DEFINITION of 'Medical Savings Account - MSA'

A medical plan combining high-deductible medical insurance protection with a tax-deferred savings account that can be offered by employers as part of a benefits package. Medical savings accounts are designed to help participants pay for medical and healthcare expenses by allowing them to save for those expenses in a tax-sheltered environment. Participants pay healthcare expenses from this account up to the amount of the insurance deductible.

Also known as "Archer medical savings accounts" or "Archer MSAs."

BREAKING DOWN 'Medical Savings Account - MSA'

Archer MSAs cannot be established after 2007 and have been replaced by health savings accounts (HSAs), which were introduced in 2003. However, MSAs already established can continue to accept new contributions. MSAs can also be rolled over into HSAs, but no new contributions can be made once the account holder becomes eligible for Medicare.

RELATED TERMS
  1. Archer MSA

    A savings account that earns tax deductible interest for medical ...
  2. IRS Publication 502: Medical And ...

    A document published by the Internal Revenue Service detailing ...
  3. Medical Underwriting

    The process of assessing the risk associated with providing health ...
  4. Savings Account

    A deposit account held at a bank or other financial institution ...
  5. Medical Cost Ratio

    A comparison of a health insurance company's healthcare costs ...
  6. Healthcare Sector

    A category of stocks relating to medical and healthcare goods ...
Related Articles
  1. Insurance

    Health-y Savings Accounts

    HSAs can provide a new way to save for retirement and medical expenses.
  2. Insurance

    Rules For Having A Health Savings Account (HSA)

    Do you qualify? What does it cover? How to see if it makes sense to sign up for a High-Deductible Health Plan with a Health Savings Account.
  3. Retirement

    Planning for Healthcare Costs in Retirement

    Healthcare often is the highest cost during retirement. Here's how to plan for and possibly buck that trend.
  4. Insurance

    A Health Savings Account Can Make a Big Difference

    Health savings accounts provide excellent tax benefits but are often overlooked.
  5. Insurance

    Do This If Health Insurance Doesn’t Cover Your Bills

    Health insurance doesn't pay enough to help the millions of consumers who are drowning in medical debt. Are there any other options to soften the blow?
  6. Insurance

    Health Savings Accounts: What You Need to Know

    The the popularity of Health Savings Accounts is on the rise. Here's how they work.
  7. Financial Advisor

    Forget 401(k)s: Put Your Next Savings Dollar Here

    A 401(k) might be the post popular option for retirement savings, but there is another lesser-known option that may make sense for many.
  8. Taxes

    A Last-Minute Tax Deduction: Health Savings Accounts

    There’s one deduction that your tax person might not talk about as much as he or she should: health savings accounts (HSAs). Here’s what you need to know.
  9. Insurance

    Get Sale Prices On Healthcare With Discount Plans

    Medical discount plans can help the uninsured or underinsured afford better healthcare.
  10. Financial Advisor

    How to Convince Savers to Put More into HSAs

    HSAs represent a fourth leg on the retirement planning stool. Here's what employees and employers need to know.
RELATED FAQS
  1. What are catch-up contributions for Health Savings Accounts (HSAs)?

    Learn about Health Savings Accounts (HSAs) and how an eligible individual of age 55 or older can make additional catch-up ... Read Answer >>
  2. How is the deductible I paid for my insurance claim treated for tax purposes?

    Find out how your health insurance deductible is treated for tax purposes and under what conditions you may be able to deduct ... Read Answer >>
  3. What economic factors affect savings account rates?

    Find out how supply, demand and central bank policy all affect savings account rates offered by banks for extra deposits ... Read Answer >>
Hot Definitions
  1. Stagflation

    A condition of slow economic growth and relatively high unemployment - a time of stagnation - accompanied by a rise in prices, ...
  2. Notional Value

    The total value of a leveraged position's assets. This term is commonly used in the options, futures and currency markets ...
  3. Interest Expense

    The cost incurred by an entity for borrowed funds. Interest expense is a non-operating expense shown on the income statement. ...
  4. Call Option

    An agreement that gives an investor the right (but not the obligation) to buy a stock, bond, commodity, or other instrument ...
  5. Pro-Rata

    Used to describe a proportionate allocation. A method of assigning an amount to a fraction, according to its share of the ...
  6. Private Placement

    The sale of securities to a relatively small number of select investors as a way of raising capital.
Trading Center