Medical Savings Accounts
Medical Savings Accounts (MSAs) are tax-deferred saving and investment accounts designed to be combined with high-deductible health-insurance plans. Deductibles for individual policies must be $1600 to $2400. You make contributions now that will be invested through the account in investments you choose. These contributions are deductible on your federal tax return. When medical expenses arise, you may withdraw the funds tax-free. You are eligible for an MSA if you are self-employed, work for a small business, uninsured, and too young for Medicare. There are annual contribution limits to an MSA. For more general information on MSAs, consult your tax advisor.