Hearst Corporation Employees, Prepare for Enhanced HSA Benefits in 2025

For Hearst Corporation 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, Hearst Corporation 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 Hearst Corporation 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 Hearst Corporation 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 Hearst Corporation 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 Hearst Corporation 401(k) Savings Plan?

The Hearst Corporation 401(k) Savings Plan is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are deducted, helping them prepare for retirement.

How does the Hearst Corporation match contributions to the 401(k) Savings Plan?

Hearst Corporation offers a matching contribution to the 401(k) Savings Plan, typically matching a percentage of employee contributions, up to a certain limit.

When can employees at Hearst Corporation enroll in the 401(k) Savings Plan?

Employees at Hearst Corporation can enroll in the 401(k) Savings Plan during their initial onboarding period or during designated open enrollment periods throughout the year.

What types of investment options are available in the Hearst Corporation 401(k) Savings Plan?

The Hearst Corporation 401(k) Savings Plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles tailored to different risk tolerances.

Are there any fees associated with the Hearst Corporation 401(k) Savings Plan?

Yes, the Hearst Corporation 401(k) Savings Plan may have administrative fees and investment-related fees, which are outlined in the plan documents provided to employees.

Can employees take loans from their Hearst Corporation 401(k) Savings Plan?

Yes, employees may have the option to take loans from their Hearst Corporation 401(k) Savings Plan, subject to certain conditions and limits.

What happens to my Hearst Corporation 401(k) Savings Plan if I leave the company?

If you leave Hearst Corporation, you have several options for your 401(k) Savings Plan, including rolling it over into an IRA or a new employer's plan, or cashing it out (though this may incur taxes and penalties).

How can I access my Hearst Corporation 401(k) Savings Plan account information?

Employees can access their Hearst Corporation 401(k) Savings Plan account information online through the plan's designated website or by contacting the plan administrator.

Is there a vesting schedule for the Hearst Corporation 401(k) Savings Plan?

Yes, the Hearst Corporation 401(k) Savings Plan may have a vesting schedule that determines when employees fully own the company's matching contributions.

Can I change my contribution rate to the Hearst Corporation 401(k) Savings Plan?

Yes, employees can change their contribution rate to the Hearst Corporation 401(k) Savings Plan, typically at any time, depending on the plan's rules.