Archer Medical Savings Account


Also found in: Acronyms.

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.
References in periodicals archive ?
HSAs were modeled after the Archer Medical Savings Accounts (MSAs).
Eligible accounts include traditional and Roth IRAs, health savings accounts, Archer medical savings accounts, Coverdell education savings accounts, and qualified tuition programs (529 plans).
By mid-2005, about one year after implementation, the plans had already surpassed the peak market penetration achieved over nearly 10 years by their predecessor, the Archer Medical Savings Accounts, said Karen Ignagni, president and chief executive officer of America's Health Insurance Plans.
HSA Bank, which began administering Archer medical savings accounts (MSAs) in 1997, is the nation's largest administrator with 110,000 HSAs and $200 million in deposits.
For individuals, the act extends provisions relating to contributions to Archer Medical Savings Accounts and the deduction for educator expenses.
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.
Roughly 40,000 Archer Medical Savings accounts (the precursor to HSAs) were established during the first year of their existence, she said, and they failed to reach the same level of market penetration in 10 years that HSAs have already achieved.