Which of the Following Statements Regarding Health Savings Accounts Is

question 34

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 $3,300 for taxpayers without family coverage.

---

Definitions:

Hydrogen Ions

Hydrogen ions, denoted H+, are positively charged atoms of hydrogen that have lost their only electron, playing a critical role in acid-base chemistry and pH balance in solutions.

Bicarbonate Ions

Anion compounds (HCO3-) that act as a buffer to maintain the pH balance in blood and other fluids in the body.

Alkaline

Referring to a basic, as opposed to acidic, substance with a pH greater than 7, often characterized by the presence of hydroxide ions (OH-).

Albumin

Albumin is a protein found in blood plasma that helps in maintaining osmotic pressure and transporting substances throughout the body.