In which of the following can employers and employees deposit pretax wages to pay for non-catastrophic medical expenses?
A)health maintenance organizations
B)health benefits funds
C)health savings accounts
D)deferred savings plans

Question

Quizplus · Accepted Answer

C)The Medicare Modernization Act of 2003 allows employers to establish tax-free health savings accounts (HSA). After the employer, employee, or both deposit pretax (and thus tax sheltered)pay in the employees' HSAs, employees or their families can use their HSA funds to pay for "low dollar" (not catastrophic)medical expenses.

In Which of the Following Can Employers and Employees Deposit