Archer Medical Savings Accounts are similar to Health Savings Accounts in that they allow eligible individuals to save for, and pay, health care expenses on a tax-free basis. An Archer MSA is a tax-exempt trust or custodial account that you set up with a U.S. financial institution, such as a bank or an insurance company, in which you can save money exclusively for future medical expenses.
After December 31, 2007, no individual can be considered an eligible individual for Archer MSA purposes unless:
- You were an active participant for any tax year ending before January 1, 2008, or
- You became an active participant for a tax year ending after December 31, 2007, by reason of coverage under a high deductible health plan (HDHP) of an Archer MSA participating employer.
To enter a Medical Savings Account Deduction in the tax program, from the Main Menu of the Tax Return (Form 1040) select:
- Adjustments Menu
- Medical Savings Account Deduction (8853)
NOTE: This is a guide to entering the Medical Savings Account Deduction into the TaxSlayer Pro program. This is not intended as tax advice.