A useful extra benefit that some employers offer their employees is a flexible spending account (FSA). While these are fairly straightforward, there are a few key rules that you must follow so that they don't backfire on you. Take this quiz to see if you understand all the intricacies of FSAs.
Other than for health costs, for what other type of expenses do some employers set up flexible spending accounts?
What is the drawback to using a flexible spending account (FSA)?
You forfeit any unused money at the end of the year.
They are taxed at a slightly higher rate.
You can't use an FSA with an HMO.
What benefit do flexible spending accounts offer employees, beyond simply covering medical expenses?
They lower you taxable income.
They reduce your medical insurance premiums.
They increase your take-home pay.
What retirement benefit was established around the same time as was the flexible spending account?
Retirement Insurance Benefits (RIB)
What type of medical expense is ineligible for reimbursement from a flexible spending account?
Under what circumstances might you be able to change your FSA contributions not during a standard open enrollment period?
What is the current limit for a Health Care or Dependent Care FSA in the United States?
When must you use all of your FSA funds by before they are forfeited?
one month into the next year
10 weeks into the next year
Which of these expenses is covered by a Health Care FSA?
What is an example of an expense that would be covered by a Dependent Care FSA?
a housekeeper who also babysits
babysitting fees for an older child who watches a younger child
day camp for one child that allows you to care for a different child