Question

Francisco's employer establishes Health Savings Accounts (HSA's) for its employees.The plan provides for his employer to pay $1,000 into Francisco's HSA,and Francisco to also contribute $1,000 to his HSA.During the year,the plan pays for $1,500 of Francisco's medical expenses not covered by the employer's regular medical insurance plan.
I.Francisco must include the $1,000 contribution by his employer in his adjusted gross income.
II.The $500 still in the account at the end of the year carries forward to the following year.

Accepted Answer

A)  Only statement I is correct.
B)  Only statement II is correct.
C)  Both statements are correct.
D)  Neither statement is correct.E) A) and B)
F) B) and C)

Exam 4: Income Exclusions

Correct Answer
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Exam 4: Income Exclusions

Correct AnswerverifiedShow Answer

Correct Answer
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