Which statement correctly describes a Health Savings Account (HSA)?

Question

Accepted Answer

Funds are contributed before tax, grow tax-deferred, and may be withdrawn tax-free for qualified medical expenses

Answer

Unused funds are forfeited at the end of the plan year

Answer

An HSA may be offered only by an employer and cannot be opened by an individual

Answer

Funds may be withdrawn for any purpose without penalty before age 65

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