Is More Health Coverage Worth The Purchase?
This can allow for a nice chunk of money to accumulate that can be withdraw tax free at age 65. Money can be rolled over from year to year. Unlike the older Flexible Savings Accounts offered in employer cafeteria plans, you don’t have to spend the money put into the account by year end or otherwise lose whatever’s left. A trustee approved by the IRS must be used. The plan is set up like an IRA. Money put in the plan grows tax free and funds withdrawn for qualified medical expenses are also tax free.