Question

Mr. Chen has heard about a Medical Savings Account (MSA), but wants to know if it is just about saving money, or if he will get insurance coverage for his health care expenditures as well.

Answer 1

A medical savings account (MSA) refers to a medical savings account program, generally associated with self-employed individuals, in which tax-deferred deposits can be made for medical expenses. Withdrawals from the MSA are tax-free if used to pay for qualified medical expenses.

Step-by-step explanation:

Mr. Chen, Medical Savings Account, MSA does not involve insurance coverage. It covers only medical expenses.