Who is eligible to contribute to a medical savings account?

The eligibility to contribute to a medical savings account (MSA) is primarily designed for individuals who are part of a high-deductible health insurance plan, but it is particularly limited to specific groups as defined by regulatory guidelines. In the context of the choices given, the correct option identifies groups of 50 or fewer employees.

This is primarily because MSAs were initially established for small businesses and self-employed individuals to help provide a tax-advantaged way to save for medical expenses. By allowing groups of smaller size (50 or fewer employees) to participate, the structure promotes greater accessibility and affordability for small businesses, which may have limited resources compared to larger corporations.

In contrast, the other choices do not align with the regulations governing MSAs. For instance, while any individual under the right circumstances and plan may benefit from using an MSA, it is not broadly applicable to everyone universally. Larger groups, such as companies with over 100 employees, typically do not qualify for MSAs as they might instead utilize other forms of health reimbursement arrangements. Government employees often have specific health plans that do not involve MSAs, as these accounts are not typically a part of their benefits structure. Thus, the specific focus on groups of 50 or fewer employees