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For BJs Wholesale Club 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, BJs Wholesale Club 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 BJs Wholesale Club 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 BJs Wholesale Club 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 BJs Wholesale Club retirement planning strategy.
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- Corporate Employees: 8 Factors When Choosing a Mutual Fund
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- Medicare Open Enrollment for Corporate Employees: Cost Changes in 2024!
- Stages of Retirement for Corporate Employees
- 7 Things to Consider Before Leaving Your Company
- How Are Workers Impacted by Inflation & Rising Interest Rates?
- Lump-Sum vs Annuity and Rising Interest Rates
- Internal Revenue Code Section 409A (Governing Nonqualified Deferred Compensation Plans)
- Corporate Employees: Do NOT Believe These 6 Retirement Myths!
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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 type of retirement savings plan does BJ's Wholesale Club offer to its employees?
BJ's Wholesale Club offers a 401(k) retirement savings plan to its employees.
Is there an employer match for contributions made to the 401(k) plan at BJ's Wholesale Club?
Yes, BJ's Wholesale Club provides an employer match for employee contributions to the 401(k) plan, subject to certain limits.
What is the eligibility requirement for BJ's Wholesale Club employees to participate in the 401(k) plan?
Employees of BJ's Wholesale Club are typically eligible to participate in the 401(k) plan after completing a specified period of service.
Can BJ's Wholesale Club employees choose how their 401(k) contributions are invested?
Yes, BJ's Wholesale Club employees can choose from a variety of investment options for their 401(k) contributions.
What is the maximum contribution limit for the 401(k) plan at BJ's Wholesale Club?
The maximum contribution limit for the 401(k) plan at BJ's Wholesale Club is in line with IRS guidelines, which may change annually.
Does BJ's Wholesale Club offer a Roth 401(k) option?
Yes, BJ's Wholesale Club offers a Roth 401(k) option, allowing employees to make after-tax contributions.
How often can BJ's Wholesale Club employees change their 401(k) contribution amount?
BJ's Wholesale Club employees can typically change their 401(k) contribution amount on a quarterly basis.
What happens to my 401(k) account if I leave BJ's Wholesale Club?
If you leave BJ's Wholesale Club, you can choose to roll over your 401(k) account to another retirement plan, cash it out, or leave it with BJ's Wholesale Club.
Are there loans available against the 401(k) plan at BJ's Wholesale Club?
Yes, BJ's Wholesale Club allows employees to take loans against their 401(k) balance, subject to plan rules.
Can BJ's Wholesale Club employees access their 401(k) funds before retirement?
Yes, BJ's Wholesale Club employees may access their 401(k) funds before retirement under certain circumstances, such as financial hardship.
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