Definition of medical savings account
- Medical savings account (MSA) is a term that can be regarded to any of tax-benefitted arrangements approved since the early 1990s. Under the Internal Revenue Code in the early 1990s, there are specific types of medical savings accounts that were authorized and regulated.
- Medical savings account is the type of account that is included within a health savings account (HSA).
- In a business employers can sometimes help their employees pay the expenses of medical treatments. This is by providing health reimbursement arrangements (HRAs) or flexible spending arrangements (FSAs).
- Contributions from the employee, employer, or both can contribute to employee HSAs.