This plan for the self-employed essentially exists to fund a tax exempt account for medical expenses incurred before an associated 'high deductible' insurance plan begins to cover those expenses. This allows the self-employed to buy a "catastrophic" insurance plan at much lower monthly premiums, and still cover medical expenses out of their personal MSA account with tax exempt contributions the individual account holder made to that account. The risk is that an MSA account holder may find that their medical expenses out strip the contributions they can afford to make. The advantage is that you can invest any money added to the account, so accumulated amounts contributed over the deductible level may grow tax free. This account may be convertible into a standard IRA savings plan after a specified age threshold is reached.

You can treat premiums for your long-term care coverage, health care coverage while you receive unemployment benefits, or your health care continuation coverage, required under any federal law, as qualified medical expenses which can be paid out of your Archer MSA.

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