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1.
When a health savings account holder dies, the account funds become taxable as income on the individual's final tax return and taxable to the beneficiary of the account unless the designated beneficiary is _______.
A surviving spouse. Only a surviving spouse, if designated the beneficiary of your account, can receive the HSA account and funds tax-free.
2.
If you deposit $500 into your health savings account, what amount of qualified medical expenses may be reimbursed or paid tax-free from the account?
$500, if the expenses were incurred after the date the health savings account was established. You cannot reimburse expenses that exceed the amount of funds in your HSA account. In addition, only those expenses that were incurred after your HSA account was established may be reimbursed tax-free.
3.
An individual may establish more than one health savings account in their own name.
True. There is no limit on the number of HSA accounts you can have. However, total contributions to all your HSA accounts cannot exceed the contribution limit for the year.
4.
It is important to pay attention to the "fine print" when choosing a health savings account custodian or trustee because they can set administrative fees and other requirements for health savings accounts, including _______.
All of the above. Banks and credit unions are allowed to determine all of these features of your HSA account.
5.
Health savings accounts may be established at or with _______.
All of the above. All of these organizations are authorized to open HSA accounts.