Which of the Following Statements Is True About Flexible Spending

question 17

Multiple Choice

Which of the following statements is true about flexible spending accounts?

• A)They can only be used for dependent-care expenses.
• B)They restrict pretax employee contributions.
• C)They work best to the extent that employees have unpredictable expenses.
• D)Funds must be used by the plan's year end or they revert to the employer.
• E)They cause a reduction in take-home pay.

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