Archer MSAs and Long-Term Care Insurance Contracts, Form 8853 (2023)

Archer Medical Savings Accounts (MSAs) are like special savings accounts for health expenses, meant for people with high-deductible health plans. Form 8853 is a tax form that helps you report contributions, deductions, and withdrawals from these accounts, along with any money you got from long-term care insurance.

Who Needs It?

If you put money into an Archer MSA in 2023, or if you got money out, or if you have a specific type of insurance payment, you'll need to use Form 8853.

Key Points:

  • Contributions Limit: After 2007, you can't put unlimited money in unless you meet special conditions.
  • Why Fill it Out? To report the money you put in (contributions), the money you take out (distributions), and any taxable payments from certain types of insurance.

When to Use It?

  • If you or your employer put money into an Archer MSA in 2023.
  • If you got money out of an Archer MSA in 2023.
  • If you got certain types of insurance payments.
  • If you inherited an Archer MSA.

Who Qualifies?

You must be a small business employee or self-employed, have a certain type of health insurance, and not be on Medicare.

    Understanding Deductions:

    • There are limits to how much money you can take off your taxes for Archer MSA contributions.
    • If your employer puts money in, you might not get a deduction.

    In a Nutshell: Form 8853 helps you keep track of your health savings account (Archer MSA) and makes sure you follow the rules. It's a way to tell the IRS about the money you put in, took out, or got from certain insurance.

    For the current year's Form 8853, click here.