Medical Savings Account (MSA) Law and Legal Definition
Medical Savings Account (MSA) means a savings account that is combined with health insurance plans for the benefit of the employee, to get tax advantages. It is an employer sponsored account. It is mainly established for the purpose of paying medical expenses in partnership with high-deductible health care plan. The contributions made by employer and employee to MSA are used to pay medical expenses not covered by health insurance plan. Undisturbed funds in MSA will be given to employee when s/he reaches the retirement age. Accumulated funds under MSA will be assigned to employee's retirement income.
MSA is the former name of health savings account (HSA) in the U.S. In the United States, MSA refers to an American medical savings account program, in which an individual can use the deposits made to MSA, whose tax payment is postponed to a later date for meeting the medical expenses. The program mainly covers self-employed individuals. Withdrawals made from MSA for paying medical expenses are exempted from taxable income. To get tax exemption MSA must be coupled with a high-deductible health plan (HDHP).
Legal Definition list
- Medical Savings Account (MSA)
- Medical Review Officer (MRO)
- Medical Research [Internal Revenue]
- Medical Records
- Medical Practice Facility [Banks & Banking]
- Medical Savings Account Plan (MSA Plan)
- Medical Services [Employee Compensation]
- Medical Standard Mileage Rate
- Medical Supplies
- Medical Support Services [Employee Compensation]
- Medical Treatment [Transportation]