Family Office Definition: Medical Savings Account
Medical Savings Account definition: A medical savings account (also called Archer MSA) is a tax-exempt savings vehicle for medical expenses for self-employed individuals (or small business or family business employees). Money contributed to the account is income tax deductible. (See IRS limits for annual contribution amounts. Excess contributions are subject to additional excise taxes.) Earnings and withdrawals for qualified medical expenses are not taxed. Beneficiaries are named for medical savings accounts, and spouses are not taxed when they receive an MSA as the beneficiary after a death. All non-spouse beneficiaries are taxed when receiving an MSA. There are specific criteria to be eligible for an MSA, including no other medical coverage except for a high-deductible health plan and employee of a small business.
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