Where should my next dollar go?
The HSA vs 401(k) Calculator.
Same money out of your paycheck, seven places to put it. Find out which one gets you there first, answered in years and months.
Step 1
About you
Step 2
Your plan
What will you spend the HSA on?
Employer Match?
Inputs and detailed math
Not advice. Educational illustration only. It is not personalised investment, tax, or financial advice.
Quick FAQ
Should I fund my HSA or my 401(k) first?
Capture the employer 401(k) match first, because that is free money no tax break can beat. After the match, the HSA is the strongest destination for the next dollar: it is the only account that avoids federal income tax, state income tax in most states, and Social Security and Medicare tax on the way in from a payroll contribution, then comes out tax-free when spent on medical costs.
Why does an HSA beat a 401(k) for the same contribution?
A 401(k) deferral is still subject to Social Security and Medicare tax, and an HSA payroll contribution is not. From the same gross pay, more dollars reach the HSA than reach the 401(k) before a single day of growth. Spent on medical costs the HSA is also tax-free coming out, where the 401(k) is taxed as income.
Do HSAs work in California and New Jersey?
Partly. California and New Jersey do not recognize HSAs for state income tax, so the contribution is taxed going in and the earnings are taxed each year. The federal deduction and the payroll tax saving are unaffected, which is why an HSA still comes out ahead in both states. This calculator prices that in when you select either one.
Is this HSA calculator financial advice?
No. The tool is educational, uses published IRS and state tax figures with a long-run real return assumption, and does not provide personalized investment, tax, legal, or financial advice.