Flexible spending accounts allow employees to set aside before-tax dollars for medical and dependent care expenses.

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This statement is true. Flexible spending accounts (FSAs) are a type of tax-advantaged benefit offered by employers that allow employees to set aside a portion of their pre-tax salary to pay for qualified medical and dependent care expenses. This can help individuals save money on out-of-pocket expenses and reduce their taxable income.

Flexible Spending Accounts Allow Employees to Set Aside Before-Tax Dollars