Ark. Code R. 26-51-436 - 1(5) (1997) - Medical Savings Account (msa) - Defined

An MSA is a trust or custodial account that is created or organized in the United States exclusively for the purpose of paying the qualified medical expenses of an "account holder" (i.e., taxpayer) as well as the taxpayer's spouse and/or dependents. IRC Sec. 220(d)(1). The IRS has a MSA pilot program for employees of small businesses and self-employed persons. The accounts must be used in conjunction with "high deductible" health insurance. Participation is limited to the first 750,000 taxpayers utilizing MSAs each year for the tax years 1997 through 2000.