Which term refers to individual employee accounts funded by the employer,the employee,or both based on rules specified in Section 125 of the Internal Revenue Code?
A) Core-plus option plan
B) Modular plan
C) Flexible spending account
D) Health savings account

Question

Quizplus · Accepted Answer

Section 125 of the Internal Revenue Code allows for the creation of flexible spending accounts (FSAs), which are individual employee accounts funded by the employer, the employee, or both, based on specified rules. FSAs allow employees to set aside pre-tax dollars to pay for qualified medical expenses or dependent care expenses.

Which Term Refers to Individual Employee Accounts Funded by the Employer,the