Which Is a Characteristic of a Flexible Spending Account (FSA)

question 54

Multiple Choice

Which is a characteristic of a flexible spending account (FSA) ?

• A) FSA allows you to put money aside on a pretax basis each year subject to annual maximums set by the IRS that must be used toward qualified medical and dental expenses typically within the calendar year.
• B) FSA allows you to put money aside on an after-tax basis each year subject to annual maximums set by the IRS that must be used toward qualified medical and dental expenses typically within the calendar year.
• C) The use of FSAs is limited to those with high-deductible health plans, and any money that remains in the account can continue to grow on a tax-deferred basis and used anytime to pay medical expenses on a tax-free basis.
• D) The use of FSAs is limited to those with high-deductible health plans, and any money that remains in the account must be used toward qualified medical expenses typically within the calendar year.

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