Which of the Following Is a True Statement About Health

question 9

Multiple Choice

Which of the following is a true statement about health savings accounts (HSAs) ?

• A)Taxpayers who contribute to an HSA must carry health insurance,but it does not matter what kind.
• B)Contributions to HSAs are deductible as itemized deductions.
• C)Taxpayers covered by Medicare may not contribute to deductible HSAs.
• D)Distributions from HSAs which are not used to pay qualifying medical expenses are generally subjected to a 50 percent penalty as well as income taxes.
• E)Distributions from HSAs are taxable even when used to pay qualifying medical expenses.

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Definitions:

Lateral

Relating to, or situated at, the side; often used to denote movement or thinking that is not linear.

Informal Communication Network

A system of personal connections and channels within an organization where information is exchanged unofficially rather than through formal, organizational structures.

Unofficial

Information or activities not formally recognized, endorsed, or regulated by official entities.

Fast-Food Workers

Employees in the food service industry who specialize in preparing and serving food quickly at outlets known as fast-food restaurants.