Archer Medical Savings Accounts

Medical-savings limits increased

Taxpayers who fund their own health plans now have higher annual deductibles and out-of-pocket limits.

For Archer medical savings account for 2007, the minimum annual deductible of a high-deductible health plan is $1,900 a single taxpayer and $3,750 for family coverage. The amounts are up from $1,800 and $3,650, respectively.

The maximum annual deductible of a high-deductible health plan has increased to $2,850 for singles and $5,650 for family coverage. The maximum out-of-pocket expenses limit has increased to $3,750 and 6,900.

That's up from a 2006 maximum annual deductible $2,700 for singles and $5,450 for families. The maximum out-of-pocket expenses limit in 2006 was $3,650 and $6,650.

In an Archer MSA, you make contributions to a tax-free account. Withdrawals are tax-free if used to pay for qualified medical expenses. In addition, the account must be tied to a high-deductible health plan.

Published Dec. 6, 2007

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