Phil is age 67 and has just received a $20,000 taxable HSA distribution that he is using to supplement his retirementincome. What tax penalty, if any, applies to his HSA distribution for other than qualified medical expenses? A. $4,000 B.$3,000 C. $2,000 D. $0

The objective of the question is to determine the tax penalty that applies to Phil's Health Savings…

Answered: Phil is age 67 and has just received a…

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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Phil is age 67 and has just received a $20,000 taxable HSA distribution that he is using to supplement his retirement income. What tax penalty, if any, applies to his HSA distribution for other than qualified medical expenses? A. $4,000 B. $3,000 C. $2,000 D. $0