A year · your 2027 limit is $4,500
A year, before tax
More options· Through payroll, age 35, 6% growth
A year; it counts towards the limit
From 55 you can put in $1,000 more
A year; $0 to keep it all invested
A year, after fees
Tax you save in 2027
$1,557
35% of the $4,500 you put in
- What it costs you
- $2,943
- Your HSA at 65
- $365,442
- Federal income tax$990
- Social Security and Medicare$344
- State and local$223
For the $375 a month going into your HSA, your take-home pay falls by $245.
What this means
Your money goes in before income tax, Social Security and Medicare, grows without tax, and comes out tax-free for medical costs. Left invested at 6% a year, it could reach $365,442 by 65, of which $230,442 is growth.
A health FSA saves the same tax, but it’s capped at $3,400 (2026), anything unspent above $680 is lost at the end of the year, and it can’t be invested. An HSA rolls over and stays yours.
Tax you save in 2027
| Federal income tax | $990.00 |
| Social Security and Medicare | $344.25 |
| State and local tax | $222.75 |
| Total | $1,557.00 |
| You put in | $4,500 |
| 2027 limit, self-only | $4,500 |
To qualify in 2027, your health plan’s deductible must be at least $1,750, and its out-of-pocket maximum no more than $8,700.
Your HSA by 65
Assumptions in this estimate
- The tax saving uses 2026 tax rules, with the standard deduction and the child tax credit for any children you enter. Other credits and deductions can make it smaller.
- Your employer’s contributions aren’t taxed, so they aren’t part of the tax saving.
- The same amounts go in every year until 65; the limits usually rise. Medical costs paid from the HSA are tax-free.
- You stay eligible: covered by a high-deductible health plan, with no other health coverage, and not enrolled in Medicare.
- The 2027 tax brackets aren’t final yet, so the saving uses 2026’s tax rules with the 2027 HSA limits. It will be close.