How it works
The yearly limit covers your contributions and your employer's together: $4,400 for self-only coverage and $8,750 for family coverage in 2026, plus $1,000 from age 55. Choosing the maximum means you put in whatever the limit leaves after your employer. Your contributions are made before tax, so each dollar saves your tax rate. Each year the balance grows at your expected return. If you pay medical bills from the HSA, they come out of the balance; if you pay them yourself and keep the receipts, the money stays invested and the receipts can be reimbursed from the HSA later, tax-free. In the example, maxing out a family HSA from 35 reaches $1,012,519 by 65 with $85,636 of receipts saved, against $813,546 when the same bills are paid from the account.