Health Savings Account (HSA) Savings Calculator
Use this calculator to help you determine how much your Health Savings Account (HSA) will be worth over time. Fine tune your plan by seeing what happens if you reduce your expenditures or increase your allowable deductible.
- Health Savings Account (HSA)
An HSA is a tax-advantaged account established to pay for qualified medical expenses
of an accountholder who is covered under a high-deductible health plan. With money
from this account, you pay for healthcare expenses until your deductible is met. Any
unused funds are yours to retain in your HSA and accumulate towards your future
healthcare expenses or your retirement.
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 2010, for a HDHP, the minimum deductible amount is $1,200 for self-only coverage and $2,400 for family coverage. A HDHP must also have a maximum out-of-pocket expense per year, excluding the cost of premiums, of $5,950 for self only coverage and $11,900 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 2010, for a HDHP, the minimum deductible amount is $1,200 for self-only coverage and $2,400 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.
For example, from December 1999 to December 2009, the average annual compounded
rate of return for the S&P 500 was -0.6%, including reinvestment of dividends.
From January 1970 to December 2009, the average annual compounded rate of return
for the S&P 500, including reinvestment of dividends, was approximately 10.1%
(source: www.standardandpoors.com). Since 1970, the highest 12-month return was
61% (June 1982 through June 1983). The lowest 12-month return was -43% (March 2008
to March 2009). 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 2009. The CPI for 2009 was -1.0%, 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.
Filing Status and Income Tax Rates 2010 Tax rate Married filing jointly
or qualified widow(er)
Single Head of household Married filing separately 10% $0 - 16,750 $0 - 8,375 $0 - $11,950 $0 - 8,375 15% $16,751 - 68,000 $8,376 - 34,000 $11,951 - 45,550 $8,376 - 34,000 25% $68,001 - 137,300 $34,001 - 82,400 $45,551 - 117,650 $34,001 - 68,650 28% $137,301 - 209,250 $82,401 - 171,850 $117,651 - 190,550 $68,651 - 104,625 33% $209,251 - 373,650 $171,851 - 373,650 $190,551 - 373,650 $104,626 - 186,825 35% over $373,650 over $373,650 over $373,650 over $186,825Source: http://www.irs.gov/pub/irs-drop/rp-09-50.pdf
Information and interactive calculators are made available to you as self-help tools for your personal independent use and are not intended to provide investment advice. We can not and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.