Question

Tim rolls over $1,250 from his Archer Medical Savings Account (MSA) to a Health Savings Account (HSA). What amount of the distribution is subject to California income tax

Answer 1

complete question

1. Tim rolls over $1,250 from his Archer Medical Savings Account (MSA) to a Health Savings Account (HSA). What amount of the distribution is subject to California income tax?

a) $0

b) $125

c) $625

d) $1,250

Answer: the correct option is : a

Explanation:

for taxable year beginning after 31 December 2006,  one roll over is permitted from HSA to MSA. this single roll over or distribution is not subjected to California income tax  which results in the answer being $0