Health Savings Account Evaluator - 2016 Calculator

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This calculator compares the costs of a traditional health plan to a qualified high deductible health plan together with a health savings account. The amount in the Net savings this year field indicates the difference between the two options.

A health savings account (HSA) is a tax-exempt trust or custodial account you set up with a qualified HSA trustee to pay or reimburse certain medical expenses.

A qualified HSA trustee can be a bank, an insurance company, or anyone already approved by the IRS to be a trustee of individual retirement arrangements (IRAs) or Archer MSAs. The HSA can be established through a trustee that is different from your health plan provider.

Benefits of an HSA

To be an eligible individual and qualify for an HSA, you must meet the following requirements.

High deductible health plan (HDHP)


What will a couple save annually if they are considering adding an HSA to a plan set up as a High Deductible Healthcare Plan? In this example, the couple is expecting their first child late next year.

Note: The particular plan has a (3,000 individual / 6,000 family) deductible.

Field Input
Annual deductible (for both plan options) $3,000
Medical costs applied to annual deductible (for both plan options) $3,000
Monthly taxpayer insurance premium $296
Insurance premium exempt from FICA tax? Yes
Insurance premium exempt from income tax? Yes
Taxpayer contribution to HSA (exempt from income tax) $3,000
Taxpayer contribution from a section 125 cafeteria plan? No
Federal tax rate 25.00%
State tax rate 4.00%
State tax deducted on federal return? Yes

In this example, the couple will save $840 by using the HSA plan.

Note: The medical costs applied to the annual deductible cannot exceed the annual deductible.

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