MSA's are a pilot
program of the IRS and have been for a number of years. It is our opinion
that they'll continue to be around for some time. The important thing is that once you
set up an MSA, it is set up and can't go away. Be careful with the
information you read on the web about MSAs - we've found a lot of incorrect data
out there. The IRS site is absolutely the law, so it will always be a safe
place to get information:
http://www.irs.gov/pub/irs-pdf/p969.pdf
There are two things you need
to do (a good agent can handle both for you):
1) Choose an MSA
compliant plan
2) Set up a tax-free
savings account that you can use to pay your eligible medical and dental
expenses. For a complete list of these expenses, see
www.irs.gov/pub/irs-pdf/p502.pdf. You cannot pay your MSA plan premium
from this savings account.
Each month you will:
1) Pay your premium
(remember, this will be up to 40% lower because you are in a higher deductible
plan).
2) Add money to your
savings account. This step is optional, if you choose to do this, you
reduce the taxes you pay. Most companies have both checks and a debit card
that you can use to access your money.
