What Differentiates Flexible Spending Accounts (FSAs) and Health Savings Accounts

question 56

Multiple Choice

What differentiates Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs) ?

• A) HSAs expire on an annual basis but FSAs continue perpetually.
• B) FSAs expire annually but HSAs may be reserved for use late in life.
• C) Amounts contributed to FSAs may not be rolled over from one year to the next.
• D) Only HSAs may be deducted from employee on a pre-tax basis.

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Definitions:

Harm

Physical injury, damage, or negative impact caused to a person, property, or other entity.

Use

Refers to the manner or purpose for which something is put into action or service.

Consumption

The use of goods and services by households or individuals.

Unreasonably Dangerous Product

In product liability, a product that is defective to the point of threatening a consumer’s health and safety. A product will be considered unreasonably dangerous if it is dangerous beyond the expectation of the ordinary consumer or if a less dangerous alternative was economically feasible for the manufacturer, but the manufacturer failed to produce it.