We all need medical attention sometime, so what the heck I’m talking about a “medic account” Basically I’m talking about a “HSA” (Health Saving Accounts) We always run into a situation where you chip a tooth or like me not wearing my safety glasses and a piece of debris get in my eye. The medic account is really a unique saving accounts with a combination of a high deductible health insurance and tax benefits. When your deductible is met, then the insurance will start paying. Any money leftover is your saving and can be invested.
What’s so special about it? Well I’m glad you ask, Your medic account is your lifeline it can only be used for qualified medical, dental, and vision. Each HSA plan is different so you will have to pay attention to what qualify under medical. Here is a general list. Not only that, your medic account is a tax-deductible deposit, tax-free , and tax deferred growth.
Tax Free: Any withdrawal/payment made from this account is tax-free only if it’s used for qualified medical, dental, and vision.
Tax deferred: You get to keep your investment earning/contribution.
So if you’re young and invisible , you might be able to use the medic account for the future. Since most young people don’t go to the doctor that often you can contribute to the max and always invest. Some medic account will have a minimum limit that you must keep in the HSA account, before you can invest the money in the medic account. So why not get this medic account if you have max out all your 401k & Roth/IRA. Then max out your medic account it will be worth it in the long run. Once you hit that old age you will have to go to the doctor more often, but you will also be prepared since you have a medic account.
You will also need to evaluate to see if your company offer the medic account. Fortunately my company does offer the medic accounts. So each companies will vary. Do pay attention to the fees of your medic account, some funds fee may be higher than other so compare it. Make sure to maintain a good records for any qualified medical expense, in case they ask for proof. Some medic account provide debit card for easy to access for medical needs.
So do you have any medic account?