Point out the CORRECT statement about a flexible spending account (FSA).

	An FSA is a cafeteria plan consisting of various tax-free benefits funded through employee salary deductions.
	There is no maximum amount of salary reduction that can be elected to fund an FSA.
	An FSA is appropriate when there is a need for benefits that are difficult to provide on an individual basis.
	Employee salary reductions applied to nontaxable benefits under the plan are subject to income tax and FICA tax.