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 $3,300 for taxpayers without family coverage.

Question

Quizplus · Accepted Answer

Not all taxpayers are eligible to establish a health savings account. To be eligible, a taxpayer must participate in a High Deductible Health Plan (HDHP) and cannot be covered by any other health insurance plan, including Medicare.

Which of the Following Statements Regarding Health Savings Accounts Is