Angie Starts a New Job on July 1 and Becomes

question 2133

Multiple Choice

Angie starts a new job on July 1 and becomes covered under the employer's health insurance plan which has an annual deductible of $2,400. Angie contributes the maximum amount into a Health Savings Account. Which of the following statements regarding Angie's Health Savings Account is correct?

• A) Angie can contribute and deduct $1,200 for AGI.
• B) Angie's contribution will be deductible if she itemizes, and the contribution along with her out- of- pocket medical expenses exceed 7.5% of AGI.
• C) Interest income earned on the HCA is taxable.
• D) If Angie withdraws $500 to pay for X- rays, the $500 is taxable.

---

Definitions:

Stress

The condition in which the demands made on the person exceed the individual’s ability to cope with them.

Control Theory

A theory in sociology and criminology that posits that social and personal factors and the fear of consequences control whether people commit crimes.

Belief

An acceptance that something exists or is true, especially without proof, often based on personal conviction or trust.

Honesty

The quality of being truthful and free from deceit in principles, intentions, and actions.