MSAs AND HSAS
01.Core Concepts
Health Savings Account (HSAs) Archer Medical Savings Accounts (MSAs) Available beginning in 2006. Can be established by employer or employee Established 1996-2005 by employers with 50 or fewer employees Must have high-deductible health insurance plan Must have high-deductible health insurance plan • Contributions by employer or employee (in 2026) • Not greater than $4,400 for individuals, $8,750 for family • Contributions by employer and employee • Max 65% of the deductible for individual, 75% for family Distributions before 65 not used for medical expenses taxable, plus 20% penalty applies Distributions before 65 not used for medical expenses are taxable, plus a 20% penalty applies