Self-employed, employed, unemployed? Cover qualified medical expenses with tax benefits.
Medical Savings Accounts
In the United States, a medical savings account refers to a medical savings account program, generally associated with self-employed individuals, in which tax-deferred deposits can be made for medical expenses. Withdrawals from the MSA are tax-free if used to pay for qualified medical expenses. MSA account funds can cover expenses related to most forms of health care, disability, dental care, vision care, and long-term care, whether the expenses were billed through the qualifying insurance or otherwise.
Like an HSA, MSAs have tax benefits. The benefits include:
- Tax deductions for contributions you make
- Tax-free interest or other earnings
- Tax-free distributed money, if used for qualifying medical expenses
- Year-to-year rollovers for any contributions you make
- The MSA moves with you when you leave your employer or retire.
Like HSAs, MSAs have a limit on how much you can contribute each year without facing a penalty. However, MSAs are much more restrictive in how much and who can contribute. There’s an annual limit to contributions, as well as an income limit.
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Coughlin Insurance Services, Inc.
178 Myrtle Boulevard, Floor 2, Larchmont, NY 10538
Toll Free : (800) 542-0661
Tel: (914) 834-1234 Tel: (212) 593-0200