1. Which of the following statements is false about health savings acounts ("HSAs")? (Points : 2)

HSAs must be paired with qualifying high-deductible health insurance. Taxpayers qualifying for Medicare do not qualify to make HSA contributions. Distributions from HSAs which are not used for medical expenses are generally subject to a 20% penalty & income taxes. Distributions from HSAs which are used for qualifying medical expenses are not subject to tax or penalty. Contributions to HSAs are deductible as itemized medical deductions.

2.

Choose the incorrect answer. Money removed from a traditional IRA is taxable as ordinary income & subject to a 10% penalty, except for taxpayers who are: (Points : 2)

Paying the costs of higher education, including tuition, fees, books, plus room & board for a dependent child Withdrawing up to $20,000 of first-time home-buying expenses Using the withdrawals for medical expenses in excess of 10% of their AGI for persons younger than 65 years old Over 59 1/2 years old