wealthschema/archetypes/hc-01-hsa-maximizer-hdhp-household
HC-01Healthcare & BenefitsAccumulationmoderate tax complexity

HSA Maximizer / HDHP Household

Household on a high-deductible health plan, maxing HSA contributions, investing HSA for retirement healthcare, triple tax advantage strategy.

HC-01 is the triple-tax-advantage archetype: households on an HSA-qualified HDHP, maxing IRC §223 contributions, investing the HSA balance as a stealth retirement account, and coordinating against FSA timing rules and ACA OOP-max planning.

Age Range
35–55
Net Worth
$100k–$1M
Cohort
Healthcare & Benefits

About this archetype

HC-01 exists because the HSA testing surface is uniquely tight under IRC §223 and easy to get wrong in product code. Eligibility requires HDHP enrollment meeting both the minimum-deductible and maximum-OOP statutory thresholds (which update annually under Rev. Proc. releases), absence of other disqualifying coverage including a general-purpose FSA in either spouse's name, and no Medicare enrollment. Contribution limits ($4,150 self-only / $8,300 family for 2024; adjusted annually) plus the $1,000 catch-up at age 55 are per-individual-account, not per-household, so a spouse-pair with separate HSAs each get their own limit but only one family-coverage limit is shared. Last-month rule and testing-period exposure under §223(b)(8) create the December-enrollment edge case. On the back end, qualified medical expenses under §213(d) drive tax-free withdrawal, post-65 non-medical withdrawals are taxed as ordinary income (no penalty), and the §223 rules interact with the High-Deductible HSA-Compatible FSA carve-out (limited-purpose FSA) in a way most benefit-admin software gets wrong.

The structural story is a household optimizing for retirement-healthcare arbitrage. Median income is $163k with median net worth $692k; liquid net worth ($284k) reflects deliberate accumulation of HSA-investible balances rather than spend-down. The corpus skews toward dependent-carrying families (12 of 12 have dependents), which surfaces the family-HDHP versus self-only-HDHP-each-spouse decision — the latter sometimes optimizes for two catch-up contributions but blocks the family-coverage limit. EBRI's HSA database is the canonical reference for accumulated-balance distributions and the corpus is anchored to its upper-investing-tier behavior.

HC-01 differs from generic health-benefits corpora by the deliberate accumulation posture: receipts saved for future tax-free reimbursement, balances invested rather than swept to a checking sub-account, and FSA / DCFSA / commuter coordination handled at the household level. From HC-03 (benefits-gap) it differs by stable employer coverage; from HC-02 (disability claimant) it differs by full earner status and absence of Medicare/Medicaid coordination.

Defining characteristics

  • HDHP
    Enrollment in an HSA-qualified high-deductible health plan meeting the IRC §223(c)(2)(A) minimum-deductible and maximum-OOP thresholds for the plan year.
  • HSA max contribution
    Contributions at or near the §223(b) statutory limit (self-only or family) plus the §223(b)(3) age-55 catch-up; payroll-deducted contributions also escape FICA.
  • HSA investing
    Balances invested rather than swept, with the HSA treated as a stealth retirement account — qualified-medical withdrawals tax-free at any age, non-medical post-65 withdrawals taxed as ordinary income with no penalty.
  • Triple tax advantage
    Deductible contributions, tax-deferred growth, and tax-free qualified-medical withdrawals — the only account in the code with all three.
  • OOP-max planning
    Household reserves sized to absorb the HDHP's annual OOP maximum so the HSA can stay invested rather than tapped for current claims.
  • FSA coordination
    General-purpose FSA in either spouse's name disqualifies HSA contributions; limited-purpose FSA (dental/vision) is HSA-compatible under Notice 2004-50 — the §223 coordination decision benefits-admin software must handle.

Corpus signature

n = 12 households

Aggregated across the 12 HC-01 households in the shipped v3 corpus corpus. Numbers describe the corpus, not population claims.

Median income
$163k
p25–p75 $145k–$180k
Median net worth
$692k
mean $795k
Liquid net worth
$284k
median
Investable assets
$490k
median
Income distribution
$125k–140k
2
$140k–155k
3
$155k–175k
7
Net-worth distribution
$425k–825k
8
$825k–1.2m
2
$1.2m–1.6m
2
Goals across the corpus
Retirement12 / 12
Education funding12 / 12
Debt payoff10 / 12
Home purchase4 / 12
Liability composition
Credit cards12 / 12
Student loans10 / 12
Mortgages8 / 12
Auto loans6 / 12
  • 8 of 12 (67%) are homeowners; the remainder rent.
  • CA, MA, MD account for 9 of 12 households — 75% of the corpus.
  • Median adult-member age is 43 (range 33–54 across primaries and spouses).
  • Every household carries at least one dependent.

Representative household

HC-01-seed-12
Grace K.Single Parent·Virginia Beach-Norfolk-Newport News, VA

Grace is the single-parent HC-01 file — a healthcare-industry primary earner enrolled in an HDHP with a child as a tax dependent, which sets up the rarely-tested family-HSA-with-single-parent scenario. Her $298k liquid net worth includes an HSA balance she treats as long-term-invested; the diagnostic question for advisor software is whether the HSA is reported as 'liquid' (it isn't, post-mid-deductible) or 'investable retirement' (effectively yes, for an investing maximizer). Debt payoff is on track because her cash flow funds it; retirement and education-funding are off track because the HSA strategy is the retirement strategy and the 529 line is competing for the same dollars.

Gross income
$165,732
Net worth
$738,132
Liquid NW
$298,103
Age
42
Top goals on this household
Retirement
$2,922,600
Education funding
$262,500
Debt payoff
$8,493

Schema fields covered

Every HC-01 household ships with — at minimum — these JSON fields populated. The full schema is documented in the data set you purchase.

members[].age
income.combined_gross
net_worth.total
filing_status
accounts.taxable.lots[].acquisition_date
accounts.taxable.lots[].cost_basis
accounts.taxable.lots[].unrealized_pnl
taxes.wash_sale_flags

Who builds against this archetype

HSA-administration and benefits-admin platforms use HC-01 to test §223 eligibility verification, contribution-limit enforcement across employer and individual contributions, last-month-rule testing-period detection, and the limited-purpose-FSA versus general-purpose-FSA disqualification logic. Retirement-planning tools use HC-01 to model HSA-as-retirement strategies with the qualified-medical and post-65-non-medical withdrawal branches, including projections of accumulated medical expenses for tax-free reimbursement (the receipt-deferral strategy). Tax-software teams use it for Form 8889 generation, including spousal-coverage allocation under §223(b)(5) and the part-year coverage proration. Insurance and ACA-marketplace platforms use it to validate HDHP-versus-non-HDHP comparison engines that must surface the §223 implications.

Testing scenarios this corpus is calibrated for

  • 01§223 HSA eligibility verification — HDHP minimum-deductible / max-OOP thresholds, other-coverage disqualification, and Medicare-enrollment exclusion.
  • 02Contribution-limit enforcement across employer and individual contributions, including the §223(b)(3) age-55 catch-up and §223(b)(5) spousal allocation for family coverage.
  • 03Last-month rule and §223(b)(8) testing-period failure detection for December-enrolled HSA holders.
  • 04Limited-purpose-FSA versus general-purpose-FSA disqualification logic per Notice 2004-50.
  • 05Form 8889 generation with qualified-medical-expense substantiation and §223(f) prohibited-transaction detection.
  • 06HSA-as-retirement projection modeling — qualified-medical tax-free withdrawal versus post-65 non-medical ordinary-income withdrawal.

Edge cases and what's not in this corpus

HC-01 assumes stable employer-sponsored HDHP coverage; households in a benefits gap with disrupted HSA eligibility belong in HC-03. Households where the primary is on Medicare or disability and therefore HSA-ineligible belong in HC-02 or RL-01. Self-employed HDHP enrollees who pay HSA contributions through Schedule 1 (no payroll FICA escape) overlap with SB-02 — if §162(l) self-employed-health-insurance interaction is the testing surface, reach for SB-02. Households using FSA / DCFSA without an HDHP are out of scope — the corpus is specifically the §223-eligible HSA-investing posture. ACA marketplace enrollees taking APTC on a bronze HDHP are not pre-baked here; bronze-plan APTC reconciliation overlaps with HC-03 territory.

Calibration notes

Income and HSA-balance bands during v3 synthesis were anchored to EBRI HSA database tabulations (the upper-investing-tier behaviour) and BLS National Compensation Survey employer-contribution patterns for HDHP coverage. State concentration in CA / MA / MD reflects deliberate sampling toward jurisdictions where HSA contributions are not deductible for state-income-tax purposes (CA, NJ) versus those where they are — that asymmetry creates a tax-software testing surface unique to this archetype. Per CLAUDE.md §9 the corpus is FROZEN and not regenerable. Specific contribution-limit values reflect the statute as enacted, with annual indexing handled downstream rather than pre-baked into the household records.

How this differs from related archetypes

Frequently asked questions

What does the HC-01 archetype represent?+

HC-01 — HSA Maximizer / HDHP Household represents households on an HSA-qualified high-deductible health plan who contribute at or near the IRC §223 statutory limit and invest the HSA balance as a long-term retirement-healthcare account. It is the archetype for benefits-admin §223 eligibility logic, contribution-limit enforcement, and HSA-as-retirement projection modeling.

What income range does the HC-01 corpus cover?+

The 12 shipped HC-01 households have a combined gross income median of $163,236 (25th–75th: $145,155–$179,893). Median net worth is $691,536, with $284,247 in liquid net worth — a meaningful portion of which is in invested HSA balances rather than checking-style cash.

Does the corpus model the FSA-coordination disqualification?+

Yes. The corpus is built to surface the general-purpose-FSA disqualification (HSA-ineligible) versus limited-purpose-FSA carve-out (HSA-compatible) under Notice 2004-50 as a downstream benefits-admin test. Specific FSA elections are downstream attributes rather than pre-baked corpus fields.

How does HC-01 differ from HC-03 (COBRA / Benefits Gap)?+

HC-01 assumes stable employer-sponsored HDHP coverage and an active HSA-contribution posture. HC-03 is the benefits-gap household with COBRA, ACA-marketplace, or short-term coverage, where HSA eligibility is typically disrupted and contributions are paused.

Are the §223 last-month rule and testing period covered?+

The corpus supports modeling of December-enrolled HSA holders subject to the §223(b)(8) testing period; specific testing-period failure outcomes are downstream computations against the household coverage history rather than pre-baked attributes.

Is the HC-01 corpus regenerable?+

No. The shipped v3 corpus is frozen and not regenerable from current code (drift confirmed 2026-05-09). Improvements land in a future v4 release.

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