Question

A flexible spending account (FSA) is designed to:

a. Be a tax-sheltered savings that can be used to pay for medical expenses
b. Reimburse an employee for medical expense due to high deductibles
c. Be funded by the employee and is not subject to federal or state taxes
d. Allow the patient to spend health-care money whenever desired

Answer 1

A flexible spending account (FSA) is a tax-sheltered savings that can be used to pay for medical expenses option (a). It is funded by the employee and is not subject to federal or state taxes.

Step-by-step explanation:

A flexible spending account (FSA) is designed to be a tax-sheltered savings that can be used to pay for medical expenses option (a). It is funded by the employee and is not subject to federal or state taxes. FSAs can be used to cover costs such as doctor visits, prescription medications, and other eligible medical expenses. The funds in an FSA can be accessed whenever the employee needs to pay for healthcare expenses.