Jose invested $6,000 in pre-tax income into this healthcare plan but lost the $780 left in it at the end of the year because he didn't use it.What type of plan was it?

Question

Quizplus · Accepted Answer

The fact that Jose lost the remaining balance at the end of the year suggests that he had a flexible spending account (FSA). FSAs require that the funds be used by the end of the year or else they are forfeited, unlike health savings accounts (HSAs) or health reimbursement arrangements (HRAs) where the funds can roll over or be used in future years.

Jose Invested $6,000 in Pre-Tax Income into This Healthcare Plan