HSA fast facts

• Health savings accounts (HSAs) were created as part of the Medicare Prescription Drug, Improvement, and Modernization Act, or MMA, signed into law by President George W. Bush on December 8, 2003. The MMA was the largest overhaul to Medicare in the program's history.
• HSAs are only available as part of a high-deductible health plan (HDHP).
• As part of the 2020 CARES Act, over-the-counter medications and menstrual care products became eligible for purchase with an HSA.
• Contributions to an HSA can be made by an employer or employee on a pretax basis.
• Funds in a health savings account can be invested in a similar way as other retirement accounts.
• Funds can be withdrawn at any time for any reason, but funds withdrawn for non-approved medical expenses before the age of 65 are subject to income taxes and an additional penalty.

Common HSA providers