Form 8853: Archer MSA Basics

An Archer MSA is a medical savings account. It is set up to pay qualified medical expenses. Form 8853, Archer MSAs and Long-Term Care Insurance Contracts, is where you report contributions and withdrawals. The rules are narrower than for an HSA, and new Archer MSAs are rare. IRS: About Form 8853

Who can still contribute

The instructions say that after December 31, 2007, no contributions can be made to an Archer MSA for you. There are two exceptions. You were an active Archer MSA participant for a tax year ending before 2008. Or you became an active participant for a later year because of high deductible health plan coverage from an Archer MSA employer. IRS: Instructions for Form 8853 (2025)

Anyone who already has an account may still have to file Form 8853. Filing is required if contributions were made for 2025, or if you received certain long-term care insurance payments. IRS: Instructions for Form 8853 (2025)

Eligibility rules

To be eligible, you or your spouse must be an employee of a small employer, or be self-employed. A small employer had an average of 50 or fewer employees in either of the last two calendar years. You must also be covered by a high deductible health plan, with no other health coverage except permitted coverage. You cannot be enrolled in Medicare. You also cannot be someone else's dependent. IRS: Instructions for Form 8853 (2025)

The 2025 plan limits

The instructions list these 2025 high deductible plan figures. For self-only coverage, the minimum annual deductible is $2,850, and the maximum is $4,300. The maximum out-of-pocket expenses, other than premiums, are $5,700. For family coverage, the minimum deductible is $5,700, and the maximum is $8,550. The family out-of-pocket maximum is $10,500. IRS: Instructions for Form 8853 (2025)

How much can go in

Part I works out the contribution limit. For self-only coverage, the limit is 65% of the annual deductible. For family coverage, it is 75%. If you are married filing separately with family coverage, the instructions use half of that 75% figure. IRS: Instructions for Form 8853 (2025)

Excess contributions

If too much goes into the account, you may owe an additional tax. You figure that tax on Form 5329. You can avoid the tax on excess amounts by withdrawing them by the due date of your return, including extensions. You must also withdraw the earnings on those amounts, and you cannot claim a deduction for the withdrawn contributions. IRS: Instructions for Form 8853 (2025)

Part II: withdrawals

Line 6a is the total of distributions shown in box 1 of Form 1099-SA. Line 7 is the part used for qualified medical expenses. Line 8 is the amount included in income. The form then applies an additional tax to the taxable part, unless an exception applies. IRS: Form 8853 (2025)

The additional 20% tax does not apply to distributions made after the account holder dies, becomes disabled, or turns 65. It applies to taxable distributions made before any of those events. IRS: Instructions for Form 8853 (2025)

Rollovers and transfers

A rollover generally must be completed within 60 days after the distribution. The instructions say an Archer MSA and an HSA can receive only one rollover contribution in a 1-year period. A direct transfer between Archer MSA trustees is different. The instructions say it is not a rollover, and it is not reported as income. IRS: Instructions for Form 8853 (2025)

Steps to follow

Confirm that you were eligible for the account in 2025, and that your high deductible plan met the 2025 figures.
Track contributions against the limit, using your plan's deductible and your coverage type.
Note any excess and the date you withdraw it.
Compare Form 1099-SA with your receipts, then complete Form 8853 and carry the totals to Schedule 2 as the form directs.

For the related health account, see the HSA rules. For where additional taxes go on the return, see Schedule 2 (Form 1040).

General information, not advice for your situation.

Sources: Sources: IRS, Form 8853 (2025), Archer MSAs and Long-Term Care Insurance Contracts (https://www.irs.gov/pub/irs-pdf/f8853.pdf); IRS, Instructions for Form 8853 (2025) (https://www.irs.gov/pub/irs-pdf/i8853.pdf); IRS, About Form 8853 (https://www.irs.gov/forms-pubs/about-form-8853) This is general information, not advice about your specific return.

← Back to the blog · Leer en español