What you will learn

A 401(h) plan is a medical expense account under Code Section 401(h). The plan pays for costs associated with sickness, accident, hospitalization, and medical expenses of retired employees (EEs) (and their spouses and dependents).

One of the largest expenses of retirees is their health-care costs. How do retirees pay for such costs? Typically, with savings or out of their taxable income.

With a 401(h) Plan, an employer can take a 100% deduction to fund a tax-free sinking fund where when retired EEs remove money from the plan to pay for medical expenses, there are NO income taxes due.

The 401(h) post retirement medical option is perhaps the most overlooked and underutilized plan benefit in the industry today. The 401(h) benefit can add up to 33.33% to the otherwise maximum tax deductible contribution of your pension plan. Learn More

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About The Author

Mr. DeFrancesco is an attorney, but he’s really an educator at heart. He is most interested in making sure that the maximum amount of people read his books. His main company is an educational institute where he educates advisors on how to provide the best advice to clients.

This PDF was put together primarily so advisors would have the best tools available to educate and motivate clients to take action to protect and grow their wealth. It is for this reason that he has allowed me to provide his free downloads and educational material.

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