Health Savings Account (HSA) Savings Calculator

In order to put money into an HSA you are required to have a High Deductible Health Plan (HDHP) in effect for either you or your family. A HDHP is simply health insurance that meets certain minimum deductible and maximum out-of-pocket expense requirements. In 2009, a HDHP has a minimum deductible of $1,150 for self-only coverage and $2,300 for family coverage. A HDHP must also have a maximum out-of-pocket expense per year, excluding the cost of premiums, of $5,800 for self only coverage and $11,600 for family coverage.

For complete details on HSAs you may wish to visit the U.S. Treasury at http://www.treas.gov/offices/public-affairs/hsa/

What is your HDHP deductible amount?
Your HDHP deductible amount is the amount you pay toward your own medical expenses, in a given year, before your insurance begins to cover any expenses. In 2009, for a HDHP, the minimum deductible amount is $1,150 for self-only coverage and $2,300 for family coverage.

What is your type of HDHP coverage?
Choose the insurance coverage type for your HDHP. Your choices are "Family" or "Single".

What is the balance in your HSA?
The total amount currently saved in your HSA.

How much will you put into the HSA per month?
The amount you will contribute each month to your HSA. This calculator assumes that you make your contribution at the beginning of each month. Your monthly contributions are limited by the annual maximum allowed. This calculator doesn't take catch-up contributions into account when calculating your maximum annual contribution.

How much do you expect to spend on healthcare per month?
The amount per month you expect to spend on qualifying medical expenses.

How many years do you have to save before retirement?
The number of years you will be able to save (contribute) into your HSA before you retire.

Annual rate of return
This is the annual rate of return you expect to receive on your HSA funds. The actual rate of return is largely dependent on the type of investments you select. From January 1970 to December 2008, the average annual compounded rate of return for the S&P 500, including reinvestment of dividends, was approximately 9.7% (source: www.standardandpoors.com). During this period, the highest 12-month return was 61%, from June 1982 through June 1983. The lowest 12-month return was -39%, which happened twice, once from September 1973 to September 1974 and again from November 2007 to November 2008. Savings accounts at a bank may pay as little as 1% or less but carry significantly lower risk of loss of principal balances.

It is important to remember that these scenarios are hypothetical and that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are generally subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment. It is not possible to invest directly in an index and the compounded rate of return noted above does not reflect sales charges and other fees that funds and/or investment companies may charge.

Expected Inflation Rate
What you expect for the average long-term inflation rate. A common measure of inflation in the U.S. is the Consumer Price Index (CPI), which has a long-term average of 3.1% annually, from 1925 through 2008. The CPI for 2008 was 4.0%, as reported by the Minneapolis Federal Reserve.

Federal tax rate
Your marginal federal tax rate. Use the table below to help you choose the appropriate tax rate.