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

Taxpayers can also rollover amounts contributed to an Archer Medical Savings Account to an HSA under the 60-day reinvestment rule [IRC section 220(f)(5)(A)].

Medicare prescription drug act of 2003: tax incentives encourage high-deductible medical insurance plans

2010-23) implementing the Patient Protection and Affordable Care Act's prohibition on reimbursement of the cost of over-the-counter (OTC) drugs by health savings accounts (HSAs), health retirement accounts (HRAs), Archer medical savings accounts (MSAs), and flexible spending accounts (FSAs).

IRS guidance on FSA and HSA reimbursements for OTC drugs

A similar rule goes into effect January 1,2011, for health savings accounts and Archer medical savings accounts. Additional information on this new standard is available at http://www.

Federal agency implementation of the Patient Protection and Affordable Care Act

Effective in 2011, distributions from an HSA or Archer Medical Savings Accounts not used to pay qualifying medical expenses will be subject to an additional 20 percent tax.

Legislation includes important tax changes for businesses and individuals

NQDC does not include vacation or sick leave, compensatory time, disability pay or death benefit plans; IRC section 220 Archer Medical Savings Accounts; IRC section 223 Health Savings Accounts or most other medical reimbursement arrangements.

Play by the rules: IRC section 409A imposes new requirements on nonqualified deferred compensation

Archer medical savings accounts. Self-employed individuals and small businesses can save on healthcare costs by supplementing a high-deductible health plan with a savings-type account.

Tax breaks under the Working Families Tax Relief Act of 2004

Similar set-ups, the Archer Medical Savings Accounts, for instance, have been around for a while.

The new health savings accounts

Eligible accounts include traditional and Roth IRAs, health savings accounts, Archer medical savings accounts, Coverdell education savings accounts, and qualified tuition programs (529 plans).

IRS allows penalty-free withdrawal of stimulus payments from IRAs