If you currently have an Archer Medical Savings Account, you can roll it into a Health Savings Account tax-free.
Benefits can be:
Interest or other earnings are tax free
You can claim a tax deduction for contributions you make even if you do not itemize
Distributions may be tax-free if you pay qualified medical expenses
Contributions remain in your account until you use them
The plan stays with you if you change employers or leave the work force
To qualify, you must meet the following requirements:
You are an employee (or spouse of an employee) of an employer who maintains a High Deductible Health Plan.
You are self-employed (or a spouse of someone self-employed) who maintains a High Deductible Health Plan.
You have no other health insurance or Medicare coverage except what is permitted.
You can make contributions to your Health Savings Account for a given year up until the income tax filing deadline in April of the following year.
This information is good for all years of UltimateTax.