If You Have Health Insurance With Your Emplorer (103)

To increase sources of funding maybe the answer is to take a look at your employee benefits for additional savings. How about 17.65% or more off you health insurance premium? You deserve a better standard of living.

If you have health insurance with your employer, several things need to be checked.

Does you employer pay for your health insurance with money that has not been taxed? This system is referred to as a "premium only" cafeteria plan under Internal Revenue Code (IRC) Section 125.

Some employers has a "full" (section 125) cafeteria plan which has the same tax benefit plus you can have an additional amount set aside in a benefit account to pay for other medical expenses.

Here are some of the expenses you could be paying with a Section 125: that are not paid by insurance.

* Certain Over the Counter Medications * Health & Dental Insurance Premiums * Vision Care and Eyeglasses * Prescription Medications * Physician Office Visits * Chiropractic Care * Deductibles & Co-Payments * Long-Term Care Insurance Premiums * Dental Care & Orthodontia

Pay medical expenses with pre-tax, pre-social security tax, dollars which are at least a 17.65% savings or more, depending on your tax rate will be a substantial savings. You could put this money into savings or you could make an extra payment on a high interest credit account.

Do you have a pension plan?

For profit making companies

Internal Revenue Code (IRC) Section 401(k) is a payroll deductible retirement plan where the employee makes a contribution and the employer usually make a match. The deduction should be no less than the amount that receives the match. If the match is 100% up to 5% of salary or wages, and you make $25,000 then the match will be $1250.00 If salary is $50,000 then matching fund would be $2500.00. The amount you put in the plan is doubled without risk and then is invested to grow either in a fixed account or several investment accounts.

For non-profit companies or government employees.

A 403 (b) plan of the Internal Revenue Code, is a retirement savings plan funded by employee contributions. This plan is offered by tax- exempt entities such as churches, charities, and schools. The allowable contribution limit to a 403(b) plan change over time, and contribution are made on a pre-tax income, but are taxed on withdrawal from the plan. Full ownership occurs when the contributions are made. Take advantage of before tax contribution and time value of money

After all your income tax is taken out of you paycheck, why not do the same with your savings. The saving will be very important to you in the future. Remember retirement is when time, money and good health all available at the same time. What missing in your retirement plan.