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

Landstar System Employees, Prepare for Enhanced HSA Benefits in 2025

Healthcare Provider Update: Healthcare Provider for Landstar System Landstar System, Inc. partners with various healthcare providers to offer health insurance benefits to its employees. While the specific healthcare provider can vary depending on the insurance plan chosen by employees, Landstar commonly collaborates with major national insurers such as Aetna, Blue Cross Blue Shield, and UnitedHealthcare to provide comprehensive health coverage. Healthcare Cost Increases in 2026 As employers brace for steep healthcare cost increases in 2026, the outlook looks particularly daunting due to multiple economic pressures. With projections of medical costs rising by 8.5% and insurers requesting average premium increases of over 20%, workers can expect to see their out-of-pocket expenses soar as enhanced federal premium subsidies expire. The confluence of increased treatment costs, an aging workforce, and overall inflation is exacerbating these challenges, leaving many employees concerned about their ability to afford necessary healthcare services. Without proactive measures, more individuals could find themselves priced out of adequate coverage, emphasizing the urgent need for strategic planning ahead of these changes. Click here to learn more

For Landstar System 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, Landstar System 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 Landstar System 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 Landstar System 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 Landstar System 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 type of retirement plan does Landstar System offer to its employees?

Landstar System offers a 401(k) retirement savings plan to its employees.

How can employees of Landstar System enroll in the 401(k) plan?

Employees of Landstar System can enroll in the 401(k) plan by completing the enrollment process through the company’s benefits portal.

Does Landstar System provide any matching contributions to the 401(k) plan?

Yes, Landstar System offers a matching contribution to the 401(k) plan, which helps employees increase their retirement savings.

What is the maximum contribution limit for the Landstar System 401(k) plan?

The maximum contribution limit for the Landstar System 401(k) plan is subject to IRS guidelines, which can change annually.

Can employees of Landstar System choose between traditional and Roth 401(k) contributions?

Yes, employees of Landstar System have the option to choose between traditional and Roth 401(k) contributions based on their financial goals.

When can employees of Landstar System start withdrawing from their 401(k) accounts?

Employees of Landstar System can start withdrawing from their 401(k) accounts at age 59½, subject to certain conditions.

Is there a loan option available for the Landstar System 401(k) plan?

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

How often can employees change their contribution amounts for the Landstar System 401(k) plan?

Employees of Landstar System can change their contribution amounts at any time, subject to the plan's rules.

What investment options are available in the Landstar System 401(k) plan?

The Landstar System 401(k) plan offers a variety of investment options, including mutual funds and other investment vehicles.

How does Landstar System communicate changes to the 401(k) plan?

Landstar System communicates changes to the 401(k) plan through official company emails, newsletters, and the employee benefits portal.

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

Landstar System offers a defined contribution retirement plan in the form of a 401(k) plan for its employees. The Landstar System, Inc. 401(k) Savings Plan had assets of $159,548,262 at the end of 2022 and serves a substantial number of participants (Landstar System, Inc. - IR site). The company does not offer a traditional defined benefit pension plan; instead, the focus is on their 401(k) plan. In the Landstar System 401(k) Savings Plan, employees are automatically enrolled and can choose to invest in a variety of funds, including target-date retirement funds and other mutual funds. A notable feature of the plan is the default investment option, which automatically places participants' contributions into a predefined investment account if they do not actively select one. Landstar also provides matching contributions up to a certain percentage of an employee’s salary. Eligibility for the plan typically requires employees to complete a short service period (often one year) to receive matching contributions (Landstar System, Inc. - IR site). Participants in the Landstar System 401(k) plan are vested in company contributions after a specified period of continued employment. These contributions are designed to help employees save for retirement over the course of their career at Landstar (Landstar System, Inc. - IR site). The information was sourced from company financial reports and official retirement plan documents. Details regarding the vesting schedule and contribution limits can be found on pages 3-4 of the official Landstar System employee benefits handbook (Landstar System, Inc. - IR site).

Landstar System has not experienced major restructuring layoffs in 2023 or 2024. The company has maintained its asset-light business model, focusing on logistics and transportation services without reducing its workforce significantly (Landstar System, Inc. - IR site) (Landstar). Landstar has enhanced its benefits and 401(k) plan offerings, including improved health insurance options and better retirement matching contributions. These changes were part of their effort to remain competitive in retaining talent. It is important to address this news due to the ongoing economic uncertainties, which affect investment strategies, tax policies, and political decisions (Landstar System, Inc. - IR site) (Landstar).