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Archer Medical Savings Account

   Also found in: Acronyms 0.01 sec.
Archer Medical Savings Account
An account into which one makes tax-deferred contributions that can be used for present and future medical expenses. An Archer MSA is used in conjunction with an insurance policy with a high deductible. An Archer MSA may be used in order to offset the high deductible on one's other insurance policy.

One does not pay taxes on withdrawals from a health savings account, unless one withdraws funds for a non-medical reason, in which case they are taxed as ordinary income. If one is under 65, there may also be a penalty associated with a non-medical withdrawal.


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Eligible accounts include traditional and Roth IRAs, health savings accounts, Archer medical savings accounts, Coverdell education savings accounts, and qualified tuition programs (529 plans).
Created by the Medicare Modernization Act, which was signed by President Bush in December 2003, health savings accounts have in one year already surpassed the peak market penetration achieved over nearly 10 years by their predecessor, the Archer Medical Savings Accounts, noted Karen Ignagni, AHIP's president and chief executive officer.
Similar set-ups, the Archer Medical Savings Accounts, for instance, have been around for a while.
 
 
 
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