10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The FCS exam has 75 questions and runs 3 hours.
These 10 free FCS questions are organized by exam domain, so you can see how each part of the Flexible Compensation Specialist blueprint is tested. Reveal the answer and explanation under each question.
January 2026 payroll has withheld $200 toward Morgan's $2,400 annual health FSA election. Coverage began January 1, and there have been no prior reimbursements. Morgan submits a fully substantiated $1,600 claim for eligible dental treatment received January 18. How should the administrator handle the claim?
Correct answer: A - Reimburse $1,600 now and continue the scheduled payroll deductions.
A calendar-year health FSA allows claims for 2026 expenses to be submitted through March 31, 2027, but has no grace period or carryover. An employee covered throughout 2026 submits an otherwise eligible dental claim on February 10, 2027. Treatment occurred December 18, 2026; she paid the dentist January 12, 2027. Documentation is complete and her unused 2026 benefit is sufficient. Which plan year should fund this reimbursement?
Correct answer: A - 2026; the service occurred during that year's coverage and the claim is timely.
During the summer, a married employee and spouse both work full time and need care for their eight-year-old dependent. Each proposed expense is documented, and sufficient dependent care FSA funds are available. Which expense meets the federal work-related care and provider rules?
Correct answer: B - Weekday soccer day camp enrollment fees.
An FSA debit card processes a $70 charge at a physician's office. The card administrator has independently verified that the employee's medical plan requires a $35 office-visit copayment. The employer uses the IRS copayment-matching substantiation method, and all other card-program requirements are met. What further documentation is required for this transaction?
Correct answer: B - No additional receipt is required; the copayment match substantiates the charge.
The final explanation of benefits for diagnostic imaging lists a $1,200 billed charge, a $400 contractual write-off, and a $500 insurance payment. The employer's HRA has already reimbursed $120 of the patient's remaining responsibility. The participant now requests health FSA reimbursement for the same service. The claim is otherwise eligible, sufficient FSA benefits remain, and there have been no other reimbursements. What is the largest additional amount the FSA may pay?
Correct answer: C - $180
On a credit-card receipt, a participant has handwritten 'fillings' to support a health FSA debit-card charge. The receipt otherwise shows only the dentist's name, transaction date, and total. No automatic substantiation method applies. What evidence would complete the substantiation?
Correct answer: D - An independent provider statement identifying the service, date provided, and amount.
A controller proposes funding each employee's HRA with a $1,200 employer credit plus optional pre-tax payroll deductions. The HRA would be integrated with the employer's group medical plan and otherwise comply with applicable requirements. Which change is needed to make the funding design permissible?
Correct answer: D - Remove employee contributions and fund the HRA solely through the employer.
An HRA credits $1,200 each January 1 to similarly situated active employees. A former employee has elected continuation of that HRA under COBRA, paid every premium on time, and remains entitled to COBRA coverage on January 1. Her previous HRA balance is zero. What happens to her reimbursement allowance on January 1?
Correct answer: A - She receives the full $1,200 credit on the same schedule as active employees.
Jordan, age 42, has self-only HSA-qualified medical coverage and separate dental insurance. Jordan's spouse has an HMO covering only the spouse and an active general-purpose health FSA that can reimburse either spouse's medical expenses before any deductible. No FSA claims have been submitted. Which coverage prevents Jordan from making HSA contributions?
Correct answer: C - The general-purpose health FSA, even without submitted claims.
Priya, age 68, is enrolled in Medicare and has stopped contributing to the HSA she established at age 52. She wants to use its existing balance for her current Medicare Part B and Medigap premiums. Neither premium has been reimbursed elsewhere. Which premiums qualify for tax-free HSA reimbursement?
Correct answer: D - Medicare Part B premiums only; Medigap premiums do not qualify.
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