| A medical savings account is designed particularly | | | | the money can be set aside for future retirement |
| to provide retirement benefits by maintaining an | | | | use. Characteristically, medical savings accounts |
| account that is used to pay for day-to-day minor | | | | work well for people in good health, who are not |
| medical bills. The plan makes available tax | | | | burdened with never-ending medical bills. |
| incentives to facilitate purchase of high deductible | | | | Small business concerns operating on inadequate |
| health insurance and simultaneously sustain an | | | | funds use these policies to provide employees a |
| account to pay for regular medical costs. This | | | | minimum amount of health benefits. Similar to |
| permits taking out money for trivial medical | | | | individual retirement accounts, account holders do |
| expenses, which include dental fees, eyeglass | | | | not require approval from the Internal Revenue |
| repairs, hearing aid accessories and also parking at | | | | Service to start an account. It is, however, |
| hospitals or physician's offices. | | | | obligatory for a competent guardian such as an |
| The policy is designed to cater to workers. | | | | insurance company, bank or a financial institution, |
| However, not everyone qualifies and regulations | | | | to open the account. |
| are different for employees and the | | | | At times it may not be easy to come across an |
| self-employed. Contributions to a medical savings | | | | organization that works with these accounts. A |
| account are always deductible. In case of an | | | | majority of banks and brokerage businesses do |
| individual, they are deductible in tune with gross | | | | not cater to these needs. However, most health |
| income, whereas if a company contributes, then it | | | | insurance companies do offer these accounts. |
| is non-taxable to employees. These are | | | | This should not discourage prospective account |
| advantageous for self-employed people and small | | | | seekers from searching for a financial guardian, |
| companies. | | | | since a medical savings account goes a long way |
| Leaving aside the amount used by account | | | | in securing some peace of mind for retirement. |
| holders to pay for small medical bills, the rest of | | | | |