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 co-pays?

If so, there are a couple of medical saving plan available that would allow
you to use tax-free money to pay for your medical expenses. That is an
automatic 28%+ savings! You see every time you pay the co-pay 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 co-pays 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 win-win.

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 high-deductible 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.

About The Author: Learn How to Save Money On Your Taxes by signing up for my
Free 7-Day Email Course on http://www.taxes-rule.com. Also learn how your
401(K) Plan can save you money on your taxes.