SIE Exam Practice Question 893
Question: 893
Which of the following will result if a distribution is taken from a health savings account (HSA) by an individual under age 65, and the distribution is not used to pay for qualified medical expenses?
Correct Answer: B
Explanation:
Distributions from a health savings account (HSA) that are not used to pay for qualified medical expenses are subject to ordinary income tax and a 20% penalty. The penalty is waived if the individual is age 65 or older.
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