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Jack Has to Decide Between Two Jobs That Provide Equal

Question 53

Multiple Choice

Jack has to decide between two jobs that provide equal pay.He decides to compare the health care benefits provided by both jobs to arrive at a decision.He wants to choose the job that offers him a flexible spending account over the job that offers him managed care.Which of the following statements best supports Jack's preference?


A) With managed care,the insurer makes decisions about health care,which helps avoid unnecessary procedures.
B) Money in flexible spending accounts is not taxed,so employees get more take-home pay.
C) The money in the flexible spending accounts must meet IRS requirements.
D) At the end of each year,money remaining in a flexible spending account reverts to the employer.
E) Contributions to a flexible spending account may not exceed $5,000 per year.

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