Question

Frankie is deciding between two jobs that provide equal pay. He compares the health care benefits provided by both jobs to help him make a decision. One job offers a flexible spending account, while the other job offers him managed care. Which statement will help Frankie make a decision?

A) With managed care, the insurer makes all decisions about health care so Frankie has no control.

B) Money in flexible spending accounts is not taxed, so employees get more take-home pay.

C) The money in the flexible spending accounts must meet IRS requirements.

D) At the end of each year, money remaining in a flexible spending account reverts to the employer.

E) Contributions to a flexible spending account may not exceed $5,000 per year.

Answer

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