Lennox International Employees, Prepare for Enhanced HSA Benefits in 2025

For Lennox International 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, Lennox International 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 Lennox International 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 Lennox International 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 Lennox International 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 retirement plans does Lennox International offer to its employees?

Lennox International offers a 401(k) Savings Plan that allows employees to save for retirement through pre-tax contributions.

How can employees of Lennox International enroll in the 401(k) Savings Plan?

Employees of Lennox International can enroll in the 401(k) Savings Plan during their onboarding process or during open enrollment periods.

Does Lennox International match employee contributions to the 401(k) Savings Plan?

Yes, Lennox International offers a matching contribution to the 401(k) Savings Plan, which helps employees grow their retirement savings.

What is the maximum contribution limit for the 401(k) Savings Plan at Lennox International?

The maximum contribution limit for the 401(k) Savings Plan at Lennox International is subject to IRS limits, which can change annually. Employees should check the latest guidelines for specific amounts.

Can employees of Lennox International take loans against their 401(k) Savings Plan?

Yes, Lennox International allows employees to take loans against their 401(k) Savings Plan, subject to certain terms and conditions.

What investment options are available in the Lennox International 401(k) Savings Plan?

The 401(k) Savings Plan at Lennox International offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

How often can employees change their contribution amounts to the 401(k) Savings Plan at Lennox International?

Employees at Lennox International can change their contribution amounts to the 401(k) Savings Plan on a quarterly basis or during designated enrollment periods.

Is there a vesting schedule for the employer match in the Lennox International 401(k) Savings Plan?

Yes, there is a vesting schedule for the employer match in the Lennox International 401(k) Savings Plan, which determines when employees fully own the matched contributions.

What happens to the 401(k) Savings Plan if an employee leaves Lennox International?

If an employee leaves Lennox International, they have several options for their 401(k) Savings Plan, including rolling it over to another retirement account or cashing it out, subject to taxes and penalties.

How can employees access their 401(k) Savings Plan account information at Lennox International?

Employees can access their 401(k) Savings Plan account information through the company's online benefits portal or by contacting the HR department.

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

Pension Plan: Lennox International offers its employees the Lennox International Inc. 2008 Consolidated Pension Plan, which is available for U.S.-based employees. The pension formula used by Lennox is a Defined Benefit formula, where retirement benefits are determined based on years of service and final average earnings. This plan applies to employees with long-term tenure and is part of Lennox's broader efforts to offer retirement security. Lennox International calculates benefits based on a multiplier applied to the employee's final average salary and length of service. The company has historically adjusted pension funding as needed to account for market conditions. The 2008 Consolidated Pension Plan continues to be relevant through 2023 and 2024. [Source: SEC Filing, Page 45] (Lennox). 401(k) Plan: Lennox International offers a 401(k) plan to both salaried and hourly employees, referred to as the Lennox International Inc. 401(k) Plan. Employees are eligible to participate after meeting the required age and service thresholds. The company provides a matching contribution of up to 6%, which applies to all eligible employees. The 401(k) plan includes both traditional and Roth options, allowing employees to make pre-tax or post-tax contributions depending on their financial goals. The plan has continued to operate efficiently throughout 2022, 2023, and 2024, allowing employees to grow their retirement savings with company support. [Source: Lennox Annual Report, Page 72] (Lennox).

In 2023, Lennox International divested its European operations as part of its restructuring efforts to focus on its core North American market. This was driven by rising material costs, inflation, and a shift towards energy-efficient solutions. Lennox also projected a core revenue growth between 0-4% for 2023, with long-term revenue targets between $5.0-$5.5 billion by 2026. CEO Alok Maskara emphasized the importance of cost reduction and leveraging productivity initiatives to offset inflation (Lennox). Lennox’s restructuring and financial projections reflect the company’s efforts to remain competitive amid economic challenges and inflationary pressures. It is critical to address Lennox’s restructuring and benefit changes in light of the current economic, tax, and political environment. Rising costs and regulatory shifts in the energy sector are prompting companies like Lennox to focus on financial stability, sustainability, and innovation. The company’s ability to adapt to these challenges by cutting costs and focusing on core markets will significantly impact its long-term success and employee benefits.

Lennox International offers stock options and Restricted Stock Units (RSUs) to its employees as part of their executive compensation plan. In 2022, 2023, and 2024, Lennox International granted RSUs under time-based vesting schedules. These RSUs do not require employees to purchase shares; instead, shares are delivered upon vesting, which aligns with performance and retention goals. Stock options allow employees to purchase shares at a fixed price after meeting specific conditions. These plans aim to incentivize long-term employment and performance improvements for eligible employees. For instance, RSUs were granted on March 15, 2023, with 2,052 shares vesting, and future vesting schedules are set for March 15, 2024 (Lennox) (Lennox) (Lennox). Only executives and key employees, such as directors and covered persons under Section 16 of the Securities Exchange Act, are eligible to receive these RSUs and stock options

Lennox International offers a comprehensive suite of health benefits to its employees, emphasizing wellness and flexibility. Employees have access to various health plans, including medical, dental, and vision insurance, as well as flexible spending accounts (FSAs) and health savings accounts (HSAs). Lennox International also prioritizes mental health, offering programs such as employee assistance plans (EAPs) to support psychological well-being. Recent updates to Lennox's benefits structure reflect a growing focus on preventative care and wellness initiatives, which align with current trends toward promoting long-term employee health (Built In) (Lennox). These changes are particularly important in the current economic and political environment, where healthcare costs continue to rise, and there is increased pressure for companies to provide sustainable health benefits to attract and retain talent. In light of the growing demand for high-quality healthcare, Lennox International has also implemented benefits related to disability coverage, life insurance, and wellness programs, which include incentives for healthy living (Lennox). These initiatives are critical as companies face economic challenges and evolving tax regulations that could impact employer-provided health benefits. Addressing healthcare topics in this context is essential, as political decisions regarding healthcare policy can directly influence the stability and cost of corporate health plans. Lennox International's approach to healthcare aims to protect employees against rising healthcare expenses while ensuring compliance with current tax and economic policies

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

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