Archer Medical Savings Accounts are individual accounts that may
be set up by self-employed individuals and those who work for
small businesses (less than 50 employees). To set up an Archer
medical savings account, you must be covered by a high-deductible
health plan. Either the employee or the employer may contribute to
an Archer account, but both cannot contribute to the account in
the same year.
Individuals control the use of funds in Archer medical savings
accounts and can withdraw funds for qualified medical expenses.
You can roll over funds from year to year, and balances in Archer
medical savings accounts are portable. This means you can take
them with you when you change jobs or retire.
Health flexible spending arrangements can be offered in conjunction with any type of health insurance plan, or they can be offered on a stand-alone basis. In the past, health flexible spending
arrangements were subject to a use-it-or-lose-it rule. Now, employers may give employees a 2-1/2 month grace period at the end of the plan year to use up funds in the account. After that time,
remaining funds from the previous plan year are forfeited. If you have a flexible health spending arrangement, you should try to anticipate your health care expenses for the coming year to avoid
losing any money that you contribute and don’t spend.
