Discovery MSA

[Spidey1]

Hi Guys!

I have a quick question. I am joining a new employer a month from now thus having to move to their medical aid. I am leaving Discovery's Classic Saver account.

My question is: Can I use up my MSA before leaving Discovery, like getting new glasses (or contacts) etc?

Thanks!

 

[Chevron]

Hi Guys!

I have a quick question. I am joining a new employer a month from now thus having to move to their medical aid. I am leaving Discovery's Classic Saver account.

My question is: Can I use up my MSA before leaving Discovery, like getting new glasses (or contacts) etc?

Thanks!

If the new medical aid has a MSA the funds will get transferred. If not, they will get paid out.

 

[_Hecate_]

Hi Guys!

I have a quick question. I am joining a new employer a month from now thus having to move to their medical aid. I am leaving Discovery's Classic Saver account.

My question is: Can I use up my MSA before leaving Discovery, like getting new glasses (or contacts) etc?

Thanks!

No, you will have to pay them the msa that you used as its forms part of your monthly contributions.

 

[Tinuva]

Hi Guys!

I have a quick question. I am joining a new employer a month from now thus having to move to their medical aid. I am leaving Discovery's Classic Saver account.

My question is: Can I use up my MSA before leaving Discovery, like getting new glasses (or contacts) etc?

Thanks!

Discovery will pay out the MSA to you in the event that you close the account that has the MSA on, or move to a package without a MSA.

 

[diabolus]

Yea, remember discovery gives your MSA "pro-rata" . So you will have full amount available for the entire year forward, in January. You still actually need to pay the entire year for it. The "real" amount in your MSA (which was transferred from previous years) , is suppose to be transferred to your next medical aid or paid out if it doesn't have an MSA.

So i would be careful just blowing your MSA (especially now, since your MSA is most likely including part of your entire year's projected contributions). Not sure what they do if you leave the medical aid right now and pillaged the MSA, i'm sure they are going to make you pay it back?

 

[jano]

If you use less than your pro-rata MSA for the year, Discovery will pay you out. If you use more, you will have to pay them back.

 

[Spidey1]

Thanks guys.

The pro-rata makes sense. Thus anything carried over from last year plus whatever my pro-rata amount is when I leave will be paid out to me. My new medical aid won't have a MSA. I am taking a cheaper option and building my own MSA...

 

[rhp]

If you withdraw your MSA, there will be tax implications! Remember you paid less tax for the contribution to medical aid.

So, either use your current MSA for what you suggest, or ask for tax clearance to be obtained to transfer balance to the new scheme if the new scheme also offers a MSA. Speak to Discovery/your broker about your options.

 

[SauRoNZA]

This is why the MSA transfer is held back for 6 months (might be less now) specifically so that any pending claims can be settled from it and they don't need to hunt you down to get the money.