J.K. Lasser's Your Income Tax 2013: For Preparing Your 2012 Tax Return

41.13 Archer MSAs

Archer MSAs (medical savings accounts) have largely been replaced by health savings accounts (HSAs) (12.9). The law authorizing the establishment of new Archer MSAs has expired. However, taxpayers who set up Archer MSAs before 2008 can continue to fund them.

An Archer MSA can be rolled over to an HSA. Contributions may not be made to an Archer MSA or to an HSA after you become entitled to Medicare benefits.

For 2012, a high-deductible health plan for self-only coverage must have a deductible of at least $2,100 and no more than $3,150. For family coverage, the deductible must be at least $4,200 and no more than $6,300. The high-deductible plan must limit out-of-pocket costs (other than premiums) for 2012 to $4,200 for self-only coverage and $7,650 for family coverage. You generally may not have any other coverage in addition to the high-deductible plan, but separate policies are allowed for disability, vision or dental care, long-term care, accidental injuries, specific diseases or illnesses, fixed payments during hospitalization, workers’ compensation liability, tort liability, and liabilities arising from the ownership or use of property.

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Caution

Employer Contribution to Spouse’s MSA

If you and your spouse are covered under a high-deductible health plan with family coverage, employer contributions to either of your Archer MSAs bar both ...