[Solved] Which Is a Characteristic of a Flexible Spending Account (FSA)

Question 112
Multiple Choice
Question 112

Which is a characteristic of a flexible spending account (FSA)?

A) FSA allows you to put money aside on a pretax basis each year subject to annual maximums set by the IRS that must be used toward qualified medical and dental expenses typically within the calendar year.
B) FSA allows you to put money aside on an after-tax basis each year subject to annual maximums set by the IRS that must be used toward qualified medical and dental expenses typically within the calendar year.
C) The use of FSAs is limited to those with high-deductible health plans, and any money that remains in the account can continue to grow on a tax-deferred basis and used anytime to pay medical expenses on a tax-free basis.
D) The use of FSAs is limited to those with high-deductible health plans, and any money that remains in the account must be used toward qualified medical expenses typically within the calendar year.

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