Question

For Leo to be an eligible individual and qualify for an HSA, which of the following must be true?

a He cannot be claimed as a dependent on someone else’s return
b He must have an HDHP and cannot be enrolled in Medicare
c He cannot have any other health coverage
d All of the above

Answer 1

To qualify for an HSA, Option D: All of the above

Step-by-step explanation:

HSA stands for Health Savings Account. It is a tax-advantaged account. To be eligible and qualify for HSA following requirements must be met:

1. Individual must be covered under "High-deductible health plans" (HDHPs).

2. He should not have any other 'health coverage' except what is permissible by IRS.

3. He cannot claim himself as a dependent on the tax return of someone else.

4. Person should not be enrolled in Medicare, TRICARE etc.

Thus, Option D, which mentions that all the above statements A, B and C are correct would be the answer.