Question: 17. An individual makes a contribution to an HSA based on the last month rule but fails to remain an eligible individual throughout the
17. An individual makes a contribution to an HSA based on the last month rule but fails to remain an eligible individual throughout the testing period. What is the consequence? Oa. The contribution will be forfeited and will revert to the HSA custodian. b. The HDHP plan will be canceled. O c. The individual will be prohibited from taking any tax-free distributions from the HSA. Od. The contribution will be subject to recapture and inclusion as taxable income to the individual.
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