In which way does the federal form of government treat the Archer Medical Savings Account for tax purposes?
If you withdraw the funds from MSA, it can be rolled over to HSA within two months. These roll over are of two types: one is Trustee to Trustee and another is Actual roll over. Funds can be transferred from the old MSA Trustee to the new HSA Trustee directly in the Trustee to Trustee roll over. A roll over means, the funds were to be distributed to the participant but in this case the participant does not touch the money, so it is not counted as a roll over. This roll over is not needed to be tax maintaining. In the case of Actual roll-over, it happens when the Trustee transfer the MSA amount directly to the participant. And the assets must be transferred to the new Trustee within a couple of month after the receipt of the distribution. If the person misses the two months deadline, an IRS reporting requirement and potential tax penalties will be imposed. Individuals are allowed to transfer one MSA to HSA within one year duration. Additionally, roll-over of assets within the previous ye
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