Client Information
55+ qualifies for catch-up
Federal + state combined
📋 2025 HSA Contribution Limits
▼
2025 HSA Contribution Limits:
Self-Only Coverage:
- Under 55: $4,300
- Age 55+: $5,300 (+$1,000)
Family Coverage:
- Under 55: $8,550
- Age 55+: $9,550 (+$1,000)
HDHP Requirements (2025):
• Minimum Deductible: $1,650 (self) / $3,300 (family)
• Maximum Out-of-Pocket: $8,300 (self) / $16,600 (family)
• Minimum Deductible: $1,650 (self) / $3,300 (family)
• Maximum Out-of-Pocket: $8,300 (self) / $16,600 (family)
The Triple Tax Advantage
1
Tax-Deductible
Contributions reduce your taxable income (above-the-line deduction)
$63,270
Annual Contribution: $8,550
× Tax Bracket: 37%
= Annual Tax Savings: $3,164
× Years: 20
2
Tax-Free Growth
Investments grow without capital gains or dividend taxes
$97,000
HSA at Retirement: $342,000
Taxable Account: $245,000
Taxable account reduced by tax drag on dividends (23.8%) and after-tax contributions
3
Tax-Free Withdrawals
No tax on qualified medical expense withdrawals
$126,540
HSA at Retirement: $342,000
× Tax Bracket: 37%
Tax you'd pay if this were a Traditional IRA withdrawal
Annual Contribution
$8,550
Years to Retirement
20
HSA at Retirement
$342k
Triple Tax Benefit
$287k
HSA vs. Taxable Brokerage Account ▼
📊 Taxable Brokerage Account
Contributions with after-tax dollars, investments taxed annually, withdrawals taxed
$245,000
After paying taxes on contributions, dividends, capital gains, and withdrawals
🏥 HSA Account
Triple Tax
Pre-tax contributions, tax-free growth, tax-free qualified withdrawals
$342,000
100% of growth available for medical expenses — tax-free forever
| Feature | Taxable Brokerage | HSA Account | Difference |
|---|
The "Stealth IRA" Strategy ▼
🥷 The "Stealth IRA" Strategy
Pay medical expenses out-of-pocket today, keep receipts indefinitely, and reimburse yourself years later. There's no time limit on reimbursement — your HSA becomes a tax-free retirement account.
1
Contribute Max
Fund HSA to limit every year
2
Pay Out-of-Pocket
Cover medical expenses with cash
3
Invest & Grow
Let HSA compound tax-free
4
Reimburse Later
Withdraw tax-free in retirement
Example: You have $50,000 in medical receipts saved over 20 years. At retirement, withdraw $50,000 from your HSA — completely tax-free — for any purpose.
Future Value Projections ▼
HSA Growth Over Time
Taxable Account (after-tax)
HSA (tax-free)
Year-by-Year HSA Growth
| Age | Year | Annual Contrib | HSA Balance | Taxable Equiv | Tax Advantage |
|---|
HSA After Age 65 ▼
🎂 Age 65+ Flexibility: After 65, you can withdraw HSA funds for ANY purpose — not just medical.
Non-medical withdrawals are taxed as ordinary income (like a Traditional IRA), but there's no 20% penalty.
Medical withdrawals remain 100% tax-free.
| Age | Milestone | HSA Balance | Medical Use (Tax-Free) | Non-Medical (Taxed as Income) |
|---|
HSA Investment Comparison ▼
⚠️ Most HSA providers limit investment options. Consider Fidelity, Lively, or HSA Bank for self-directed investment access with low fees.
| Investment Approach | Expected Return | 20-Year FV ($8,550/yr) | Risk Level |
|---|---|---|---|
| Cash / Money Market | 4% | $254,000 | Very Low |
| Bond Index Fund | 5% | $283,000 | Low |
| Balanced Fund (60/40) | 6% | $315,000 | Moderate |
| S&P 500 Index Fund | 7% | $351,000 | Moderate |
| Growth Fund | 8% | $392,000 | Higher |
| Aggressive Growth | 9% | $437,000 | High |