Saving Money With Tax Free Medical Plans

Saving Money With Tax Free Medical Plans



Saving Money With Tax Free Medical Plans
Do you​ have medical expenses that you​ incur every single year? Do you​ always use up your entire medical insurance deductible on​ copays?
If so,​ there are a​ couple of​ medical saving plan available that would allow you​ to​ use taxfree money to​ pay for your medical expenses .​

That is​ an​ automatic 28%+ savings! you​ see every time you​ pay the​ copay using your checkbook,​ credit card,​ or​ debit card you​ are paying with money that has already taxed by the​ federal,​ state,​ and​ local governments.
The first medical savings plans that allows you​ to​ pay for your copays with tax free money is​ called a​ Flexible Spending Account,​ or​ sometimes just called a​ Flex Account .​

How does a​ Flex Account work? Simple .​

You simply inform your employer that you​ wish to​ set a​ portion of​ your paycheck aside for medical expenses .​

To do this you​ will need to​ visit your Human Resources department and​ fill out the​ appropriate form .​

And then each pay period,​ the​ designated amount of​ money is​ withheld from your check,​ tax free,​ and​ deposited in​ a​ savings account for you​ to​ use for your next doctor’s visit .​

And the​ best part,​ since you​ are withholding the​ money tax free,​ you​ will pay less in​ taxes at​ ​ the​ end of​ the​ year .​

It’s a​ winwin.
The second medical savings plan is​ called a​ HSA or​ Health Savings Account .​

Due to​ the​ rising cost of​ medical expenses,​ our government has come up with what is​ known as​ a​ highdeductible savings plan for medical expenses .​

How it​ works is​ this,​ you​ can set aside money,​ tax free,​ into an​ account that you​ own .​

What this means is​ that if​ ​ you​ decide to​ change jobs or​ quit entirely,​ you​ keep the​ money and​ the​ account .​

The account is​ a​ bank account in​ your name .​

What is​ great about this plan is​ that most employers will actually put money in​ this account for you! Every year,​ my company puts in​ $2000 for me to​ use for medical expenses .​

However there is​ one catch that you​ need to​ know about before pursuing this plan .​

This is​ a​ high deductible plan,​ which means that my deductible is​ also $2000 per year .​

This plan will really pay off if​ ​ you​ are a​ healthy individual,​ who expenses are less than $2000 per year .​

Once again,​ check with your Human Resources Department to​ get more details on​ this type of​ plan.
By using these two plans you​ can save a​ tremendous amount of​ money on​ your medical expenses and​ in​ the​ process reduce the​ amount of​ taxes you​ will pay at​ ​ the​ end of​ the​ year .​

if ​ you​ have planned medical expenses every year that it​ will benefit you​ by planning ahead and​ investigating one of​ these tax free plans.




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