Paula participates in an employer sponsored high deductible health insurance plan.When the employer switched to a high deductible plan, a health savings account(HSA) was established for each employee, and the company contributed the policydeductible to the HSA. Which of the following statements concerning this situation iscorrect?If Paula does not use the funds in the HSA by the end of the year, she willforfeit the balance to her employer.Paula will receive an above-the-line income tax deduction for contributions shemakes to the HSA (up to a specified maximum).Employer contributions to the HSA up to the plan limit will be included inPaula's income.If Paula leaves her current job and accepts a position with an employer thatdoes not sponsor a high deductible health insurance plan, she will forfeit thebalance in the HSA.

High Deductible Health Insurance plan : As the name suggests, it provides higher deduction amount…

Paula participates in an employer sponsored high deductible health insurance plan. When the employer switched to a high deductible plan, a health savings account (HSA) was established for each employee, and the company contributed the policy deductible to the HSA. Which of the following statements concerning this situation is correct?

Paula participates in an employer sponsored high deductible health insurance plan. When the employer switched to a high deductible plan, a health savings account (HSA) was established for each employee, and the company contributed the policy deductible to the HSA. Which of the following statements concerning this situation is correct?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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