Reply #72: If you have kids and can estimate their HC costs ( in our case it's dental + braces)

[mod mom]

they allow you to use income tax free. The problem is if you don't use all the money, you don't carry it over you lose it.

Ours also came in handy after my husband required 7 surgeries after getting flesh eating bacteria. We knew what out of pocket costs we were going to occur and had a big deductible per procedure. We still had to pay for the surgeries, but at least the MSA funds were exempt from state and federal tax.

We are not wealthy, but also not living pay check to paycheck. Kids cost alot.