Jose invested $2,000 in pre-tax income into this healthcare plan but lost the $780 unspent balance remaining at the end of the year.What type of plan was it?

Question

Quizplus · Accepted Answer

A flexible spending account (FSA) is a type of employer-sponsored healthcare plan that allows employees to contribute pre-tax income to pay for eligible healthcare expenses. The balance of an FSA does not roll over at the end of the year, which means any unspent funds are forfeited. This is likely why Jose lost his remaining balance of $780. Health savings accounts (HSAs) and health reimbursement arrangements (HRAs) are two other types of employer-sponsored healthcare plans, but they have different rules and requirements. A fee-for-service plan is a type of insurance plan where the insurer pays for each service rendered to the patient.

Jose Invested $2,000 in Pre-Tax Income into This Healthcare Plan