Flexible Spending Accounts (FSA) Quiz

What is an FSA?

• A health care fund used to set aside pre-tax dollars for out-of-pocket health care expenses

• A retirement savings account

• A type of health insurance plan

• A loan for medical expenses

Which type of health plan can an FSA be used with?

• Only high deductible health plans (HDHP)

• Only health maintenance organizations (HMO)

• Only preferred provider organizations (PPO)

• Most any type of health plan (HMO, PPO, etc.)

How are contributions to an FSA taken from your paycheck?

• Only after state taxes are deducted

• Only after federal taxes are deducted

• Before federal, state, and social security taxes are deducted

• After federal, state, and social security taxes are deducted

When is the full amount of your FSA contribution available?

• On the first day that your FSA becomes active for the plan year

• After six months of contributions

• At the end of the plan year

• After the first contribution is made

How can you be reimbursed for a health care expense from your FSA?

• By sending a copy of the receipt to your FSA provider

• By calling your FSA provider

• By visiting your FSA provider's office

• By submitting a claim through your health insurance

What is an FSA debit card used for?

• Withdrawing cash from your FSA account

• Paying for eligible expenses directly at the point of purchase

• Paying for non-medical expenses

• Paying for any expenses

What does a dependent care FSA cover?

• Medical expenses for dependents

• Educational expenses for dependents

• Daycare expenses for dependents up to age 13, elderly dependents, and physically or mentally challenged dependents

• Travel expenses for dependents

Who can qualify for a dependent care FSA?

• Only those without a spouse

• Only the custodial guardian if separated or divorced

• Only those who are unemployed

• Anyone with dependents

What is a limited FSA used for?

• Managing medical expenses tax-free

• Managing travel expenses tax-free

• Managing educational expenses tax-free

• Managing dental and vision expenses tax-free for those enrolled in an HSA

What is the main benefit of using an FSA?

• It provides a loan for medical expenses

• It offers a higher interest rate on savings

• It decreases your taxable income and increases your total spendable income

• It increases your taxable income