Online Guide to
Medical Savings Accounts
|Life Insurance Calculator|
How much life insurance
do you need? Use our free
calcuator to find out. Get
quotes from over 100 major
Term Life Insurance Carriers.
|Medical Savings Account (MSA) (n. - definition) - a tax deferred account effective as of January 1, 1997 that allows taxpayers to save money for medical expenses.|
by Insurance Online Advisors
Free Quotes: Car Insurance - Health Insurance - Life Insurance
A Medical Savings Accounts (MSA) is a tax deferred accounts that allows taxpayers to save money for medical expenses.
An employer or self employed individual can use the money that currently pays for health insurance and deposit a portion of it into a newly established Medical Savings Account (MSA), up to $1,400 for an individual or $3,375 for a family. The other portion is used to purchase a high deductible health insurance policy.
MSA funds are used to pay the first $1,400 worth of medical expenses directly. These expenses are broadly defined and cover any medical expense that is currently tax deductible.
Medical Savings Accounts provide an incentive to shop carefully for medical care. Left over money (including accumulated interest) can either be saved tax free for future medical expenses, or partially withdrawn for nonmedical expenses subject to taxation and a 15 percent penalty.
Copyright © 1998-2007. Medical Savings Account Information Guide. All rights reserved.