Tax advataged way to put aside money for retirement medical costs

One option would be to switch your health insurance to a high deductible health plan that would make you eligible for a Health Savings Account. You or the corporation could then contribute more than $5,000 per year (assuming you have family coverage and that the new tax legislation is signed by President Bush as expected) to the account on a pre-tax basis. The earnings in the account accumulate tax free, and any distributions from the account for medical expenses are tax free. If you have other enployees, then you have potential ERISA issues if you don't offer them the same or better options.

--Chris

You might consider a Health Savings Account (HSA).

For the gory details, see IRS publication 969:

I have an HSA. It has been helpful, but it has its administrative rigmarole. I use it to pay current medical bills, though, rather than saving for retirement. For me, it's basically equivalent to avoiding the 7.5% Schedule A threshold for medical expenses.

One option would be to switch your health insurance to a high deductible health plan that would make you eligible for a Health Savings Account. You or the corporation could then contribute more than $5,000 per year (assuming you have family coverage and that the new tax legislation is signed by President Bush as expected) to the account on a pre-tax basis. The earnings in the account accumulate tax free, and any distributions from the account for medical expenses are tax free. If you have other enployees, then you have potential ERISA issues if you don't offer them the same or better options.

--Chris

You might consider a Health Savings Account (HSA).

For the gory details, see IRS publication 969:

I have an HSA. It has been helpful, but it has its administrative rigmarole. I use it to pay current medical bills, though, rather than saving for retirement. For me, it's basically equivalent to avoiding the 7.5% Schedule A threshold for medical expenses.