Which of the following statements regarding Health Savings Accounts is incorrect?
A)Taxpayers are allowed to deduct contributions to a health savings account for AGI.
B)All taxpayers are eligible to establish a health savings account.
C)Distributions from a health savings account are excluded from gross income if used to pay qualified medical expenses.
D)Health savings account contributions are limited to the lesser of 100% of annual deductible under high deductible health plan or $3,350 for taxpayers without family coverage.

Question

Quizplus · Accepted Answer

Not all taxpayers are eligible to establish a health savings account. To be eligible for an HSA, an individual must be covered under a high-deductible health plan (HDHP) and cannot be enrolled in Medicare or be claimed as a dependent on someone else's tax return.

Which of the Following Statements Regarding Health Savings Accounts Is