The National Directory of Certified Public Accountants

Ask A CPA - Health Savings Accounts

What Is A MSA?

MSA are also known as "Archer medical savings accounts" or "Archer MSAs." 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. Participants pay healthcare expenses from this account up to the amount of the insurance deductible. Archer MSAs cannot be established after 2007 and have been replaced by health savings accounts (HSAs), which were introduced in 2003. 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.

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