A flexible spending account (FSA) is
A)a vehicle that allows employee-paid expenses for medical or dependent care to be paid with pretax dollars.
B)available through all employers.
C)funded by an employer.
D)taxable income received by the employee if not used by the end of the year.

Question

Quizplus · Accepted Answer

A flexible spending account (FSA) is a program offered by many employers that allows employees to set aside a portion of their pre-tax earnings to pay for qualified expenses such as medical, dental, or dependent care expenses. This means that employees can save money on their taxes while still being able to pay for necessary expenses. It is not available through all employers and is typically funded by the employee, not the employer. Any funds that are not used by the end of the year may be forfeited.

A Flexible Spending Account (FSA) Is