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Archer Medical Savings Account (MSA)

Archer MSAs are tax-exempt trusts or custodial accounts set up with a U.S. financial institution that allow taxpayers who are self-employed and employees of certain small employers to save money for future medical expenses and those of their spouse and dependents.

There are several tax advantages to having an Archer MSA:

  • Contributions to Archer MSAs are tax deductible, even if you choose not to itemize deductions.
  • Interest and other earnings from Archer MSAs are tax free.
  • Distributions are also tax free, provided they are used for qualified medical expenses.


  • Archer MSAs are only available to a limited number of people, including self-employed individuals, or their spouses, who maintain a self-only or family high-deductible health plan, and employees, or their spouses, of a small employer - one with an average of 50 or fewer employees over the last 2 years - who maintain a self-only or family high-deductible health plan.