Question 35 of 40.

Vida, age 30, has an high-deductible health plan (HDHP) at her work. She is single, and contributes $2,500 each year to her HSA plan. She rarely uses the funds so has built up a balance. Vida is now looking at buying a house; if she took $10,000 from the HSA for a down payment, what would the tax outcome be?

If she withdraws $10,000, Vida would have to count that as taxable income and pay a 10% penalty ($1,000) for an early withdrawal.

She can withdraw contributions without any tax impact. After all, it is her money so she can use it if she needs to.

If she withdraws $10,000, Vida would have to count that as taxable income and pay a 20% penalty ($2,000) for a nonqualified distribution.

If she withdraws $10,000, Vida would have to pay a 20% penalty ($2,000) for a nonqualified distribution. There is no other tax impact.

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Question 36 of 40.

Which of the following individuals may qualify for a health savings account (HSA)?

Carla has health insurance through the Marketplace. Her deductible is $600.

Tom is covered by Medicaid.

Paul and Mary are covered by a plan through Paul's work. Their deductible is $2,700.

Ruth and Jim are covered by Medicare and a supplemental insurance policy.

Question 37 of 40.

In the case study from Chapter 8, how much is Michelle's self-employment tax?

$67

$133

$500

$858

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Question 38 of 40.

In the case study from Chapter 8, what is the tax rate Raphael paid on his qualified dividends?

0%.

12%.

15%.

20%.