Which of the Following Is True of Flexible Spending Accounts

Which of the following is true of flexible spending accounts?

A) They may be used to cover only employees' and not dependents' health-care expenses.
B) They do not permit pretax employee contributions.
C) Contributions to the accounts may exceed $5,000 per year but must be designated in advance.
D) Funds must be used by the plan's year end or they revert to the employer.
E) The money in the flexible spending account is taxed and it reduces an employee's take home pay.