How can your HSA work for you?
The key to an HSA is that you own all contributions and earnings and you decide when to use them. Bank Midwest will provide you with background education to use these dollars to your advantage.
This calculator allows you to answer some basic personal and medical coverage questions, then shows you how the HSA can evolve into a key savings tool for you and your family.
Help us get you started by inputting some basic information.
HSA Growth and Tax Savings
HSA Growth Over Years
Tax Savings Over Years
The HSA is one of the few investment options that provides a triple tax benefit.
- Contributions to an HSA are tax-deferred reducing your income tax.
- Earnings on the HSA continue to grow tax-deferred.
- All contributions and earnings in HSAs become tax-exempt if used for qualified medical expenses.
Are You HSA Eligible – To be eligible for an HSA, you must satisfy four requirements
- Covered by an HSA-eligible high deductible health plan (HDHP) on the first day of the month that the HSA is established. (see chart below)
- Generally not covered by any additional health plan that is not an HDHP.
- Not enrolled in Medicare.
- Not eligible to be claimed as a dependent on someone else’s tax return.
High-deductible Health Plan Eligibility
Two key factors determine if an HDHP is HSA-eligible.
Type of Coverage – When determining HSA eligibility and allowable contribution amounts, it is important to know the type of coverage your medical insurance provides.
Single – Single coverage or self-only coverage provide coverage for the individual only.
Family – Family coverage includes any multiple person policy including, but not limited to, family, self + 1, self + child.
Catch-up contributions – HSA owners who are age 55 or older in the year they make the HSA contribution may also be eligible to contribute up $1,000 above the normal limit. Under family coverage and when a spouse is also covered and age 55 or older, they may also contribute up to an additional $1,000.
Federal Income Tax Rates
The tax savings illustrated here are based on your assumption of related income taxes. Federal income tax rates for 2019 are shown below.
State Income Tax – Not all states charge a state income tax. Use the scale above at 0% if your state does not have an income tax.
Other – This calculator is for illustration purposes only. You should always seek competent advice from financial and tax professionals before making any type of investment.