MSA or HSA: Can I Keep My MSA Or Do I Need to Convert it into an HSA?
Author: Daryl Kulak
The Medical Savings Account (MSA) is an older form of the Health Savings Account (HSA).
You cannot open a new MSA. You cannot contribute additional money into your MSA.
However, you can keep your MSA as long as you like. When you retire, it will automatically turn into an Individual Retirement Account (IRA) and you can withdraw money from it then for any reason (not just medical).
Or, if you don't want to keep your MSA, you can roll it into your HSA.
Why would anyone want to keep their MSA?
I can think of only one circumstance. My wife and I have kept our MSA because our HSA custodian does not offer very good investment options yet in their HSAs. T...
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