MSA or HSA: Can I Keep My MSA Or Do I Need to Convert it into an HSA?

The Medical Savings Account (MSA) is an aged word form of the Health Savings Account (HSA).

You cannot unfastened a new MSA. You cannot lend further money into your MSA.

However, you can maintain your MSA as long as you like. When you retire, it will automatically turn into an Individual Retirement Account (IRA) and you can retreat money from it then for any ground (not just medical).

Or, if you don’t desire to maintain your MSA, you can revolve it into your HSA.

Why would anyone desire to maintain their MSA?

I can believe of lone 1 circumstance. My married woman and I have got kept our MSA because our HSA keeper makes not offer very good investing options yet in their HSAs. They only have got a type of money market account for their HSA offerings. We desire to set money into common monetary fund accounts rather than money markets, but with their HSA product, we can’t do that yet, until they spread out the options.

For the most part, it will make perfect sense to revolve your MSA into an HSA. However, if you make up one's mind not to make that, it is your right to hang on to that MSA as long as you wish, and retire with that money or usage it for medical disbursals along the way.