Hsa Calculator

How to Use the HSA Calculator

Using the HSA Calculator involves a series of steps where you input your personal and financial information and then examine the results. Follow the guide below to make the most of this tool.

Step 1: Input Your Coverage Type

Start by selecting your Coverage Type. You will have two options:

• Self-only Coverage
• Family Coverage

This selection will affect your annual contribution limit calculation.

Step 2: Enter Your Age

In the field labeled Your Age, input your current age. Please note that the age must be between 18 and 120. This information is necessary as it influences the contribution limit, particularly if you are 55 years or older, where catch-up contributions are allowed.

Step 3: Fill in Your Financial Details

Provide the details of your financial situation as prompted by the following input fields:

• Annual Income ($): Enter your annual income. This value must be a non-negative number and is crucial for understanding your taxable situation related to HSA contributions.
• Current HSA Balance ($): Input the current balance in your Health Savings Account. This should also be a non-negative number.
• Planned Annual Contribution ($): Specify how much you plan to contribute to your HSA this year. This value needs to be non-negative and will be used to calculate your potential tax savings and check against the contribution limit.
• Estimated Annual Medical Expenses ($): Estimate your expected medical expenses for the year, in dollars. Inputting this will help project your year-end HSA balance.

Step 4: Review the Results

After entering all required information, review the calculated results:

• Annual Contribution Limit: This displays your maximum allowable contribution based on your age and coverage type, formatted in USD.
• Remaining Contribution Allowed: This shows how much more you can contribute after considering your planned annual contribution.
• Estimated Annual Tax Savings: This indicates your potential tax savings by contributing to the HSA, calculated using an assumed tax rate of 22%.
• Projected Year-End Balance: This is your anticipated balance at the end of the year after accounting for contributions and estimated medical expenses.
• Over Contribution Warning: This provides a text notification if your planned contributions exceed the annual limit, reminding you to adjust accordingly.

Make sure to verify each input field and ensure accuracy for the best analysis. Utilize the HSA Calculator regularly to manage your health savings strategies effectively.