Which is true of a health savings account but not a flexible spending account?
- you can use it to pay for prescription medicines
- you can use it to pay for over-the-counter medicines
- you must spend the money in it within a certain period of time
- you can get the account only if you have a health insurance plan with a high deductible
- you can use it to pay for prescription medicines
- you can use it to pay for over-the-counter medicines
- you can get the account only if you have a health insurance plan with a high deductible
The correct option is: you must spend the money in it within a certain period of time.
This statement applies to a flexible spending account (FSA), as any money left in the account at the end of the plan year is generally forfeited. Conversely, a health savings account (HSA) allows unused funds to roll over from year to year without expiration.