HSA Triple-Tax-Free Calculator
Spend now vs invest-and-reimburse-later — quantify the most powerful tax shelter in the US tax code
HSA Strategy Inputs
Recommendation: Invest & Reimburse Later
Paying medical out-of-pocket and letting the HSA compound produces $272,994 more wealth at age 55 than paying medical from the HSA.
$272,994
Wealth differential
Spend Now (Pass-Through)
Pay medical expenses from HSA each year — residual contribution invested.
Invest & Reimburse Later
Pay medical from outside cash. Save receipts. Reimburse decades later — IRS allows any time.
HSA Balance Trajectory
The dashed line shows accumulated receipts (a tax-free withdrawal IOU). At any point you can pull that much from the HSA tax-free, reimbursing yourself for past medical expenses with no time limit (IRS Rev. Rul. 2003-43). After 65, even non-medical withdrawals are taxed only as ordinary income — no penalty.