Medical Savings Account (MSA)

Savings accounts designated for out-of-pocket medical expenses. In an MSA, employers and individuals are allowed to contribute to a savings account on a pre-tax basis and carry over the unused fUn4is at the end of the year. One major difference between a Flexible Spending Account (FSM and a Medical Savings Account is the ability under an MSA to carry over the unused funds for use in a future year. instead of losing unused funds at the end of the year. Most MSAs allow unused balances and earnings to accumulate.


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