Medical savings account

A medical savings account (MSA) is an account into which tax-deferred amounts from income can be deposited. These amounts are often called contributions; they may be made by a worker, an employer, or both, depending on a country's laws.

The money in such accounts is expected be used to pay for medical expenses. Withdrawals from the account often called distributions, if made for that reason, may or may not be subject to income tax. Withdrawals without adequate documentation of use for medical expenses are subject to penalties.