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Is anyone here familiar with Health Savings Accounts? I know you need to have a HSA high deductible insurance policy to open and contribute to an HSA account. But let's say you want to switch out of the HSA insurance policy to a regular insurance policy and you stop making deductions to the HSA.
My insurance agent says if I do that, I can't use the money in the HSA without a 10% penalty. In other words, she says I need to keep an HSA insurance policy in order to use the funds for medical purposes without getting the penalty.
I have never seen this in my readings about HSA's. Is she right? She is not an HSA expert, so I'm wondering how accurate her understanding is.
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