Health Reform: Impact on HSAs

 The passage of HR 3590 really should have little impact on HSAs, but here are two changes that you should be aware of:

1. It will exclude the tax free reimbursement for the costs for over-the-counter drugs not prescribed by a doctor effective January 1, 2011.
2. It will increase the tax on distributions that are not used for qualified medical expenses to 20% from 10%. This will be effective January 1, 2011.

Source: Eric Johnson, First Horizon Msaver