Idaho Medical Savings Account
An Idaho Medical Savings Account (MSA) allows you to save for medical expenses while reducing the amount of Idaho income tax you owe. An Idaho MSA is an excellent option when you have a health insurance plan that does not have a high deductible, but still want the tax benefits and flexible options associated with a federal HSA.
- Summary
- Customizable Home Federal MSA options
- No initial setup fee
- Contributions are Idaho state tax deductible
- Interest grows tax-free
- Withdrawals are tax-free when used for qualified medical expenses
- No minimum balance to open
- Money invested carries over year to year
NOTE: These deductions can only be taken on your Idaho state income tax return; they do not apply to federal returns. Similarly, customers with a federal HSA cannot claim the Idaho MSA tax deduction.
- More Info
- Annual contribution limit is $2,000 a year, or $4,000 if married filing jointly
- Reimbursements that are re-deposited into the MSA are not considered contributions
- Contributions and interest earned are tax deductible
- Qualified medical expenses do include vision, dental, and nursing home costs
- Any withdrawals not used for qualified medical expenses are subject to tax
- If you are under 59½, funds withdrawn for non-eligible medical expenses are subject to a 10% penalty
