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If you think about it, sometime during the next twelve months,
you or a member of your family will likely incur some medical, dental,
or vision expense that you will be responsible for paying. Expenses
that are applied toward a deductible or copayment, or perhaps an
expense that simply is not covered by your insurance. Expenses such
as prescriptions, physicals, eyeglasses, contacts, contact lens
solutions, or dental expenses.
Normally
you would pay for these expenses with after-tax income. Unfortunately,
because taxes reduce the value of a dollar, you will have to earn
considerably more than a dollar to pay for a dollar of expenses.
But now you have an opportunity to pay your out-of-pocket medical,
dental and vision expenses with pre-tax income and since pre-tax
income is not subject to federal income taxes, state income taxes,
or FICA taxes you save!
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