Reference no: EM132680739

Problem 1: Which of the following is true with regard to Health Savings Accounts?

Select one or more:

a. HSA's have a 20% penalty for withdrawal of funds for non-qualified purposes.

b. The taxpayer deducts contributions to an HSA FOR AGI.

c. Funds used in the HSA can be withdrawn for qualified medical expenses without being taxed.

d. If a taxpayer withdraws funds from the HSA and uses them for purposes other than qualified medical expenses he will have taxable income.

e. The taxpayer can invest the amounts in her HSA and is not taxed during the time the funds are in her HSA.

f. A taxpayer can deduct contributions to an HSA if he has any type of medical insurance from his employer

g. HSA's are portable, meaning that if you leave your current employment you can take the plan with you.

h. The taxpayer must "use it or lose it", meaning that she will lose the unused amount of any contributions she made to an HSA after the allowable period.