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 a high-deductible health plan or $3,400 for taxpayers without family coverage.

Question

Quizplus · Accepted Answer

B)In order to establish a Health Savings Account,the individual must be covered by a high-deductible health plan and not be covered under any other health plan that is not a high-deductible plan.

Which of the Following Statements Regarding Health Savings Accounts Is