How does the Affordable Care Act (ACA) affect my HSA?

The Affordable Care Act did make some changes to Health Savings Accounts – also called HSAs – and how they will work:

1. First, the law eliminated one’s ability to use money in their HSA account to buy over-the-counter drugs.
2. The second big change is that the law increased the penalty for withdrawing funds from your HSA before you reach age 65. The early withdrawal penalty increased from 10% to 20%.

HSA-compatible plans are available for purchase through public and private exchanges (private only available during the annual Open Enrollment period) such as the REALTORS® Insurance Marketplace.