Question

7) Mike starts a new job on July 1 and becomes covered under the employer's health insurance plan which has an annual deductible of $2,400. Mike contributes the maximum amount into a Health Savings Account (HSA). Which of the following statements regarding Mike's HSA is correct?

A) Mike can contribute and deduct $1,200 for AGI.

B) Mike contribution will be deductible if he itemizes, and the contribution along with her out-of-pocket medical expenses exceed 10% of AGI.

C) If Mike withdraws $500 to pay for X-rays, the $500 is taxable.

D) Interest income earned on the HCA is taxable.

Answer 1