Health Savings Accounts

MSA are also known as "Archer medical savings accounts" or "Archer MSAs." A medical plan combining high-deductible medical insurance protection with a tax-deferred savings account that can be offered by employers as part of a benefits package. Participants pay healthcare expenses from this account up to the amount of the insurance deductible. Archer MSAs cannot be established after 2007 and have been replaced by health savings accounts (HSAs), which were introduced in 2003. MSAs already established can continue to accept new contributions. MSAs can also be rolled over into HSAs, but no new contributions can be made once the account holder becomes eligible for Medicare.

A person has until the 1040 filing deadline without extensions. For tax year 2013 the date is April 15, 2014.

Report contributions to your Archer MSA on Form 8853.

HSA holders can choose to save up to $3,250 for an individual and $6,450 for a family (HSA holders 55 and older get to save an extra $1,000 which means $4,250 for an individual and $7,450 for a family) - and these contributions are 100% tax deductible from gross income.
Minimum annual deductibles are $1,250 for self-only coverage or $2,500 for family coverage.
Annual out-of-pocket expenses (deductibles, co-payments and other amounts, but not premiums) cannot exceed $6,250 for self-only coverage and $12,500 for family coverage.

If the beneficiary is not the surviving spouse the account ceases to be a HSA as of the DOD of the owner and the value on the DOD must be included in the beneficiaries income.