Which of the Following Statements Regarding Health Savings Accounts Is

question 82

Multiple Choice

Which of the following statements regarding Health Savings Accounts is incorrect?

• A)Taxpayers are allowed to deduct contributions to a health savings account for AGI.
• B)All taxpayers are eligible to establish a health savings account.
• C)Distributions from a health savings account are excluded from gross income if used to pay qualified medical expenses.
• D)Health savings account contributions are limited to the lesser of 100% of annual deductible under high deductible health plan or $3,350 for taxpayers without family coverage.

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Definitions:

Encoding

The process of converting information into a form that can be stored in memory or communicated to others.

Decoding

The process of interpreting and making sense of messages or information received.

Downward Communication

The process of information flow from higher managerial or organizational levels to lower levels, typically involving directives, instructions, and policy announcements.

Horizontal Communication

The exchange of information between peers within the same level of an organization or environment, facilitating coordination and collaboration.