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May 04, 2005

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The details provided on the plan Matt purchased sound like it would qualify as a high deductible health plan under the Health Savings Account (HSA)regulations. Thus, in addition to being a sole proprietor and being able to deduct his monthly premium as a business expense Matt can:

One - anticipate what his medical related expenses are going to be and put funds to cover them into a HSA savings account as before tax dollars.

Two - put in dollars to pay for care such as orthodontic work for his children on a before tax basis.

Three – put in dollars on a before tax basis for the - What If situation! e.g. one of the kids breaking a bone in a sporting activity.

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