Free HSA Fundamentals & Regulations Questions and Answers

Question 1

Who is eligible to open a Health Savings Account (HSA)?

Accepted Answer

Individuals enrolled in a High-Deductible Health Plan (HDHP).

Answer

To open an HSA, an individual must be enrolled in a high-deductible health plan (HDHP) and not be covered by any other non-HDHP insurance.

Question 2

What is the primary advantage of contributing to an HSA?

Accepted Answer

Contributions, earnings, and withdrawals for medical expenses are tax-free.

Answer

HSAs offer triple tax benefits: contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free.

Question 3

What happens to unused HSA funds at the end of the year?

Accepted Answer

They roll over to the next year and continue growing tax-free.

Answer

Unlike Flexible Spending Accounts (FSAs), HSA funds roll over indefinitely, allowing account holders to save for future medical expenses.

Question 4

Which of the following expenses is NOT eligible for HSA reimbursement?

Accepted Answer

Over-the-counter dietary supplements.

Answer

Qualified HSA expenses include medical, dental, and vision costs. However, over-the-counter supplements and cosmetic procedures are not eligible.

Question 5

What happens if HSA funds are used for non-qualified expenses before age 65?

Accepted Answer

They are subject to a 20% penalty and income tax.

Answer

Non-qualified withdrawals before age 65 are subject to income tax and an additional 20% penalty.

HSA - Health Savings Account Certification Practice Test

HSA - Health Savings Account Certification Practice Test

Free HSA Fundamentals & Regulations Questions and Answers