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:

Negligent

The failure to take reasonable care to avoid causing injury or loss to another person, resulting in legal liability for the resulting damages.

Reasonably Foreseeable

A legal standard referring to events or consequences that a person should anticipate as likely to happen under certain circumstances.

Generally Accepted Auditing Standards

Principles that provide a framework for auditors to conduct financial audits, ensuring accuracy, consistency, and verifiability.

Negligence

A failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.