Page 17 - CPS Benefits Guide
P. 17
How Much Can I Save by Using an HSA?
In this example, a person with an annual salary of $40,000 would bring
home $600 more in a year just by participating in an HSA instead of
paying the same medical care costs out of pocket with after-tax money.
That does not even include the fact that HSA money can be invested, like
a retirement account and grow over time!
This is an example for illustration purposes only. Your personal income
and tax savings will vary based on your income, tax rate, and the amount
of money you contribute to your HSA.
Pre-tax Savings Example Without Using HSA Using HSA
Gross Monthly Salary $3,333 $3,333
Pre-Tax Contributions
Medical Premiums (120) (120)
Your Contribution to HSA $0 ($200)
Resulting in Taxable Monthly Income $3,213 $3,013
Taxes at 25% Rate ($803) ($753)
Out of pocket medical expenses
($200) $0 (pulled from
HSA as needed)
Resulting in Monthly Take-Home Pay $2,210 $2,260
Annual Take-Home Salary $26,520 $27,120
Comprehensive Pharmacy Services 17
In this example, a person with an annual salary of $40,000 would bring
home $600 more in a year just by participating in an HSA instead of
paying the same medical care costs out of pocket with after-tax money.
That does not even include the fact that HSA money can be invested, like
a retirement account and grow over time!
This is an example for illustration purposes only. Your personal income
and tax savings will vary based on your income, tax rate, and the amount
of money you contribute to your HSA.
Pre-tax Savings Example Without Using HSA Using HSA
Gross Monthly Salary $3,333 $3,333
Pre-Tax Contributions
Medical Premiums (120) (120)
Your Contribution to HSA $0 ($200)
Resulting in Taxable Monthly Income $3,213 $3,013
Taxes at 25% Rate ($803) ($753)
Out of pocket medical expenses
($200) $0 (pulled from
HSA as needed)
Resulting in Monthly Take-Home Pay $2,210 $2,260
Annual Take-Home Salary $26,520 $27,120
Comprehensive Pharmacy Services 17
