All of the Following Are True Regarding Health Savings Accounts

question 30

Multiple Choice

All of the following are true regarding Health Savings Accounts except

• A)they allow individuals to pay for current health care expenses on a tax-free basis.
• B)they allow individuals to save for future health care expenses on a tax-free basis.
• C)balances in HSAs earn interest before they are spent.
• D)unspent HSA funds are lost as the end of the year.

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Definitions:

Consolidated Income Tax Return

A singular income tax return filed by an affiliated group of corporations that combines their tax liabilities into one return, possibly resulting in tax benefits.

Advantages

Benefits or desirables attributes that contribute to the superiority of a product, service, or entity.

Ownership Structure

The arrangement or framework that details the distribution of ownership and the specifics of shareholders' rights in a corporation.

Deferred Income Tax Asset

An accounting term that refers to a situation where a business has paid more taxes to the government than it currently owes due to differences in accounting practices.