The Jacobs Company
Employee Benefit Plans & Services
Medical Savings Accounts

The Health Insurance Portability and Accountability Act of 1996 provides for a new type of savings account, designed to help individual taxpayers meet unreimbursed medical expenses on a tax favored basis.  This savings account, called a Medical Savings Account (MSA), is available only when used in conjunction with an employer sponsored, "high deductible" health insurance policy.

Initially, MSA accounts will be available on a test basis, for tax years 1997 through 2000.  Participation is limited nationally to no more than 750,000 individuals, either self-employed, or employed by a business with 50 or fewer employees.  If the 750,000 limit is reached, the IRS will announce a cutoff, after which no additional MSAs will be allowed.

Key Points about MSA's

Please refer to our Health Insurance Section as we are developing the Employee Benefits Section


This document was last modified on July 26, 1999

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