See how much you know about Health Savings Accounts (HSAs). Click Next to start the quiz. 1. Who is eligible to save in an HSA? Participants who are currently saving in a retirement plan Anyone Participants over age 55 Participants of a High Deductible Health Plan Hint 2. True or False. My entire HSA balance is deposited into my account on the first business day of the year. True False 3. True or False. An HSA is subject to the "use it or lose it" policy – if you don't spend the assets in it by year end (or, for some plans, by tax time), you lose the money. True False 4. Which of the following statements is accurate? Distributions from an HSA for qualified medical expenses: are taxed as ordinary income if you are under age 65. incur a 20% penalty if you are under age 65. are tax-free, regardless of your age. are taxed at a flat rate of 10%, regardless of your age. 5. Which of the following statements is accurate? Distributions from an HSA for NON-QUALIFIED medical expenses: are taxed as ordinary income, regardless of your age. incur a 20% penalty, if you are over age 65. are tax-free, regardless of your age. are taxed at a flat rate of 10%, regardless of your age. 6. True or False: HSAs can only be invested in cash. True False 7. Which of the following is NOT a qualified medical expense, eligible for HSA reimbursement? Prescription drugs Cosmetic surgery Orthopedic footwear Prescription sunglasses Physical therapy Hearing aid batteries Crutches, walkers, wheelchairs 8. What is the maximum you can withdraw from your HSA each year? Your out-of-pocket maximum for your plan 50% of medical expenses Your entire balance $2,000 per family member 9. If I leave my employer with an outstanding balance in my HSA: I will forfeit the remainder of my balance in the account. I can continue my HSA account as normal. I can roll the money into my new employer’s HSA, but only if the new employer has the same HSA provider. I will need to roll the money into an IRA within 60 days. 10. True or False: Saving in an HSA can really benefit future healthcare needs. True False Time is Up! Time's up
