Question

Which of the following statements is false about health savings acounts

Answer 1

Given below are my opinions on the statements provided in the question:

a) HSA it includes only those tax taxpayers who are enrolled in a High Deductible Health Plan.

So, option (a) is incorrect answer.

(b)

The HSA is a method to avoid the 7.5% AGI limit of medical expense deductions.

Therefore, option (b) is incorrect answer.

(c)

HSA funds are currently used to pay medical charges or expenses that are qualified without federal tax liability or any other penalties.

Therefore option (c) is incorrect answer.

(e)

Any withdrawals from HSA other than those listed medical expenses are subject to 20% penalty and other income taxes.

Hence option (e) is incorrect answer.

Please feel free to clear your doubts in the comment section.