Question

Which of the following is a false statement about health savings accounts (HSAs)?a. HSAs are available to any taxpayer using a health plan purchased through the state or federal exchange under the Affordable Care Act.b. Distributions from HSAs which are not used to pay qualifying medical expenses are generally subject to a 20 percent penalty as well as income taxes.c. Taxpayers who contribute to an HSA must carry qualifying high-deductible health insurance.d. Taxpayers must contribute to the HSA by April 15 of the year following the tax year for which they want the deduction.e. Distributions from HSAs are not taxable when used to pay qualifying medical expenses.

Answer 1

Answer: HSAs are available to any taxpayer using a health plan purchased through the state or federal exchange under the Affordable Care Act

Explanation:

Health Savings Account simply works with a health plan which possess a high deductible. An individual can just save the money he or she has in their HSA account before the taxes will be deducted and the funds can be used to pay for expenses relating to health.

The statement about health savings accounts (HSAs) that is not true is that HSAs are available to any taxpayer using a health plan purchased through the state or federal exchange under the Affordable Care Act.