Any money left in the MSA at the end of the year is the participant's to keep - unlike standard coverage where the insurer or managed care company retains all funds not used to pay medical claims. With a MSA, the plan participant decides which doctor to visit, whether to see a specialist or whether to use a brand name or generic prescription, without the need for a physician referral. MSA plan participants have complete freedom to seek the treatment they need, and they maintain control over how much to pay for their medical care. Since MSA funds accumulate by compounding tax-free over time, the vast majority of MSA plan participants will have substantial funds left over at retirement. Funds invested in MSAs draw interest or may be placed into investment options until needed for medical expenses.
Unused funds can accumulate in the account from year to year.
Money in your MSA grows tax deferred. MSA money can be used for qualified medical expenses tax-free for life. At age 65 unused MSA money can be withdrawn for non-medical reasons without penalty. MSAs put people back in control of their healthcare - and they reap the rewards. MSAs empower plan members to make their own healthcare choices, and, in turn, provide long-term protection and satisfaction for them and their families.