Which of the Following Statements Regarding Health Savings Accounts Is

question 55

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 a high-deductible health plan or $3,400 for taxpayers without family coverage.

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Definitions:

Physical Signs

Observable indicators that are often used to detect or monitor medical conditions through physical examination.

Angina

A condition marked by severe pain in the chest, often also spreading to the shoulders, arms, and neck, caused by an inadequate blood supply to the heart.

Crisis Situation

A critical or intense point in a situation that requires immediate attention and action to prevent or mitigate damage.

Denial

A psychological defense mechanism where a person refuses to accept reality or facts, acting as if a painful event, thought, or feeling did not exist.