Question: I currently have an HSA plan. If I select a new policy in 2014 that is not an HSA plan, can I still use my the money in my HSA bank account for uncovered medical expenses with no penalty?
Answer: No. There is a tax penalty for using your HSA savings for anything but deductible medical expenses (including health insurance premiums). You are penalized in 2 ways: (1) you will pay income tax on whatever you withdraw and (2) you will pay an additional 15% penalty as well.