Tax-Free Medical Benefits
Post Retirement Medical Expense Reimbursement Account
- Tax Deductible
- Tax-Deferred Growth
- Tax-Free Distributions
The Post-Retirement Medical Expense Reimbursement Account Benefit is the most overlooked benefit in the industry. One of the largest expenses a retiree faces is health care costs.
Health Care Costs for Average American Couple Retiring Today
The average lifetime retirement health care premium costs for a 65-year-old healthy couple retiring this year and covered by Medicare Parts B, D, and a supplemental insurance policy will be $266,589. If we were to include the couple’s total health care (dental, vision, co-pays, and all out-of-pocket), their costs would rise to $394,954. For a 55-year-old couple retiring in 10 years, total lifetime healthcare costs would be $463,849.
The IRC Code Section 401(h) Medical Expense Account can currently accumulate up to $632,000, which can be distributed tax-free for post-retirement medical benefits. Employers can create an account and take a 100% deduction, grow tax-deferred, and then distribute the funds tax-free for post-retirement medical benefits.
Example of Medical Expense Reimbursement Benefits
Acupuncture | Hospitalization Insurance |
ADD Counseling and Assistance | Hospital Bills |
Air Lift Transportation | Insulin |
Alcoholism | Laboratory Fees |
Alternative Healthcare | Laetrile by Prescription |
Alternative Medicines | Lasik Eye Surgery |
Ambulance | Hire Lead Base Paid Removal-Children |
Artificial Limbs | with Lead Poisoning |
Example of Medical Reimbursement Benefits
Artificial Teeth | Retirement Home for Medical Care |
Assisted Living Facilities | Long Term Care, Nursing Homes |
Asthma and Allergy Treatment | Medical Information Plan |
Birth Control Pills | Medicines |
Braces | Membership Fees for Medical Services, |
Braille-Books and Magazines | Hospitalization, Clinical Care, Health |
Chiropractors | Maintenance, Health club memberships |
Christian Science Practioners’ Fees | Nurses Fees, Nurses Room and Board |
Contact Lenses Including Exam Fee | S.S. Tax (Where Paid by Taxpayer) |
Co-Pays | Obstetrical Expenses |
Cosmetic Surgery (Even Though | Operations (100% of All Costs) |
not by a Physician) | Orthopedic Shoes |
Cost for Care Outside the United States | Oxygen |
Cost of Operations & Related Treatments | Personal Trainers |
Counseling | Physical Therapy |
Crutches | Physician Fees |
Deductibles | Premiums for LTC |
Dental Cosmetic Surgery | Preventive Care including but not limited to |
Dental Fees | Spa Facilities, Usage Fees for Facilities |
Dentures | Prosthetics |
Dependent Care | Psychiatric Care |
Dermatologist Care | Psychologist Fees |
Diagnostic Fees | “Seeing-eye” Dog and its Upkeep |
Drugs | Specialists and Specialized Treatments |
Electrolysis | Specially Equipped Cars |
Experimental Care | Special Care Costs for Disabled Dependents |
Example of Medical Reimbursement Benefits
Eyeglasses, Including Examination Fee, | Special Diets |
Laser Surgery for Vision Correction | Sterilization Fees |
Fees of Practical Nurse | Support Groups |
Fees for Healing Services | Surgical Fees |
Fees of Chiropractors | Therapy Treatments |
Fees for Fitness Programs and Facilities | Transport Expenses for Medical Services |
Fees of Licensed Osteopaths | >including Preventative Care |
Flu Shots | Tuition at Special School for Handicapped |
Hair Transplants | Viagra |
Health Insurance Premiums | Vitamins |
Hearing Devices and Batteries | Wheelchair |
Hospice | Weight Loss Programs |
In Home Care | X-rays |