For BWX Technologies 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, BWX Technologies 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 BWX Technologies 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 BWX Technologies 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 BWX Technologies retirement planning strategy.
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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
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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 BWX Technologies offer to its employees?
BWX Technologies offers a 401(k) retirement savings plan to help employees save for their future.
Is there a company match for contributions made to the BWX Technologies 401(k) plan?
Yes, BWX Technologies provides a company match for employee contributions to the 401(k) plan, which helps boost retirement savings.
How can employees enroll in the BWX Technologies 401(k) plan?
Employees can enroll in the BWX Technologies 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.
What is the eligibility requirement to participate in the BWX Technologies 401(k) plan?
Employees of BWX Technologies are typically eligible to participate in the 401(k) plan after completing a specified period of service, as outlined in the plan documents.
Can employees change their contribution percentage to the BWX Technologies 401(k) plan?
Yes, employees can change their contribution percentage to the BWX Technologies 401(k) plan at any time, subject to plan rules.
What investment options are available in the BWX Technologies 401(k) plan?
BWX Technologies offers a range of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles.
Does BWX Technologies offer financial education resources for employees regarding the 401(k) plan?
Yes, BWX Technologies provides financial education resources, including workshops and online tools, to help employees make informed decisions about their 401(k) savings.
What is the vesting schedule for the company match in the BWX Technologies 401(k) plan?
The vesting schedule for the company match in the BWX Technologies 401(k) plan may vary; employees should refer to the plan documents for specific details.
Can employees take loans against their 401(k) savings at BWX Technologies?
Yes, BWX Technologies allows employees to take loans against their 401(k) savings, subject to the terms and conditions of the plan.
What happens to my 401(k) savings if I leave BWX Technologies?
If you leave BWX Technologies, you can choose to roll over your 401(k) savings to another retirement account, cash out, or leave the funds in the BWX Technologies plan, depending on the plan's rules.
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