What if a participant requires more funds in their eHSA to cover anticipated expenses?
The participant may approach the employer to enter into a “compensation arrangement” on a year to year basis. Under such a formalized arrangement that does not cost the employer anything other than a change to payroll for the individual, the employee would take a reduction in salary of “X” thousand dollars per year (including the eHSA administration fees) and have the employer contribute this amount in pre-tax dollars to the their personal eHSA account. This enables the employee to have sufficient funds available in a tax sheltered vehicle to cover their family’s medical or dental expense. It is the most tax-effective method of handling the cost of major dental expenses such as Orthodontia or dental implants, or Fertility treatments.
