Which is true of a flexible spending account but not a health savings account? (1 point)
If you change jobs, you
• keep the account and all the money in it.
You can use it to pay for doctor visits.
You can get one only if o you have a health insurance plan with a high deductible.
If you don't spend it within a certain period
• of time, part or all of it reverts to your employer.
If you change jobs, you can keep the account and all the money in it.
Which is true of a flexible spending account but not a health savings account? (1 point)
If you change jobs, you keep the account and all the money in it.
You can use it to pay for doctor visits.
You can get one only if o you have a health insurance plan with a high deductible.
If you don't spend it within a certain period of time, part or all of it reverts to your employer.
If you don't spend it within a certain period of time, part or all of it reverts to your employer.
The statement that is true of a flexible spending account but not a health savings account is:
"If you change jobs, you keep the account and all the money in it."
The statement that is true of a flexible spending account (FSA) but not a health savings account (HSA) is, "If you change jobs, you keep the account and all the money in it."
To understand the difference between an FSA and an HSA and determine the correct answer, let's break it down:
1. Flexible Spending Account (FSA): An FSA is an employer-sponsored benefit that allows employees to set aside pre-tax dollars to cover eligible medical expenses not covered by insurance. Here are some key characteristics of an FSA:
- Funds are contributed pre-tax, reducing taxable income.
- You can use the funds to pay for various healthcare expenses, including doctor visits, co-pays, prescriptions, and medical supplies.
- The funds contributed to an FSA are "use it or lose it." If you don't spend the funds within a certain period (typically the calendar year), any unused balance reverts back to your employer.
2. Health Savings Account (HSA): An HSA is a tax-advantaged account available to individuals with a high deductible health insurance plan. Here are some key characteristics of an HSA:
- Contributions to an HSA can be made on a pre-tax or tax-deductible basis.
- The funds can be used to pay for qualified medical expenses, including doctor visits, prescriptions, and medical supplies.
- Unlike an FSA, the funds in an HSA can roll over from year to year. You don't lose the money if you don't spend it within a certain period.
- If you change jobs, you can take your HSA with you. It is fully portable and remains your account even if you switch employers.
Based on this information, the statement that is true of an FSA but not an HSA is, "If you change jobs, you keep the account and all the money in it." In the case of an HSA, you can also keep the account and the funds if you change jobs, as it is fully portable.