CARD Q075
Which arrangement must be funded only by the employer and cannot accept employee contributions?
- Dependent-care flexible spending account
- Health flexible spending arrangement (FSA)
- Health savings account (HSA)
- Health reimbursement arrangement (HRA)
Health reimbursement arrangement (HRA)
A health reimbursement arrangement is employer-funded. It differs from an HSA, to which an eligible individual and others may contribute.
Why each choice is right or wrong
A. Dependent-care flexible spending account
Incorrect. A dependent-care FSA is not the employer-only HRA described.
B. Health flexible spending arrangement (FSA)
Incorrect. A health FSA can include employee salary-reduction contributions.
C. Health savings account (HSA)
Incorrect. An eligible person and others can contribute to an HSA.
D. Health reimbursement arrangement (HRA)
Correct. A health reimbursement arrangement is employer-funded. It differs from an HSA, to which an eligible individual and others may contribute.
Review the related terms
Use these lessons to revisit the concepts and try additional practice questions.