New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Foot Locker Employees, Prepare for Enhanced HSA Benefits in 2025

Healthcare Provider Update: Healthcare Provider for Foot Locker: Foot Locker primarily offers health insurance coverage through a partnership with UnitedHealthcare. This collaboration allows Foot Locker employees access to a variety of health benefits, ensuring comprehensive coverage for their medical needs. Potential Healthcare Cost Increases in 2026: As we approach 2026, Foot Locker employees may face significant healthcare cost increases, largely driven by the anticipated expiration of enhanced subsidies for Affordable Care Act (ACA) marketplace plans. Insurers are projecting premium hikes of up to 66% in specific regions, and without congressional intervention to extend these subsidies, many employees could see their out-of-pocket costs rise dramatically-possibly exceeding 75%. This combination of heightened medical expenses and the loss of financial support from federal initiatives presents a challenging landscape for Foot Locker employees relying on ACA coverage. As these costs escalate, proactive financial planning becomes crucial for affected individuals. Click here to learn more

For Foot Locker 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, Foot Locker 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 Foot Locker 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 Foot Locker 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 Foot Locker retirement planning strategy.

Articles you may find interesting:

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 types of contributions can employees make to the Foot Locker 401(k) plan?

Employees at Foot Locker can make pre-tax contributions, Roth (after-tax) contributions, and catch-up contributions if they are eligible.

Does Foot Locker offer any employer matching contributions to the 401(k) plan?

Yes, Foot Locker provides an employer match on employee contributions up to a certain percentage, which is outlined in the plan details.

When can employees at Foot Locker enroll in the 401(k) plan?

Employees can enroll in the Foot Locker 401(k) plan during their initial onboarding or during the annual open enrollment period.

What is the vesting schedule for employer contributions in Foot Locker's 401(k) plan?

Foot Locker has a vesting schedule that typically requires employees to work for a certain number of years before they fully own the employer contributions.

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

Yes, Foot Locker allows employees to take loans from their 401(k) accounts under certain conditions as specified in the plan.

How can Foot Locker employees access their 401(k) account information?

Employees can access their Foot Locker 401(k) account information through the plan's online portal or by contacting the plan administrator.

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

Yes, Foot Locker's 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

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

Foot Locker offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can Foot Locker employees change their contribution amounts?

Employees can change their contribution amounts to the Foot Locker 401(k) plan at any time, subject to the plan’s guidelines.

What happens to Foot Locker employees' 401(k) savings if they leave the company?

If Foot Locker employees leave the company, they can roll over their 401(k) savings to another retirement account, cash out, or leave the funds in the Foot Locker plan if eligible.

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

Foot Locker's Pension Plan: Foot Locker offers a Defined Benefit Pension Plan to long-tenured employees. This plan is based on the Final Average Pay (FAP) formula, which considers an employee's highest five consecutive years of earnings in the last ten years of employment to determine the benefit payout. The retirement benefits under this plan are calculated using the employee's length of service and final average pay. Foot Locker requires employees to have completed at least five years of service to be vested in the pension plan. The qualifying retirement age is typically 65, with early retirement options available starting at age 55 with applicable reductions. Foot Locker's 401(k) Plan: Foot Locker's 401(k) plan, known as the Foot Locker Savings Plan, allows employees to make pre-tax contributions from their salary. Foot Locker matches contributions up to 5% of the employee's salary for eligible employees who have completed one year of service. The plan also offers a Roth 401(k) option, allowing after-tax contributions. Employees are immediately vested in their own contributions, while company matching contributions vest over a period of three years. The plan includes a range of investment options, including mutual funds and target-date funds

Restructuring Layoffs: In 2023, Foot Locker announced several significant layoffs as part of their broader effort to simplify their business operations. These layoffs included corporate and support roles aimed at saving approximately $18 million annually. Additionally, the company decided to shutter its Sidestep banner in Europe and sell off other non-core business units like the Eastbay Team Sales division. This move reflects the broader trend in the retail industry where companies are trimming their workforces to bolster the bottom line against inflation and economic uncertainties. It's essential to address these changes due to the current economic and investment environment, where companies are increasingly focusing on efficiency to navigate challenges.

Foot Locker offers stock options and Restricted Stock Units (RSUs) as part of its compensation package to incentivize and retain key employees. The company typically grants these awards to executives and certain high-level employees, with eligibility and specific terms determined by their role and performance. Foot Locker's stock options allow employees to purchase company stock at a predetermined price, usually after a vesting period. RSUs, on the other hand, are awarded as shares of stock that vest over time, providing employees with ownership once the vesting criteria are met. These stock awards are key components of Foot Locker’s executive compensation strategy, aligning the interests of employees with those of shareholders by linking compensation to company performance.

Foot Locker offers a comprehensive health benefits package to eligible employees, which includes medical, dental, and vision insurance. The company focuses on providing flexible and affordable healthcare options, emphasizing whole-person health, which includes physical, mental, and financial well-being. Employees have expressed satisfaction with the coverage, particularly the inclusion of mental health services, which has been a growing trend in employee benefits. Additionally, Foot Locker's healthcare plan covers prescription drugs, although rising costs have posed challenges for employees (USA Insurance Leaders) (USA Insurance Leaders).

Additional Articles

Check Out Articles for Foot Locker employees

For more information you can reach the plan administrator for Foot Locker at , ; or by calling them at .

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