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

The IRS sets annual contribution limits for HSAs. For 2024, the limit for an individual is $4,150.

Question 2

Who can make contributions to an individual's HSA?

Accepted Answer

Both the account holder and the employer

Answer

Contributions to an HSA can be made by the account holder, their employer, or any other individual on their behalf.

Question 3

When can HSA funds be withdrawn without penalty?

Accepted Answer

Anytime, if used for qualified medical expenses

Answer

HSA funds can be withdrawn tax-free for qualified medical expenses at any time, but using them for non-qualified expenses before age 65 incurs a penalty.

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

If HSA funds are used for non-qualified expenses before age 65, they are subject to income tax and an additional 20% 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

If an HSA is inherited by a spouse, it remains an HSA. If inherited by a non-spouse, it becomes taxable income to the beneficiary.

HSA - Health Savings Account Certification Practice Test

HSA - Health Savings Account Certification Practice Test

Free HSA Contribution & Distribution Rules Questions and Answers