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 ?
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)].
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).
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.
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.
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.
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.
Similar set-ups, the Archer Medical Savings Accounts, for instance, have been around for a while.
(21.) Archer Medical Savings Accounts are governed generally by IRC Secs.
Eligible accounts include traditional and Roth IRAs, health savings accounts, Archer medical savings accounts, Coverdell education savings accounts, and qualified tuition programs (529 plans).