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.
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8K * 'MSA' refers to Archer Medical Savings Accounts, which were authorized prior to 2004.
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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).
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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.
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Similar set-ups, the Archer Medical Savings Accounts, for instance, have been around for a while.
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Archer Medical Savings Accounts are governed generally by IRC Secs.
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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).
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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.
Follow the leader: as Wal-Mart and other mega-employers offer health savings accounts, some industry experts believe it's only a matter of time until more companies jump on the HSA bandwagon
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