Question

Which of the following statements is a benefit of having a health savings account (HSA)?

1) An HSA is "portable," and will remain in place even if you change employers or leave the workforce.
2) Contributions to an HSA made by an employer are included in income.
3) After-tax contributions to an HSA are deducted from gross income if the taxpayer itemizes deductions.
4) Contributions to an HSA must be used by the end of the year, plus a short grace period, or they are lost.

Answer 1

A health savings account (HSA) is portable, contributions made by an employer are not included in income, and after-tax contributions can be deducted from gross income if the taxpayer itemizes deductions.

Step-by-step explanation:

A health savings account (HSA) is a benefit because it is portable, meaning it remains in place even if you change employers or leave the workforce. This allows you to continue contributing to the HSA and using it to pay for eligible medical expenses. It is also important to note that contributions to an HSA made by an employer are not included in income, providing a tax advantage. Additionally, after-tax contributions to an HSA can be deducted from gross income if the taxpayer itemizes deductions, further reducing taxable income.