Robins employer sponsors a group health insurance plan and a health care flexible spending account (FSA). This year, Robin contributed $1,000 to the FSA. Her out of pocket co-payments and deductibles for medical and dental care were $950, and she spent $50 to purchase aspirin and over the counter cold remedies in preparation for the cold and flu season. Which of the following statements concerning Robins FSA is correct?

In order to receive a reimbursement from the FSA, the code requires Robin to incur the expenses and request a distribution by the end of this year.

Based on her expenses to date, Robins FSA will reimburse her $950 if she timely filed for reimbursement.

Based on her expenses to date, Robins FSA will reimburse her $1,000 if she timely filed for reimbursement.

The unused balance of Robins FSA may be carried forward and used for up to two additional tax years.