Archer Medical Savings Account (MSA) Contributions
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If you participate in a high deductible health plan (HDHP), an Archer medical savings account (MSA) can be set up by you or your employer to pay for qualified medical expenses. A Medicare Advantage MSA can be used by people with a high deductible health plan who are enrolled in Medicare.
For purposes of an Archer MSA, an HDHP is a health plan that meets the following requirements:
SELF ONLY COVERAGE:
Minimum annual deductible of $2,850
Maximum out of pocket expense: $5,300
FAMILY COVERAGE:
Minimum annual deductible of $5,700
Maximum out of pocket expense: $9,650
A medical savings account is different than a flexible spending account and a health savings account (HSA). Many people have a flexible spending account where they withhold part of their salary for medical expenses and receive reimbursements when they submit their medical expense receipts to their employer.
If your employee MSA contributions are made through your employer, your W-2 wages will have already been reduced by the amount you contributed to the MSA, and the amount of MSA contributions your employer made on your behalf are tax-free. So for an employer-based MSA, you won't have a deduction for the MSA contributions on your tax return, but you still need to report your MSA information on your tax return.
If you have your own MSA plan that is not part of your employer's MSA, you'll receive a deduction on your tax return for any MSA contributions you make during the year.
If you participate in a high deductible health plan (HDHP), an Archer medical savings account (MSA) can be set up by you or your employer to pay for qualified medical expenses. A Medicare Advantage MSA can be used by people with a high deductible health plan who are enrolled in Medicare.
For purposes of an Archer MSA, an HDHP is a health plan that meets the following requirements:
SELF ONLY COVERAGE:
Minimum annual deductible of $2,850
Maximum out of pocket expense: $5,300
FAMILY COVERAGE:
Minimum annual deductible of $5,700
Maximum out of pocket expense: $9,650
A medical savings account is different than a flexible spending account and a health savings account (HSA). Many people have a flexible spending account where they withhold part of their salary for medical expenses and receive reimbursements when they submit their medical expense receipts to their employer.
If your employee MSA contributions are made through your employer, your W-2 wages will have already been reduced by the amount you contributed to the MSA, and the amount of MSA contributions your employer made on your behalf are tax-free. So for an employer-based MSA, you won't have a deduction for the MSA contributions on your tax return, but you still need to report your MSA information on your tax return.
If you have your own MSA plan that is not part of your employer's MSA, you'll receive a deduction on your tax return for any MSA contributions you make during the year.
