All of the Following Statements About the Tax Treatment of Health

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.