An Archer medical savings account (MSA) is a tax-exempt trust or
custodial account in which you save money exclusively for future
medical expenses. It must be established with a U.S. financial
Contributions to your Archer MSA qualify for a deduction on your
tax return, even if you do not itemize deductions.
Contributions and distributions are reported on Form 8853 and
attached to your Form 1040.
The deduction is limited based on whether the coverage is for an
individual or a family. The 2012 limits are:
Qualified medical expenses are the same expenses that qualify
for the Medical and Dental
Deduction and are incurred by:
You cannot deduct qualified medical expenses as an itemized
deduction if the expenses are paid with a tax-free distribution
from your Archer MSA.
For more information, see IRS