Use your employer's flexible health care spending plan.

Your employer may offer a flexible spending plan that allows you to put dollars in an account without the payroll taxes being deducted first.

You are then reimbursed for your out-of-pocket medical expenses, such as copays, prescription drugs, dental care, etc.

Because these contributions are taken out of your pay before federal and state taxes are calculated, you get to use pretax dollars to pay your medical bills.

That saves you between 10-35% of your bill, depending on your federal tax bracket. It also spreads the cost out over the year, saving you painful lump sum withdrawals.