125 c Plans and Infertility Options

m-link">behind them is basically the same. Employees can set
Paying for any type of medical treatment can beaside a limited amount of pre tax dollars from their
separated into three basic options. • Healthcarepaychecks into a savings account, and then use
plans usually offered by your employer orthose funds to reimburse yourself once you have
professional organization. • From your own savingspaid out of pocket for medical care. Each plan has
or other private arrangement such as a bank loan.limitations on the amount that you can set aside,
• Grants and other programs offered by somewhat constitutes a reimbursable medical expense, and
patient advocacy groups and clinics.the time frame (usually these need to be used
Unfortunately, with many healthcare plans limitingannually).
coverage the second option is often the only optionThe IRS has defined what is allowed to be
for many couples wanting to conceive their own child.reimbursed from these accounts, and some to most
Couples will pull funds from many sources to coverfertility treatments do qualify. Exactly what is allowed
out of pocket expenses in treating their infertility asfor reimbursement depends upon the type of
well as attempt to gain coverage through their healthaccount. The rules for these accounts and eligibility
insurance coverage. The most common out ofare complex and should be discussed with your
pocket solutions are cash reserves, home equity linesHuman Resources or Benefits department. Speak
of credit, secured or unsecured loans, and retirementwith your Financial Advisor or Accountant to make
savings plans. Section 125( c) medical savings plans,sure you understand all of the possible tax
employer sponsored savings plans, are a type ofimplications of using the health care flexible spending
hybrid of these two funding sources.account.
Even though flexible medical spending accounts areOf all of the ways to personally fund infertility
limited in what types of treatments the account cantreatment Section 125 ( c) plans offer the most
be used to pay for and amount of money that canbenefits with the least restrictions and penalties. Why
pass through them in a single year, they are excellentdip into your cash reserve and risk your financial well
venues to pay for some medical expenses. Healthbeing, or whittle away at your retirement when other
savings accounts have two big benefits.options have not been exhausted. Ask your Infertility
• Pre tax dollars set asideConsultant to point you to a financial expert if you
• Non taxable withdrawsdon’t already have one. Often just reducing
Even though these are many slightly differentthe stress that finances put on infertility treatment
programs which your employer may offer the ideacan help increase your chances of success.