It just depends on your marginal tax rate...
For example: Lets assume your marginal tax rate is 20%.
You could put up to 120% of your medical expenses in, and still break even because of the tax savings... (I don't recomend it though.)
Just food for thought so you don't underestimate too much. We try to pre-budget our out of pocket expenses for medical visits, glasses, dentist, prescription drugs, etc... as much as possible and then have exactly that amount taken out (Remember it gets taken out on a pre-tax basis, so you save yourself loads of money assuming you have an annual tax liability).
Then the unforseen visits always put us over the top. I think there was only one year that we didn't use all the money. In the long run, you come out way ahead...
Flame » in reply to Cafeteria Plan and yes you forfeit
You can over-estimate, forfiet some of your money and still come out ahead...
The whole thread (32 posts)
- MedFICO coming our way
- If implemented, they can plan to lose their shirts
- Could be disasterous
- Medicine in the USA is so tied up in red tape...
- Open up a health savings account.