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MEDICAL SAVINGS ACCOUNTS MSA’s ERISA APPLICATION The application of ERISA to an Archer MSA, particularly one funded with employer contributions is currently unclear. Treatment as an ERISA plan, or part of an ERISA plan, may entail reporting requirements for the employer and also potential fiduciary issues. In Notice 96-53, the Service analogized MSAs to IRAs. The Department of Labor’s view on IRAs is that an employer who simply provides employees with the opportunity for making contributions to an IRA through payroll deductions does not thereby establish a “pension plan” within the meaning of ERISA. However, if an employer endorses an IRA, as determined by all the facts and circumstances, the IRA may constitute an ERISA plan. ERISA Interpretive Bulletin 99-1(DOL. Reg. § 2510.3-2(d)). EFFECTIVE DATE/CUT-OFF DATE Effective Date: December 21, 2000 (for Archer MSAs), P.L. 106-554, and January 1, 1997 (for Medical Savings Accounts), P.L. 104-191. Cut-off Date: December 31, 2003. Note: While not entirely clear, the legislative history of the Act suggests that individuals with established Archer MSAs may be able to continue to contribute to their Archer MSAs, and that employers who have established Archer MSA plans for their employees by December 31, 2003 may be able to permit employees to establish Archer MSA accounts after the cut-off date even if the employees never had such an account previously. IRC § 220(i). | ||
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