Which sentence describes the correct use of flexible spending account (FSA) funds?

A.

Charlotte is planning to purchase soap and shampoo with her health FSA funds.

B.

Kelly is planning to use her dependent care FSA funds for care of her grandmother during the day. She lives with Kelly, and Kelly claims her as a dependent on her tax return.

C.

At the end of his plan year, Jose still has $1,000 in his health FSA, so he intends to carry this amount over and use it by the end of the following year.

D.

Knox plans to use dependent care FSA funds to pay for childcare during an evening out with friends.

E.

Vivica plans to contribute $5,000 to her health FSA in the coming plan year.

Question

Alannah Hughes

Mathematics

7 November, 22:59

Which sentence describes the correct use of flexible spending account (FSA) funds?

A.

Charlotte is planning to purchase soap and shampoo with her health FSA funds.

B.

Kelly is planning to use her dependent care FSA funds for care of her grandmother during the day. She lives with Kelly, and Kelly claims her as a dependent on her tax return.

C.

At the end of his plan year, Jose still has $1,000 in his health FSA, so he intends to carry this amount over and use it by the end of the following year.

D.

Knox plans to use dependent care FSA funds to pay for childcare during an evening out with friends.

E.

Vivica plans to contribute $5,000 to her health FSA in the coming plan year.

+3

Answers (2)

Know the Answer?

Jonathon Rich · Answer 1

I would say C or E.

Step-by-step explanation:

This is the definition of FSA.

A flexible spending account (FSA) is a type of savings account that provides the account holder with specific tax advantages. An FSA, sometimes called a "flexible spending arrangement," is set up by an employer for an employee. The account allows you to contribute a portion of your regular earnings to pay for qualified expenses related to medical and dental costs.

Jay Atkinson · Answer 2

The answer would be C