Figuring Out Your Health Retirement Account

A health retirement account can be a little confusing if you do not know much about them. You might have one from your employer and not really understand it. A health retirement account can be a valuable asset to your financial picture, if used properly.

First Dollars Expenses

The main idea behind health retirement accounts is to cover what is known as "first dollar expenses". This is a supplement to your existing insurance coverage. It is by no means meant to replace it. All insurance companies come with some form of a co-payment and co-insurance. In many cases, plans will have a high deductible in order to minimize premiums. Coming up with this deductible can be a problem. With this type of account, the object is to save a portion of your paycheck in an account to cover this amount.

Accumulation

The great thing about this plan is that it can accumulate tax free for you until you retire. If you have medical expenses, you can use it tax free. If you don't, you can later use the money on whatever you want. It is really a flexible plan that allows you to save some money on insurance.

 

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