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Flexible Spending Accounts (FSAs)

This quiz is designed to assess your understanding of Flexible Spending Accounts (FSAs), a type of savings account that allows you to set aside pre-tax dollars to pay for eligible healthcare expenses.

15 Questions Published
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Questions

Question 1 Multiple Choice (Single Answer)

What is the primary purpose of a Flexible Spending Account (FSA)?

  1. To save money for retirement
  2. To pay for eligible healthcare expenses
  3. To invest in stocks and bonds
  4. To cover the cost of education
Question 2 Multiple Choice (Single Answer)

Who is eligible to contribute to an FSA?

  1. Only individuals with employer-sponsored health insurance
  2. Only individuals who are self-employed
  3. Both individuals with employer-sponsored health insurance and those who are self-employed
  4. None of the above
Question 3 Multiple Choice (Single Answer)

What is the maximum amount that can be contributed to an FSA in a calendar year?

  1. $2,750
  2. $5,000
  3. $7,500
  4. $10,000
Question 4 Multiple Choice (Single Answer)

What types of expenses are eligible for reimbursement from an FSA?

  1. Doctor visits
  2. Prescription drugs
  3. Dental care
  4. All of the above
Question 5 Multiple Choice (Single Answer)

What happens to unused FSA funds at the end of the calendar year?

  1. They are forfeited
  2. They are rolled over to the next calendar year
  3. They are donated to charity
  4. They are transferred to a health savings account (HSA)
Question 6 Multiple Choice (Single Answer)

What is the difference between an FSA and a health savings account (HSA)?

  1. FSAs are only available to individuals with employer-sponsored health insurance, while HSAs are available to both employed and self-employed individuals.
  2. HSAs have higher contribution limits than FSAs.
  3. FSAs allow for a grace period or limited carryover of unused funds, while HSAs do not.
  4. All of the above
Question 7 Multiple Choice (Single Answer)

Which of the following is not an eligible expense for FSA reimbursement?

  1. Gym memberships
  2. Over-the-counter medications
  3. Contact lenses
  4. Hearing aids
Question 8 Multiple Choice (Single Answer)

What is the deadline for submitting FSA claims?

  1. Within 60 days of the expense
  2. Within 90 days of the expense
  3. Within 120 days of the expense
  4. Within 180 days of the expense
Question 9 Multiple Choice (Single Answer)

Can FSA funds be used to pay for medical expenses incurred before the account was established?

  1. Yes
  2. No
Question 10 Multiple Choice (Single Answer)

What is the tax advantage of contributing to an FSA?

  1. Contributions are made with pre-tax dollars
  2. Withdrawals are tax-free
  3. Both of the above
  4. None of the above
Question 11 Multiple Choice (Single Answer)

Can FSA funds be used to pay for the cost of a new pair of eyeglasses?

  1. Yes
  2. No
Question 12 Multiple Choice (Single Answer)

What is the maximum amount that can be carried over from one calendar year to the next in an FSA?

  1. $500
  2. $1,000
  3. $1,500
  4. $2,000
Question 13 Multiple Choice (Single Answer)

Which of the following is not a qualified medical expense for FSA reimbursement?

  1. Dental implants
  2. Lasik eye surgery
  3. Cosmetic surgery
  4. Weight loss surgery
Question 14 Multiple Choice (Single Answer)

Can FSA funds be used to pay for the cost of a gym membership?

  1. Yes
  2. No
Question 15 Multiple Choice (Single Answer)

What is the penalty for withdrawing money from an FSA for non-qualified expenses?

  1. A 10% penalty
  2. A 20% penalty
  3. A 30% penalty
  4. A 40% penalty
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