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1.
When estimating how much to contribute to a medical flexible spending account, consider _______.
Choose wisely. There is only one correct answer.
Both A and B. Both of these options will give you an idea of how much you will need to set aside.
2.
When you fund a flexible spending account, your employer takes those funds out of your pay _______.
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On a before-tax basis. This means that FSA funds do not incur taxes as they are taken out.
3.
When you fund either a medical or dependent care flexible spending account, you can carry funds over from one year to the next with no limit.
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False. IRS rules do not allow this beyond a certain limit, which often rises year to year.
4.
A health FSA can be used to cover over-the-counter medication costs.
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True.
5.
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.
Two-and-a-half months after the calendar year ends. This is a grace period allowed by the IRS.