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

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This document was last modified on July 26, 1999

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