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

Lam Research Employees, Prepare for Enhanced HSA Benefits in 2025

Healthcare Provider Update: Healthcare Provider for Lam Research Lam Research offers healthcare benefits through a variety of providers. While specific details about the exact healthcare insurer may vary based on employee health plan selections, employees typically can choose from major insurance networks, including providers like Anthem and Kaiser Permanente, as per the company's offerings. Potential Healthcare Cost Increases in 2026 In 2026, healthcare costs are forecasted to see significant increases, driven by a confluence of factors. Individuals enrolled in the Affordable Care Act (ACA) marketplace could be particularly affected, with potential premium hikes exceeding 60% in some states. The anticipated expiration of enhanced federal subsidies could leave nearly 92% of policyholders facing steep out-of-pocket expenses, with some projections indicating increases upwards of 75%. Coupled with ongoing medical cost inflation and surging drug prices, these dynamics pose challenges for employees at organizations like Lam Research as they navigate their healthcare options in a rapidly changing landscape. Click here to learn more

For Lam Research 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, Lam Research 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 Lam Research 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 Lam Research 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 Lam Research 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 type of retirement savings plan does Lam Research offer to its employees?

Lam Research offers a 401(k) retirement savings plan to its employees.

Does Lam Research provide a company match for contributions to the 401(k) plan?

Yes, Lam Research provides a company match for employee contributions to the 401(k) plan, subject to certain limits.

When can employees at Lam Research start contributing to their 401(k) plan?

Employees at Lam Research can start contributing to their 401(k) plan after completing their initial eligibility period.

What is the maximum contribution limit for the Lam Research 401(k) plan?

The maximum contribution limit for the Lam Research 401(k) plan is in accordance with IRS guidelines, which are updated annually.

Are there investment options available within the Lam Research 401(k) plan?

Yes, the Lam Research 401(k) plan offers a variety of investment options for employees to choose from.

Can employees at Lam Research take loans against their 401(k) savings?

Yes, Lam Research allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What happens to my 401(k) balance if I leave Lam Research?

If you leave Lam Research, you can choose to roll over your 401(k) balance to another qualified plan or take a distribution, subject to tax implications.

Is there a vesting schedule for the company match in the Lam Research 401(k) plan?

Yes, there is a vesting schedule for the company match in the Lam Research 401(k) plan, which determines when employees fully own the matched contributions.

How can I access my 401(k) account information at Lam Research?

Employees can access their 401(k) account information through the designated online portal provided by Lam Research.

Does Lam Research offer any educational resources for employees regarding their 401(k) plan?

Yes, Lam Research provides educational resources and workshops to help employees understand their 401(k) plan options and investment strategies.

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

Lam Research offers a comprehensive retirement plan that includes both a 401(k) and pension plan for its employees. The Lam Research 401(k) Plan is administered by Fidelity Investments, allowing employees to contribute pretax, Roth, and after-tax dollars. The maximum contribution limit for 2024 is $23,000 for those under 50, and $30,500 for those over 50, including catch-up contributions. This 401(k) plan offers flexibility in investment options, allowing employees to diversify their portfolios according to their retirement goals. Additionally, employees can consolidate previous 401(k) accounts and take their retirement savings with them if they leave Lam Research (Lam Benefits) (Lam Benefits). Lam Research also provides an employee pension plan through a Cash Balance Pension Plan. This plan calculates benefits based on a combination of an employee's earnings and years of service. Employees accrue benefits annually as a percentage of their pay, and the accumulated amount grows with interest credits. Eligibility for the pension plan typically requires at least five years of service, though the specific pension formula may depend on the employee's age and years of service (Lam Benefits) (Lam Research). The 401(k) Plan and Cash Balance Pension Plan at Lam Research are essential for employees looking to secure their retirement. Employees are encouraged to take advantage of the full range of investment options and matching contributions offered by the company to maximize their retirement savings potential. These plans provide robust support for employees aiming to achieve long-term financial security (Lam Benefits) (Lam Research).

Restructuring and Layoffs: In January 2023, Lam Research announced significant layoffs, affecting 1,300 employees globally, which amounts to 7% of their workforce. These job cuts were in response to economic challenges and declining semiconductor demand, driven in part by U.S. export controls on China and a global supply glut in memory chips (Data Center Dynamics) (Enterprise Technology News and Analysis). The layoffs followed a 65% workforce increase during the pandemic, as the company expanded rapidly to meet surging chip demand. Further layoffs were announced later in the year, focusing on realigning the company with market realities. Importance: It is crucial to address these layoffs because they highlight the impact of shifting geopolitical policies, such as U.S.-China trade restrictions, which are reshaping the global semiconductor market. The economic, tax, and political environment continues to influence corporate restructuring decisions, making it vital for stakeholders to monitor these changes.

Lam Research offers employees both stock options and Restricted Stock Units (RSUs) as part of its compensation package. The company's stock options provide employees the right to purchase Lam Research (LRCX) shares at a predetermined price, typically after a vesting period. RSUs, on the other hand, are units that convert into Lam Research shares once vesting conditions are met. These equity-based compensations are offered to eligible employees, generally including top executives and senior management, though they can extend to other staff as a form of long-term incentive. In 2022, 2023, and 2024, Lam Research continued to offer stock options and RSUs, with increased equity-based compensation expenses year-over-year. For example, in 2022, the company reported equity-based compensation expenses of $189.47 million, a significant increase from the previous year. This trend reflects Lam Research's ongoing commitment to providing competitive stock options and RSUs to retain and motivate its workforce (Lam Research Investor Relations). These stock options and RSUs are available to Lam Research employees who meet specific service or performance-based criteria, and vesting typically occurs over multiple years. You can refer to Lam Research's official financial reports, such as the Condensed Consolidated Statements of Cash Flows from 2022, for more details on these compensations (page 2 of Lam Research's 2022 investor report) (Lam Research Investor Relations).

Lam Research offers a comprehensive health benefits package designed to support employee well-being across multiple dimensions—physical, mental, and financial. The company's healthcare offerings include options such as the Anthem Consumer Directed Health Plan (CDHP) with Health Savings Account (HSA) and Kaiser Permanente Consumer Directed Health Plan (CDHP). These plans provide employees with preventive care at no cost and offer high-deductible structures to allow employees to contribute pretax dollars toward healthcare expenses through Health Savings Accounts (HSAs) or Flexible Spending Accounts (FSAs) (Lam Benefits) (Lam Benefits). In addition to traditional health insurance, Lam Research promotes mental wellness through its Employee Assistance Program (EAP), offering free confidential counseling, and its "Live Well" program, which supports year-round physical and emotional well-being (Lam Benefits) (Lam Research). These benefits are especially significant given the rising healthcare costs in the U.S., with employers anticipating an average 5.4% increase in 2024 (Lam Benefits). Discussing healthcare benefits in the context of today's economic, investment, and political environment is critical as costs continue to rise and employees seek greater security. For instance, Lam’s approach to healthcare, including telemedicine, virtual physical therapy, and supplemental medical benefits like critical illness insurance, helps employees manage their health more effectively while potentially reducing out-of-pocket expenses (Lam Research) (Lam Benefits). The introduction of tax-advantaged HSAs and voluntary coverage options further demonstrates the company’s commitment to offering flexible solutions that align with current healthcare challenges and evolving tax laws (Lam Benefits). This balance of cost management and comprehensive care reflects Lam's understanding of the modern workforce's needs.

Additional Articles

Check Out Articles for Lam Research employees

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

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