Question

Marilyn is eligible to receive Medicare. If she receives a $15,000 taxable HSA distribution this year, what tax penalty, if any, will apply

Answer 1

Answer: no tax penalty can be apply in this case.

Explanation:

Medicare is available for people age 65 or older .

If Marilyn is eligible to receive Medicare.

For a taxable HSA distribution, there is no tax penalty if a person aged more than 65 years receives a taxable HSA distribution.

So if Marilyn is eligible to receive Medicare, w assume that her age is more than 65.

Hence, no tax penalty can be apply in this case.