Flexible spending accounts reduce taxes because contributions to these accounts are made with pretax dollars.

Name: Flexible spending accounts reduce taxes because contributions to these accounts are made with pretax dollars.
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

Contributions to flexible spending accounts are made with pretax dollars, which means they are not subject to income taxes, Social Security taxes, or Medicare taxes. This reduces the individual's taxable income and ultimately reduces their tax liability.

Flexible Spending Accounts Reduce Taxes Because Contributions to These Accounts