What is the name of the account where both employee and employer contributions can be utilized for uncovered medical expenses?

The correct answer is a Flexible Spending Account (FSA). An FSA is designed to allow both employees and employers to contribute funds that can be used for qualified medical expenses not covered by health insurance. This type of account provides tax advantages—contributions are made on a pre-tax basis, reducing the taxable income for the employee.

In an FSA, both the employer can make contributions, and employees can elect to have a portion of their salary set aside to cover healthcare costs. It's essential to understand that while both parties can contribute, FSAs are typically employer-sponsored accounts.

The funds in an FSA can be used for a variety of qualified medical expenses, including deductibles, co-payments, and certain over-the-counter items. However, it's important to note that FSA funds are generally "use it or lose it," meaning any unspent funds at the end of the plan year may be forfeited, though some plans may offer a grace period or allow a small carryover.

In contrast, other account types listed have different characteristics. For instance, a Health Savings Account (HSA) can only be funded by the individual (and can include employer contributions) but is typically paired with high-deductible health plans and allows unused funds