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Benefits Beginner:
Flexible Spending Accounts
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Choose wisely. There is only one correct answer to each question.
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1.
When you fund a flexible spending account, your employer takes those funds out of your pay _______.
Choose wisely. There is only one correct answer.
On an after-tax basis
On a before-tax basis
After taking out Social Security tax, but not income taxes
None of the above
On a before-tax basis. This means that FSA funds do not incur taxes as they are taken out.
2.
Flexible spending accounts are funded through _______.
Choose wisely. There is only one correct answer.
Payroll deduction
Employer contributions
Both payroll deductions and employer contributions
Neither payroll deductions nor employer contributions
Payroll deduction. Deductions are taken out of employee paychecks.
3.
If your employer allows you a grace period to use your flexible spending account funds, then you must use your funds by _______.
Choose wisely. There is only one correct answer.
December 31 of that year
January 1 of the following year
Two and a half months after the calendar year ends
Six months after the calendar year ends
Two-and-a-half months after the calendar year ends. This is a grace period allowed by the IRS.
4.
Dependent care FSA funds can be used for expenses including ________.
Choose wisely. There is only one correct answer.
Adult daycare for an elderly or disabled dependent
Overnight summer camp for a dependent child
Both A and B
Neither A nor B
Adult daycare for an elderly or disabled dependent. Overnight camp for a child, however, is not covered.
5.
You may be able to access your health flexible spending account funds with a _______.
Choose wisely. There is only one correct answer.
Debit card
Credit card
Stored value card
Any of the above
Any of the above. These are all options offered by many employers.
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