Which of the Following Statements Is True About Health Savings

question 74

Multiple Choice

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

• A)There is no restriction on the kind of health insurance taxpayers must carry in order to qualify for an HSA.
• B)Contributions to HSAs are not deductible for adjusted gross income (AGI), but are treated as an itemized deduction.
• C)Individuals taking distributions from HSAs which are not for medical expenses are subject to a 50 percent penalty.
• D)Distributions from HSAs are tax and penalty free when used for qualified medical expenses.
• E)Taxpayers may take tax and penalty free distributions from HSAs to purchase automobiles after age 65.

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