My Employer Gives Its Employees Each A Medical Savings Account To Pay For Health Insurance. What Can I Do With This Fund?
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UPDATED: Jul 16, 2021
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While technically not a health insurance plan, some employers provide their employees with an annual amount placed into an account earmarked to help the employee take care of his or her health care expenses. For example, an employer may place $2,500 into an account for the employee to use for their health care needs. The employee may draw on the account to buy health care insurance or pay policy deductibles, co-payments or medical expenses not covered by his or her health insurance policy. In addition, the employee may periodically withdraw money from the MSA, but there may be tax implications if used for non-eligible health care expenses.
The main advantage of an MSA is that you will not pay income taxes on any money put in the account.