HSA Triple Tax Advantage
Contributions are pre-tax, growth is tax-free, withdrawals for medical expenses are tax-free. See what an HSA is actually worth compared to a regular investment account.
$
$
%
%
$
Annual Tax Savings on Contributions
$946
22.0% combined rate
HSA Balance at Retirement
$334,428
After 25 years at 7%
vs. Taxable Account (same contributions)
$196,887
HSA wins by $137,541
Tax Drag Cost (Taxable Account)
$137,541
What you'd give up vs HSA
Account Comparison at Retirement
HSA
Final Balance
$334,428
Lifetime Tax Savings (contributions)
$23,650
Medical Withdrawals Taxed
No (qualified expenses)
Advantage vs Taxable
$137,541
Advantage vs IRA
$107,441
Traditional IRA
Final Balance (pre-tax)
$291,009
After-Tax Value
$226,987
Medical Withdrawals Taxed
Yes, at ordinary income rate
RMDs Required
Yes (at age 73)
Balance Growth: Every 5 Years
| Year | HSA Balance | Taxable Account | Traditional IRA |
|---|---|---|---|
| Year 5 | $37,680 | $20,457 | $26,459 |
| Year 10 | $79,307 | $48,750 | $63,569 |
| Year 15 | $137,691 | $87,879 | $115,619 |
| Year 20 | $219,578 | $141,994 | $188,620 |
| Year 25 | $334,428 | $216,835 | $291,009 |
The most powerful HSA strategy: pay all qualified medical expenses out of pocket, save your receipts, and let your HSA grow tax-free indefinitely. No deadline to reimburse yourself: a receipt from 2026 can be used to take a tax-free withdrawal in 2045. This turns your HSA into a stealth retirement account with no RMDs and tax-free medical withdrawals at any age.