FSA Basic Quiz

Name*

First Last

1) Anyone with two percent or more ownership in a schedule S corporation, LLC, LLP, PC, sole proprietorship, or partnership may not participate in a FSA.*

True
False

2) The FSA must offer the selected benefits to all employees who meet the eligibility requirements. Employees can waive participation in all or part of the FSA.*

True
False

3) The Medical Reimbursement limit is set by the employer. However, the employer accepts a “risk obligation.” The employer is obligated to “front the money” to the employee and runs the risk of losing the funds if the employee terminates employment.*

True
False

4) When an employee terminates midyear, an employer deduct the Medical Reimbursement amount owed by the employee from the last paycheck.*

True
False

5) In most cases, is Medical Reimbursement a COBRA eligible benefit.*

True
Falso

6) Employees can be reimbursed for their cost of individual insurance premiums from the MRA.*

True
False

7) Employees contributing to an HSA fund can pre-tax premiums and dependent care in an FSA without restriction. However, elections and reimbursement for vision and dental expenses can only be done if the employer amends their Plan Documents to be “Limited Purpose.”*

True
False

8) If no employee contributes to the DCA, an owner can still participate in this account.*

True
False

9) Under the IRS rules, any money left at the end of the plan year is forfeited by the FSA participants.*

True
False

10) An employee can change their election any time during the plan year.*

True
False

11) Personal financial hardship is considered a status change by the IRS.*

True
False

12) An employee who has an HSA-qualified health plan, but doesn’t open an HSA account is eligible to participate in an FSA without limitation.*

True
False

13) An employer can offer the HSA, HRA, and FSA to their employees during the same plan year.*

True
False

FSA Basic Quiz

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