Do I Have a HSA or MSA? - Understanding Health Savings Accounts

Your health savings account (HSA) or medical savings account (MSA) is an important tool in managing your healthcare expenses. If you're unsure whether you have an HSA or MSA, here are some key points to help you differentiate between the two:

HSAs and MSAs are both tax-advantaged accounts that allow you to save money for qualified medical expenses, but there are specific differences between them:

• Eligibility: HSAs are available to individuals with high deductible health plans (HDHP), while MSAs are typically associated with Medicare beneficiaries.
• Contributions: Both you and your employer can contribute to an HSA, whereas MSAs are usually funded by employers.
• Roll Over: HSA funds roll over from year to year and are yours to keep, whereas MSA funds may have a
  

  Your health savings account (HSA) or medical savings account (MSA) is an essential financial tool for managing healthcare costs. If you're trying to figure out whether you have an HSA or MSA, keep reading for some crucial differences that can help clarify your situation.

  Understanding HSAs and MSAs: While both HSAs and MSAs serve similar purposes by allowing you to put aside money for medical expenses, they cater to different audiences and regulations.

  • Eligibility: HSAs are specifically designed for individuals who are enrolled in high deductible health plans (HDHPs), while MSAs are generally associated with individuals enrolled in Medicare.
  • Contributions: With HSAs, both you and your employer can contribute to the account, providing flexibility in how you save. However, MSAs are mostly funded by employers, which limits your contribution options.
  • Roll Over: One of the most appealing features of HSAs is that any unused funds can roll over year after year, making it a great long-term savings strategy. In contrast, any leftover MSA funds may not roll over and could be lost if not used in a certain timeframe.