Which statement correctly describes a Flexible Spending Account (FSA)?

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Flexible Spending Accounts are employer-established benefits that let you set aside pre-tax dollars to pay for eligible medical expenses. They’re typically provided by an employer, and contributions come mainly from the employee through payroll deductions (though some plans may include employer contributions). You do not need a high-deductible health plan to participate in an FSA. This is why that description fits best: it captures that FSAs are employer-provided and not tied to a high-deductible requirement. It’s worth noting that FSAs are generally not portable to a new employer, and funds may be forfeited if not used within the plan’s rules, though some plans offer a small carryover or grace period.