A few important things everyone should know about Archer Medical Savings Accounts (MSAs).

What exactly is an Archer MSA?

An Archer MSA is a tax-exempt trust or custodial account that you set up with a U.S. financial institution (such as an Archer MSA/MSA administrator, bank, or an insurance company) in which you can save money exclusively for future medical expenses.*

Who is eligible to open an Archer MSA?

To qualify for an Archer MSA, you must be either (1) an employee, or spouse of an employee, of a small employer (50 of fewer employees) that maintains a self-only or family high deductible health plan (HDHP) for you or your spouse, or (2) a self employed person, or spouse of a self employed person, who maintains a self-only or family HDHP.

What is an Archer MSA-eligible health plan?

Yes, if they're covered by a high-deductible health plan and not on Medicare. Beginning with the first month you are enrolled in Medicare, you cannot contribute to an Archer MSA. However, you may be eligible for a Medicare Advantage MSA.

So individuals can't contribute to an Archer MSA if they're on Medicare?

No, the law doesn't allow those on Medicare to contribute to an Archer MSA, but they may continue to own and use an Archer MSA if the account was opened before they went on Medicare.

Do members lose Archer MSA Funds at the end of the year?

No, any remaining funds roll over into the following year and grow tax-free.

Does an Archer MSA earn interest?

Yes. Best of all, the interest accumulates tax-free.

Can Archer MSA funds be invested?

Yes, in stocks, bonds, mutual funds, CDs, and annuities.

Which individuals benefit most from Archer MSAs?

Archer MSAs are not just for the health or the wealthy. Archer MSAs and qualified high-deductible health plans can work for anyone, regardless of their income or the state of their health. Archer MSAs are one of the best financial vehicles to save for retirement and pay for medical expenses in the meantime.

What happens if you no longer have an Archer MSA-eligible plan?

You keep your Archer MSA. It's always your money, but you can no longer make contributions to the account if you're not covered by an eligible health plan.

What occurs in the event the account holder dies?

Account holders should choose a beneficially when the account is set up. What happens to the Archer MSA depends on who is designated as the beneficiary.

An Archer MSA-eligible health plan is an HDHP that can be thought of as a "low premium" plan. The consumer is responsible for the first several thousand dollars in health care expenses. The Archer MSA is designated to cover those expenses. For self-only plans the minimum annual deductible is $1,900, with a maximum annual deductible of $2,850 and an max out-of-pocket of $3,750. For family plans the minimum annual deductible is $3,750, with a maximum annual deductible of $5,650 and a max out-of-pocket of $6,900.

What are the contribution limits on an Archer MSA?

There are two limits on the amount you or your employer can contribute to your Archer MSA:

The annual decutible limit. You can contribute up to 75% of the annual deductible of the family HDHP and 65% if it a self-only plan.

An income limit. You cannot contribute more than what you earned for the year from the employer who sponsors your HDHP. For someone who is self-employed, he/she cannot contribute more than his/her new self-employment income.

Who can contribute to an Archer MSA?

Your qualified employer can make contributions to the Archer MSA. (Taxes are not paid on these contributions.) if your employer does not make contributions to an Archer MSA, or you are self-employed, you can make your own contributions to the MSA. Note: both you and your employer cannot make contributions to an Archer MSA in the same year. You do not have to make contributions to your Archer MSA every year. If you no longer qualify to make contributions, you can still recieve tax-free distributions to pay or reimburse your qualified medical expenses.

How does an Archer MSA work?

You can use the account to make payments for qualified healthcare expenses. An Archer MSA is generally exempt from tax. You are permitted to take a distribution from your Archer MSA at any time; however, only those amounts used exclusively to pay for qualified medical expenses are tax-free. Amounts that remain at the end of the year are generally carried over to the next year. Earnings on amounts in an Archer MSA are not included on your income while held in the Archer MSA.

Who owns the Archer MSA?

You own the account, regardless of who makes the contributions.

What happens to the Archer MSA funds if the owner changes jobs or retires?

If you change employers, your Archer MSA moves with you. However, you may not make additional contributions unless you are otherwise eligible. The account still belongs to the owner.

What can an Archer MSA be used to pay for?

See IRS Publication 502 for a list of qualified medical and dental expenses.

Can an Archer MSA ever be used to pay for non-qualified expenses?

Once the member reaches age 65, the funds can be used for non-qualified expenses. There is no additional tax on distributions made after the date you are disabled, reach age 65, or die. If the funds are used before age 65 for non-qualified expenses, the amount used will be taxed and incur a 10 percent penalty.

Can retirees contribute to an Archer MSA?

So individuals can't contribute to an Archer MSA if they're on Medicare?

No, the law doesn't allow those on Medicare to contribute to an Archer MSA, but they may continue to own and use an Archer MSA if the account was opened before they went on Medicare.

Do members lose Archer MSA funds at the end of the year?

No, any remaining funds roll over into the following year and grow tax-free.

Does an Archer MSA earn interest?

Yes. Best of all, the interest accumulates tax-free.

Can Archer MSA funds be invested?

Yes, in stocks, bonds, mutual funds, CDs, and annuities.

Which individuals benefit most from Archer MSAs?

Archer MSAs are not just for the healthy or the wealthy. Archer MSAs and qualified high-deductible health plans can work for anyone, regardless of their income or the state of their health. Archer MSAs are one of the best financial vehicles to save for retirement and pay for medical expenses in the meantime.

What happens if you no longer have an Archer MSA-eligible plan?

You keep your Archer MSA. It's always your money. But you can no longer make contributions to your Archer MSA if you're not with an Archer MSA-eligible health plan.

What occurs in the event of death of the Archer MSA holder?

You should choose a beneficiary when you set up your Archer MSA. What happens to your Archer MSA when you die depends on whom you designate as the beneficiary. If your spouse is the designated beneficiary of your Archer MSA, it will be treated as your spouse's Archer MSA after your death.

*HealthEquity does not provide medical or tax advice. Content should not in any case replace professional medical or tax advice. If you have questions regarding a medical condition, please consult a qualified healthcare professional. All tax references are on the federal level. State taxes may vary. Please consult your tax advisor.

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To qualify for an Archer MSA, you must be either (1) an employee, or spouse of an employee, of a small employer (50 of fewer employees) that maintains a self-only or family high deductible health plan (HDHP) for you or your spouse, or (2) a self employed person, or spouse of a self employed person, who maintains a self-only or family HDHP. What is an Archer MSA-eligible health plan? Yes, if they're covered by a high-deductible health plan and not on Medicare. Beginning with the first month you are enrolled in Medicare, you cannot contribute to an Archer MSA. However, you may be eligible for a Medicare Advantage MSA. So individuals can't contribute to an Archer MSA if they're on Medicare? No, the law doesn't allow those on Medicare to contribute to an Archer MSA, but they may continue to own and use an Archer MSA if the account was opened before they went on Medicare. Do members lose Archer MSA Funds at the end of the year? No, any remaining funds roll over into the following year and grow tax-free. Does an Archer MSA earn interest? Yes. Best of all, the interest accumulates tax-free. Can Archer MSA funds be invested? Yes, in stocks, bonds, mutual funds, CDs, and annuities. Which individuals benefit most from Archer MSAs? Archer MSAs are not just for the health or the wealthy. Archer MSAs and qualified high-deductible health plans can work for anyone, regardless of their income or the state of their health. Archer MSAs are one of the best financial vehicles to save for retirement and pay for medical expenses in the meantime. What happens if you no longer have an Archer MSA-eligible plan? You keep your Archer MSA. It's always your money, but you can no longer make contributions to the account if you're not covered by an eligible health plan. What occurs in the event the account holder dies? Account holders should choose a beneficially when the account is set up. What happens to the Archer MSA depends on who is designated as the beneficiary. An Archer MSA-eligible health plan is an HDHP that can be thought of as a "low premium" plan. The consumer is responsible for the first several thousand dollars in health care expenses. The Archer MSA is designated to cover those expenses. For self-only plans the minimum annual deductible is $1,900, with a maximum annual deductible of $2,850 and an max out-of-pocket of $3,750. For family plans the minimum annual deductible is $3,750, with a maximum annual deductible of $5,650 and a max out-of-pocket of $6,900. What are the contribution limits on an Archer MSA? There are two limits on the amount you or your employer can contribute to your Archer MSA: The annual decutible limit. You can contribute up to 75% of the annual deductible of the family HDHP and 65% if it a self-only plan. An income limit. You cannot contribute more than what you earned for the year from the employer who sponsors your HDHP. For someone who is self-employed, he/she cannot contribute more than his/her new self-employment income. Who can contribute to an Archer MSA? Your qualified employer can make contributions to the Archer MSA. (Taxes are not paid on these contributions.) if your employer does not make contributions to an Archer MSA, or you are self-employed, you can make your own contributions to the MSA. Note: both you and your employer cannot make contributions to an Archer MSA in the same year. You do not have to make contributions to your Archer MSA every year. If you no longer qualify to make contributions, you can still recieve tax-free distributions to pay or reimburse your qualified medical expenses. How does an Archer MSA work? You can use the account to make payments for qualified healthcare expenses. An Archer MSA is generally exempt from tax. You are permitted to take a distribution from your Archer MSA at any time; however, only those amounts used exclusively to pay for qualified medical expenses are tax-free. Amounts that remain at the end of the year are generally carried over to the next year. Earnings on amounts in an Archer MSA are not included on your income while held in the Archer MSA. Who owns the Archer MSA? You own the account, regardless of who makes the contributions. What happens to the Archer MSA funds if the owner changes jobs or retires? If you change employers, your Archer MSA moves with you. However, you may not make additional contributions unless you are otherwise eligible. The account still belongs to the owner. What can an Archer MSA be used to pay for? See IRS Publication 502 for a list of qualified medical and dental expenses. Can an Archer MSA ever be used to pay for non-qualified expenses? Once the member reaches age 65, the funds can be used for non-qualified expenses. There is no additional tax on distributions made after the date you are disabled, reach age 65, or die. If the funds are used before age 65 for non-qualified expenses, the amount used will be taxed and incur a 10 percent penalty. Can retirees contribute to an Archer MSA? Yes, if they're covered by a high-deductible health plan and not on Medicare. Beginning with the first month you are enrolled in Medicare, you cannot contribute to an Archer MSA. However, you may be eligible for a Medicare Advantage MSA. So individuals can't contribute to an Archer MSA if they're on Medicare? No, the law doesn't allow those on Medicare to contribute to an Archer MSA, but they may continue to own and use an Archer MSA if the account was opened before they went on Medicare. Do members lose Archer MSA funds at the end of the year? No, any remaining funds roll over into the following year and grow tax-free. Does an Archer MSA earn interest? Yes. Best of all, the interest accumulates tax-free. Can Archer MSA funds be invested? Yes, in stocks, bonds, mutual funds, CDs, and annuities. Which individuals benefit most from Archer MSAs? Archer MSAs are not just for the healthy or the wealthy. Archer MSAs and qualified high-deductible health plans can work for anyone, regardless of their income or the state of their health. Archer MSAs are one of the best financial vehicles to save for retirement and pay for medical expenses in the meantime. What happens if you no longer have an Archer MSA-eligible plan? You keep your Archer MSA. It's always your money. But you can no longer make contributions to your Archer MSA if you're not with an Archer MSA-eligible health plan. What occurs in the event of death of the Archer MSA holder? You should choose a beneficiary when you set up your Archer MSA. What happens to your Archer MSA when you die depends on whom you designate as the beneficiary. If your spouse is the designated beneficiary of your Archer MSA, it will be treated as your spouse's Archer MSA after your death. *HealthEquity does not provide medical or tax advice. Content should not in any case replace professional medical or tax advice. If you have questions regarding a medical condition, please consult a qualified healthcare professional. All tax references are on the federal level. State taxes may vary. Please consult your tax advisor.