We will now have an opportunity to save for medical expenses in a completely tax-free manner. Contributions to the Health Savings Account will be tax-deductable up to $2,250 per individuals or $4,500 per family. [Unfortunately, the HSA is the only good part of the new Medicare bill, which (big surprise) greatly increases government-spending.]

If you want more information on HSA's, MSA Bank's website provides an excellent resource center on HSA's -- with the latest news, and a summary of HSA's.

If you just want the low-down on HSA's, this summary provides a quick chart comparing them to MSA's and enumerating their features.

HSA's should provide an excellent way to save for possible medical expenses, and should provide a contingency plan -- if not another plan entirely -- to save for retirement.

I read that HSAs can be run through a cafeteria plan. The same is still not true for MSA's. Correct? Tx.

Not sure. What is a cafeteria plan?

A section 125 plan.

According to this link, Health Savings Accounts can be included in Cafeteria Plans.

I know HSAs can be worked through a cafeteria plan. What I am trying to find out is whether the MSA rules were also modified to allow them to be funded with cafeteria plan money. I do not think they were which would seem to make HSAs more attractive from that perspective.

FYI . . . this just came through on Benefitslink newsletter (re HSAs):

http://benefitslink.com/IRS/notice2004-2.pdf

mab - To answer your question, the rules on MSAs were not changed to permit them to be funded through a cafe plan. And, you can't establish a new MSA after this year and it doesn't appear likely that Congress is going to extend the deadline. HSAs will replace MSAs.