DEFINITION of 'Archer MSA'

A savings account that earns tax deductible interest for medical expenses. Archer MSAs are often used by small business or self-employed individuals as a way to pay for healthcare services to employees. This type of account gets its name from Bill Archer, the congressman who helped create the MSA by sponsoring its amendment.

BREAKING DOWN 'Archer MSA'

An Archer MSA works much like an IRA. The account owner will make contributions and earn interest on the funds. The gains are tax-defered or tax free when withdrawn for medical expenses. If funds are removed for other reasons, a penalty may be incurred and taxes will usually apply.

RELATED TERMS
  1. Medical Savings Account - MSA

    A medical plan combining high-deductible medical insurance protection ...
  2. Self-Employment Tax

    Money that a small business owner must pay to the federal government ...
  3. Self-Employed

    A situation in which an individual works for himself or herself ...
  4. IRS Publication 502: Medical And ...

    A document published by the Internal Revenue Service detailing ...
  5. Individual Retirement Account - ...

    An investing tool used by individuals to earn and earmark funds ...
  6. Flexible Spending Account - FSA

    A type of savings account available in the United States that ...
Related Articles
  1. Taxes

    20 Tax Changes You Need To Know About

    Don't miss out on the tax changes. Here's a list that you need to know about.
  2. Insurance

    Health-y Savings Accounts

    HSAs can provide a new way to save for retirement and medical expenses.
  3. Trading

    Archer Daniels Midland Stuck In Neutral

    Archer Daniels Midland should remain stuck within an 8-month trading range after filing a mixed earnings report that's unlikely to attract new buyers.
  4. Taxes

    8 Tax Benefits For The Self-Employed

    Profitability in business depends on minimizing costs and maximizing resources. Here are several tax benefits that are available for the self-employed.
  5. Financial Advisor

    How to Deduct Medical Insurance Premiums

    An overview of tax breaks for those who pay medical insurance premiums.
  6. Taxes

    10 Tax Benefits for the Self-Employed

    Running your own business has both personal and financial perks.
  7. Investing

    Who Are the 7 Wealthiest Congressmen?

    A look at how the seven wealthiest members of the House of Representatives made their fortune.
  8. Taxes

    Increase Your Tax Refund With Above-The-Line Deductions

    Find out about these deductions and how you can use them to lower your tax bill.
  9. Taxes

    Business Taxes: Not Paying More Than You Have To

    If you're a small business owner, note these potential tax deductibles so that you don't pay taxes that could have been extra revenue in your account.
  10. Taxes

    How To Calculate AGI For Tax Purposes

    The first step in completing your taxes is calculating your adjusted gross income. Here’s how.
Hot Definitions
  1. Tender Offer

    An offer to purchase some or all of shareholders' shares in a corporation. The price offered is usually at a premium to the ...
  2. Ponzi Scheme

    A fraudulent investing scam promising high rates of return with little risk to investors. The Ponzi scheme generates returns ...
  3. Dow Jones Industrial Average - DJIA

    The Dow Jones Industrial Average is a price-weighted average of 30 significant stocks traded on the New York Stock Exchange ...
  4. Revolving Credit

    A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is ...
  5. Marginal Utility

    The additional satisfaction a consumer gains from consuming one more unit of a good or service. Marginal utility is an important ...
  6. Contango

    A situation where the futures price of a commodity is above the expected future spot price. Contango refers to a situation ...
Trading Center