When an employee of the ABC Company elects salary reduction for a flexible spending account (FSA), which of the following statements is correct? Under the FSA, dependent care benefits can be provided for up to two children. The FSA is typically funded by employee and employer contributions The salary reduction is subject to Social Security taxes, but not income taxes. If the employee does not use all of the health care salary reduction, the balance is forfeited. QUESTION 66 If the cost of the first $50,000 of employer-provided group term life insurance is to be excluded from the gross income of all participating employees. which one of the following conditions must the plan meet? The plan must provide a death benefit that is included in the gross income of the employee's designated beneficiary. The government's Table I rates must be used to calculate all premiums for the group insurance provided. The plan must not discriminate in favor of key employees as to eligibility or benefits The employee must be permitted to select the amount of his or her coverage