The first thing you should know: "MSA" stands for "medical savings account." The second thing you should know: it has to do with taxes.
In case you haven't put it together from that information, the Archer MSA allows a person (or a company) to save money for medical expenses without paying taxes on the interest earned.
Basically, an Archer MSA provides a tax-efficient way to save for health care. It was proposed by a congressman named Bill Archer, who spearheaded its creation (and eventually gave the accounts a name). The interest on the accounts accumulates without incurring taxes, much like certain retirement accounts, like IRAs. The downside is that the money has to be used for healthcare. Other uses could lead to penalties and taxes.
Now let's make up some other potential definitions of Archer MSA. In archery, it could represent a statistic for when someone tries firing multiple arrows at the same time ("Archer Multiple Shot Attempts"). In architecture, it could represent when construction companies give arch designers additional funds to use materials other than marble ("Archer Marble Substitution Allotment").
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Finance: What is Tax Basis?8 Views
Finance allah shmoop What is tax basis Well your basis
is your cost Your costs for assessing how much you
owe when the tax man coming you bought a thousand
shares of whatever dot com at twelve bucks a share
in its eye po and huzzah Three years later the
stock is at thirty You decide whatever dot com is
now passe because a kardashians said so it'll be over
taken by whenever dot com and you want to sell
So you dio and you live in a thirty percent
marginal tax blue state And that is your federal tax
rates in twenty percent But then you add in ten
percent for state taxes and whatever's left for obamacare and
you pay about thirty percent tax on your gains Well
you paid twelve grand to buy the stock and after
the sale you took in thirty grand when you sold
it for a gain of eighteen thousand dollars Your tax
basis on those shares is twelve grand so you pay
thirty percent tax on the eighteen grand of gain or
fifty four hundred dollars to net from the sale of
thirty thousand dollars worth of stock How much Yeah twenty
Four thousand six hundred dollars He fancy math Had you
just gotten those shares free I'ii they were gifted to
you and you had no tax basis or a tax
basis of zero dollars a share Well then your gain
would have been from zero to thirty grand or a
gain of thirty thousand dollars to then be taxed at
thirty percent or nine grand in taxes to net just
twenty one thousand dollars after the sale So having ah
high tax basis or at least being able teo point
toe one saves you money when the tax man coming
and well that's pretty much it alright he's gone Now
you can all come out Come on it's Okay it's 00:01:53.698 --> [endTime] safe
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