I had an interesting conversation with a friend yesterday about one of the ways to save money that has been in the back of my mind for a while but I never acted on it. He was now eligible for a Health Savings Account because of the high deductible and this reminded me that I am also on a high deductible plan and had been thinking of getting a Health Savings Account as well.
I currently have a Flexible Spending Account where money is taken out of my paycheck pre-tax and I can then use that money for qualified medical expenses. The bad thing about the Flexible Spending Account is that you only get to use the money for one year and once that time period runs out then you lose the balance.
The good thing about the Health Savings Account is that there is no expiration date on the money and you can even withdraw it after retirement by paying the ordinary income taxes on it.
I need to do some more research to see what I will need in order to get my new account started because it will soon be time to change the contributions and other things on insurance now that we are about to start work again next week.