Medical savings accounts MSA  

Medical savings accounts are savings accounts designated for out-of-pocket medical expenses which allow individual  to contribute to a savings account on a pre-tax basis and carry over the unused funds at the end of the year.

One major difference between a Flexible Spending Account (FSA) and a Medical Savings Account (MSA) is the ability under an MSA to carry over the unused funds for use in a future year, instead of losing unused funds at the end of the year. Most MSAs allow unused balances and earnings to accumulate. Unlike FSAs, most MSAs are combined with a high deductible or catastrophic health insurance plan.