Author Question: All of the following statements about the tax treatment of Health Savings Accounts (HSAs) are true ... (Read 59 times)

soccerdreamer_17 · **on:** Jul 11, 2018

All of the following statements about the tax treatment of Health Savings Accounts (HSAs) are true EXCEPT

A) Contributions to a qualified HSA are tax deductible.
B) Distributions from a qualified HSA used to fund medical expenses are taxable income.
C) Investment income in a qualified HSA accumulates income tax free.
D) Distributions from a qualified HSA prior to age 65 for nonmedical purposes are subject to a 10 percent penalty tax.

Question 2

The Affordable Care Act requires all new medical expense plans to provide a comprehensive set of coverages and services. This comprehensive set of coverages and services that must be provided are called

A) essential health benefits.
B) dread disease benefits.
C) long-term care benefits.
D) respite care benefits.