What is the difference between MSAs and HSAs?
• HSAs have significant advantages over MSAs, such as: • Everyone participating in a qualified HDHP is eligible to participate in HSAs. MSAs limit participation to self-employed individuals and employees of small employers only. • You, your employer, family members or anyone else may contribute to your HSA. The combined total from all contributors cannot exceed your maximum annual contribution. Only you OR your employer, not both, may make contributions to an MSA in the same year. • HSAs offer larger tax-free contribution limits. For an MSA, the tax-free portion is limited to 65% of the annual deductible for individual coverage and 75% of the annual deductible for family coverage.
