What sets Archer Medical Savings Accounts (MSAs) apart from HSAs?

The distinction between Archer Medical Savings Accounts (MSAs) and Health Savings Accounts (HSAs) primarily lies in their contribution limits and minimum annual deductibles. Archer MSAs have specific requirements that set them apart, including lower contribution limits compared to HSAs and different stipulations regarding deductibles. For instance, MSAs generally require a higher deductible on the health insurance plan associated with them compared to the requirements for HSAs.

This means that the amounts that can be contributed to each type of account differ, directly impacting how individuals and families can save for medical expenses. Understanding these differences is crucial for individuals when deciding between these two types of accounts, especially when considering their healthcare needs and financial planning for medical expenses.