Choose wisely. There is only one correct answer to each question.
0%
Keep studying!
Review your answers below to learn more.
1.
Funds in your health savings account are not taxed when you die if your surviving spouse is named the beneficiary of the account.
True. Your spouse is the only person that can receive your HSA account and funds tax-free, but only if they are named the beneficiary of your account.
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.
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.
5.
Fees associated with HSA accounts may be paid tax-free with HSA funds.
True. HSA account fees may be paid tax-free with HSA funds or paid separately with other funds.