Anna contributes pretax dollars to an account managed by her employer for her health care expenses.If she does not spend all of her money by the end of the year,she may forfeit it.What kind of plan does she have?

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An FSA (Flexible Spending Account) is a type of employer-sponsored benefit plan that allows employees to contribute pretax dollars towards eligible health expenses. The money must be used by the end of the plan year, or else it is forfeited. This is different from an HRA (Health Reimbursement Arrangement) or HSA (Health Savings Account), which allow unused funds to roll over to the next year or be carried forward. Medicare is a federal health insurance program for those age 65 and older, while a self-funded health plan is a type of plan where the employer assumes the financial risk for providing health care benefits to employees.

Anna Contributes Pretax Dollars to an Account Managed by Her