1. mass transit
   lunch
2. education

With a flexible spending account, the employer pays for any fees associated with the accounts they open and oversee.

1. You forfeit any unused money at the end of the year.
   They are taxed at a slightly higher rate.
2. You can't use an FSA with an HMO.

Because any remaining money is forfeited at the end of the year, you must be careful not to place too much into it during the year.

1. They lower you taxable income.
   They reduce your medical insurance premiums.
2. They increase your take-home pay.

Since contributions to your FSA come out of your paycheck before income taxes, you are taxed on a lower gross amount.

1. 401(k)
   Roth IRA
2. Retirement Insurance Benefits (RIB)

Both were established in the 1970s. Employees gained new benefits, often using pre-tax contributions.

1. cosmetic procedures
   non-prescription drugs
2. eyeglasses

Any expense that can be shown to be a medical necessity is eligible for reimbursement.

1. marriage
   promotion
2. major surgery

If you experience a seriously life-changing event, such as the birth of a new child, you can usually alter your FSA contribution.

1. 1000
   5000
2. 10000

You may spend the entire $5,000 earlier in the year than you have finished contributing so long as you continue contributing throughout the year until you've contributed the full amount.

1. December 31st
   one month into the next year
2. 10 weeks into the next year

New rules allow you to actually use your FSA funds into the beginning of the following year. The period now ends in March.

1. infertility treatments
   liposuction
2. hair transplant

If your insurance does not already cover infertility treatments, you can use your FSA to cover the cost.

1. a housekeeper who also babysits
   babysitting fees for an older child who watches a younger child
2. day camp for one child that allows you to care for a different child

A Dependent Care FSA is designed to allow you to work by covering expenses related to caring for a child (or adult dependent).