contribution made pre-tax avoids income tax at your marginal rate, and qualified medical withdrawals are tax-free. This page grows the contribution and shows the income tax you did not pay on the contributions themselves. It does not apply a contribution limit, payroll-tax savings, or the tax on a non-qualified withdrawal. The limit changes by year and by the health plan. Confirm it before you contribute.
- The marginal rate is yours, not a bracket the page looks up.
- The return is whatever the HSA is invested in. Cash is not 5%.
Formula
Balance is the monthly compound growth of the yearly contribution. Tax not paid on contributions = yearly contribution × years × marginal rate.
Worked example
With the figures already in the form, balance if the return holds is $38,821.
Questions
Does the tax savings include FICA?
No. A payroll HSA deduction can also skip Social Security and Medicare. This sketch is income tax only.
What if I spend it as I go?
Then it does not compound. The balance assumes the contribution stays invested.