Which one of the following statements about flexible spending accounts is false?
A. They may be used to cover only employees' (not dependents') health-care expenses.
B. They permit pretax employee contributions.
C. Contributions to the accounts may not exceed $5,000 per year and must be designated in advance.
D. Funds must be used by the plan's year end or they revert to the employer.
Answer: A. They may be used to cover only employees' (not dependents') health-care expenses.
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