In: Finance
Lisa turned age 65 on May 29, 2019. During the year, she received distributions from her health savings account (HSA) totaling $1,227. She paid $618 on nutritional supplements and vitamins throughout the year. In March, she paid $112 to her podiatrist, and in July and August she paid $497 to her chiropractor. The penalty on Lisa's nonqualified distributions is __________. *
$22
$99
$124
$146
Mark for follow up
The penalty on nonqualified distribution vary upon one's distribution. Here, from the given information, Lisa's penalty is 20% of her nonqualified distribution. she has received a total amount of $1227 from her Health Savings Account in 29th May 2019, and before receiving the distribution, she paid $112 to her podiatrist. It will consider as nonqualified distribution. So for that, Lisa have to pay the penalty of 20% of the amount which she made. So the penalty amount on Lisa's nonqualified distribution is $22.
(112*20% =22.4, If we round this we will get $22.