What is a Medical Savings Account (MSA) and what are its benefits?
An Archer MSA is a tax-exempt trust or custodial account that you set up with a U.S. financial institution (such as a bank or an insurance company) in which you can save money exclusively for future medical expenses.
What are the benefits of an Archer MSA? You may enjoy several benefits from having an Archer MSA. These include:
- You can claim a tax deduction for contributions you make even if you do not itemize your deductions on Form 1040 or Form 1040NR.
- The interest or other earnings on the assets in your Archer MSA are tax free.
- Distributions may be tax free if you pay qualified medical expenses.
- The contributions remain in your Archer MSA from year to year until you use them.
- An Archer MSA is portable so it stays with you if you change employers or leave the work force.
To find out who qualifies to have a Medical Savings Account, click here.