| Do you have medical expenses that you incur every | | | | medical expenses, our government has come up with |
| single year? Do you always use up your entire medical | | | | what is known as a high-deductible savings plan for |
| insurance deductible on co-pays? | | | | medical expenses. How it works is this, you can set |
| If so, there are a couple of medical saving plan | | | | aside money, tax free, into an account that you own. |
| available that would allow you to use tax-free money | | | | What this means is that if you decide to change jobs |
| to pay for your medical expenses. That is an | | | | or quit entirely, you keep the money and the account. |
| automatic 28%+ savings! You see every time you pay | | | | The account is a bank account in your name. What is |
| the co-pay using your checkbook, credit card, or debit | | | | great about this plan is that most employers will |
| card you are paying with money that has already | | | | actually put money in this account for you! Every year, |
| taxed by the federal, state, and local governments. | | | | my company puts in $2000 for me to use for medical |
| The first medical savings plans that allows you to pay | | | | expenses. However there is one catch that you need |
| for your co-pays with tax free money is called a | | | | to know about before pursuing this plan. This is a high |
| Flexible Spending Account, or sometimes just called a | | | | deductible plan, which means that my deductible is also |
| "Flex Account". How does a Flex Account work? | | | | $2000 per year. This plan will really pay off if you are |
| Simple. You simply inform your employer that you wish | | | | a healthy individual, who expenses are less than $2000 |
| to set a portion of your paycheck aside for medical | | | | per year. Once again, check with your Human |
| expenses. To do this you will need to visit your Human | | | | Resources Department to get more details on this |
| Resources department and fill out the appropriate | | | | type of plan. |
| form. And then each pay period, the designated | | | | By using these two plans you can save a tremendous |
| amount of money is withheld from your check, tax | | | | amount of money on your medical expenses and in |
| free, and deposited in a savings account for you to | | | | the process reduce the amount of taxes you will pay |
| use for your next doctor's visit. And the best part, | | | | at the end of the year. If you have "planned medical |
| since you are withholding the money tax free, you will | | | | expenses" every year that it will benefit you by |
| pay less in taxes at the end of the year. It's a win-win. | | | | planning ahead and investigating one of these tax free |
| The second medical savings plan is called a HSA or | | | | plans. |
| Health Savings Account. Due to the rising cost of | | | | |