Which of the Following Statements Is False About Health Savings

question 100

Multiple Choice

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

• A)HSAs must be paired with qualifying high-deductible health insurance.
• B)Taxpayers qualifying for Medicare do not qualify to make HSA contributions.
• C)Distributions from HSAs which are not used for medical expenses are generally subject to a 20 percent penalty and income taxes.
• D)Distributions from HSAs which are used for qualifying medical expenses are not subject to tax or penalty.
• E)Deductible contributions to HSAs are unlimited.

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Definitions:

Commercial Paper

A type of unsecured, short-term debt instrument issued by corporations, typically used for the financing of payroll, accounts payable, and inventories.

Best Interest Rate

The most favorable interest rate available to a borrower based on their creditworthiness and market conditions.

Secured Loan

A loan backed by collateral, providing the lender with a form of security that can be claimed if the borrower fails to repay the loan.

Commercial Paper

Commercial paper is an unsecured, short-term debt instrument issued by a corporation, typically for financing payroll, accounts payable, and inventories.