Angie starts a new job and becomes covered under the employer's health insurance plan which has an annual deductible of $2,400.Angie contributes the maximum amount into a Health Savings Account.Which of the following statements regarding Angie's Health Savings Account is correct?
A)Angie can contribute and deduct $1,200 for AGI.
B)Angie's contribution will be deductible if she itemizes,and the contribution along with her out-of-pocket medical expenses exceed 10% of AGI.
C)If Angie withdraws $500 to pay for X-rays,the $500 is taxable.
D)Interest income earned on the HCA is taxable.

Question

Quizplus · Accepted Answer

A)She was covered under the HDHP for 6 months so HCA contributions up to $1,200 are deductible,and they are deductible for AGI.

Angie Starts a New Job and Becomes Covered Under the Employer's