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ATI Employees, Prepare for Enhanced HSA Benefits in 2025

Healthcare Provider Update: Offers two medical plan types with varying premiums and deductibles, dental, vision, HSAs, FSAs, and paid parental leave 10. With ACA premiums rising, ATIs customizable plans and employer HSA contributions offer employees cost control and coverage flexibility. Click here to learn more

For ATI employees, maximizing contributions to your HSA in 2025 may be a smart way to control costs around healthcare and also grow your long-term savings for retirement, said.

With the increase in HSA contribution limits coming soon, ATI employees approaching retirement should take advantage of this opportunity to grow their healthcare savings now so they can take a tax-efficient approach to future medical costs, said Sullivan.

In this article, we will discuss:

1. Limits on 2025 IRS health savings account (HSA) contributions.

2. How HSAs give you a triple tax advantage and help you control costs for healthcare.

3. HSAs & retirement planning & Medicare premiums.

The IRS has announced inflation-adjusted increases to the health savings account (HSA) contribution limits for 2025. The contribution cap for those with self-only health coverage will increase from USD 4,150 in 2024 to USD 4,300 in 2025, and for families, the maximum will increase from USD 8,300 to USD 8,550.

HSAs provide a triple tax benefit - contributions are deductible, account assets grow tax-free, and withdrawals for approved medical expenses are tax-free. Such features help HSAs manage healthcare costs.

Your high-deductible health plan must offer an HSA. For the year 2025, the IRS says the plans must carry a USD 1,650 individual deductible and USD 3,300 family deductible.Even with all these benefits, a 2023 survey by the Plan Sponsor Council of America found only 19% of HSA account holders invest—most keep their savings in cash—potentially missing big growth opportunities.

The IRS is also updating the catch-up contribution limit for ATI employees over age 55 this year—keeping the USD 1,000 catch-up contribution for now.Understand HSAs and how they could benefit your financial strategy—especially with the rise of healthcare costs and retirement planning. Prompt financial decisions such as switching to a Roth IRA or drafting a will are life planning steps as well.

And for ATI employees approaching retirement age: HSA money can help pay for Medicare premiums when you turn 65. That includes Medicare Advantage plans, as well as Parts B and D premiums, although Medigap premiums are not eligible for HSA expenditure. While not all medical expenses are covered by Medicare, funding these costs through HSAs could optimize your healthcare spending in retirement. A 2022 study by Fidelity Investments estimated medical costs for a retired couple would be around USD 315,000 after taxes.

Consider your health savings account (HSA) an essential tool in your financial toolkit. Like getting a new phone, increasing HSA contribution limits for 2025 gives you more options to manage and invest in your healthcare. You can think of contributing to your HSA as downloading an app that gives you triple tax benefits—deductions on contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. This keeps your health coverage as current and efficient as new technology—making your HSA a critical component of your ATI retirement planning strategy.

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Sources:

1. Fidelity Investments. 'HSA Contribution Limits 2024 and 2025.' Fidelity.com , 23 Jan. 2025, https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits . Accessed 5 Mar. 2025.

2. Plan Sponsor Council of America (PSCA). 'Helping Employees Enroll in HSAs.' PSCA.org , 9 Nov. 2023, https://www.psca.org/news/psca-news/2023/11/PR_2023_HSAreprot . Accessed 5 Mar. 2025.

3. Internal Revenue Service (IRS). 'Part III Administrative, Procedural, and Miscellaneous.' IRS.gov , May 2024, https://www.irs.gov/pub/irs-drop/rp-24-25.pdf . Accessed 5 Mar. 2025.

4. Woodruff Sawyer. 'IRS Releases 2025 HSA Contribution Limits and HDHP Deductible and Out-of-Pocket Limits.' Woodruffsawyer.com , 13 May 2024, https://woodruffsawyer.com/insights/2025-hsa-limits-released . Accessed 5 Mar. 2025.

5. Plan Sponsor Council of America (PSCA). 'HSAs: A Growing Retirement Savings Strategy.' 401k Specialist , Nov. 2023, https://401kspecialistmag.com/higher-numbers-of-hsas-positioned-as-retirement-savings-strategy . Accessed 5 Mar. 2025.

What is the primary purpose of ATI's 401(k) plan?

The primary purpose of ATI's 401(k) plan is to help employees save for retirement by providing a tax-advantaged savings option.

How can ATI employees enroll in the 401(k) plan?

ATI employees can enroll in the 401(k) plan by completing the enrollment process through the company’s HR portal or by contacting the HR department for assistance.

Does ATI offer a company match on 401(k) contributions?

Yes, ATI offers a company match on 401(k) contributions, which helps employees increase their retirement savings.

What is the maximum contribution limit for ATI's 401(k) plan?

The maximum contribution limit for ATI's 401(k) plan is set according to IRS guidelines, which may change annually. Employees should check the latest limits for the current year.

When can ATI employees start contributing to the 401(k) plan?

ATI employees can start contributing to the 401(k) plan after they have completed their eligibility period, which is typically outlined in the employee handbook.

Are there any fees associated with ATI's 401(k) plan?

Yes, there may be fees associated with ATI's 401(k) plan, including administrative fees and investment fees. Employees can review the plan documents for detailed information.

Can ATI employees take loans against their 401(k) savings?

Yes, ATI allows employees to take loans against their 401(k) savings, subject to certain conditions and limits outlined in the plan.

What investment options are available in ATI's 401(k) plan?

ATI's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

How often can ATI employees change their contribution amounts?

ATI employees can change their contribution amounts at specified intervals, typically during open enrollment or at any time as permitted by the plan.

What happens to an ATI employee's 401(k) account if they leave the company?

If an ATI employee leaves the company, they have several options for their 401(k) account, including rolling it over to another retirement account, cashing it out, or leaving it with ATI if allowed.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

ATI recently announced a restructuring plan to streamline operations and cut costs. The company is expected to lay off a significant number of employees as part of this effort. Additionally, ATI is reviewing its pension and 401(k) benefits in light of the restructuring.