Matilda works for a company with 1,000 employees. The company has a hospitalization insurance plan...
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Accounting
Matilda works for a company with 1,000 employees. The company has a hospitalization insurance plan that covers all employees. However, the employee must pay the first $3,000 of their medical expenses each year. Each year, the employer contributes $1,500 to each employee's health savings account (HSA). Matilda's employer made the contributions in 2020 and 2021, and the account earned $100 interest in 2021. At the end of 2021, Matilda withdrew $3,100 from the account to pay the deductible portion of her medical expenses for the year and other medical expenses not covered by the hospitalization insurance policy. As a result, Matilda must include in her 2021 gross income:
a.$1,600.
b.$3,100.
c.$100.
d.$0.
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