FREE HSA Contribution & Distribution Rules Questions and Answers

Question 1

What is the maximum annual contribution limit for an individual HSA in 2024?

Accepted Answer

$4,150

Answer

$3,500

Answer

$5,000

Answer

$6,500

Question 2

Who can make contributions to an individual's HSA?

Accepted Answer

Both the account holder and the employer

Answer

Only the account holder

Answer

Only the employer

Answer

Only family members

Question 3

When can HSA funds be withdrawn without penalty?

Accepted Answer

Anytime, if used for qualified medical expenses

Answer

Only after age 65

Answer

Only after retirement

Answer

Only during employment

Question 4

What is the penalty for using HSA funds for non-qualified expenses before age 65?

Accepted Answer

20% penalty and income tax

Answer

10% penalty and income tax

Answer

No penalty, just income tax

Answer

50% penalty

Question 5

What happens to HSA funds if the account holder dies?

Accepted Answer

A spouse can inherit the HSA tax-free, but a non-spouse must pay taxes on it.

Answer

The funds are forfeited.

Answer

The HSA remains tax-free for any beneficiary.

Answer

The funds must be used immediately for medical expenses.

Question 6

Can an individual contribute to an HSA after enrolling in Medicare?

Accepted Answer

No, HSA contributions must stop upon Medicare enrollment.

Answer

Yes, as long as they are employed.

Answer

Only if they delay Medicare Part B enrollment.

Answer

Yes, but only up to age 70.