Can contributions be left in the eHSA to accumulate over a period of years to cover a large anticipated medical expense?
No, based on Advanced Rulings secured from CCRA over the past 13 years, the funds in the eHSA at the end of each second plan year from the immediately prior plan year must be forfeited back to the “employer” under what CCRA terms their “use it or lose it” principle. This is the “element of insurance” required to have the eHSA qualify as a “Private Health Services Plan” as described in Interpretation Bulletin IT-339R2.
