Highlighted Differences between HSAs and MSAs
Lower Deductibles
In HSAs, insurance plans with deductibles of $1,000 for individuals
and $2,000 for families are eligible. In MSAs, it is $1,700 and
$3,450 respectively.
Larger Contributions Allowed
HSAs allow contributions of 100% of the full deductible up to a
limit of $2,250 for individuals and $4,500 for family coverage.
MSAs allow for 65 percent of individual’s health insurance
deductible and 75 percent for family’s.
More Employers Eligible
HSAs are for all employers. MSAs are only for small employers of
50 employees or less.
More Flexible Contributions
HSAs can be funded by employer and/or employee contributions. MSAs
had to be only one or the other.
Lower Excise Taxes
HSAs apply an excise tax of 10% for non-health distributions made
before death, disability or age 65. The penalty is 15% for MSAs.