Health Savings Accounts (HSAs)

Which of the following statements regarding a Health Savings Account (HSA) is correct?

1.  Contributions are made with after-tax dollars, but qualified distributions are tax-free.
2.  Contributions are deductible (or excluded from income if made through payroll), earnings grow tax-deferred, and qualified distributions are tax-free.
3.  Contributions are deductible, but earnings are taxable annually.
4.  Qualified distributions are taxable if used to pay Medicare premiums.