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Michelle's employer offers a Flexible Spending Account (FSA) plan. Michelle can have up to $2,000 a year in pre-tax salary put in an FSA account

Michelle's employer offers a Flexible Spending Account (FSA) plan. Michelle can have up to $2,000 a year in pre-tax salary put in an FSA account to pay for qualified health care expenses (but not insurance premiums) for a $60 fee. Michelle and her wife Susan expect to have over $2000 in out of pocket medical expenses this year with the combined medical expenses of the couple, their two kids, and a new baby due next year. The couple pays an average tax rate of 15% last year. 1. Would you recommend they fund the FSA plan? Explain your answer. 2. What happens if they don't spend the money by the end of the year? Answer text Question 3 Rich text editor

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