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MKS Instruments Employees, Prepare for Enhanced HSA Benefits in 2025

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For MKS Instruments 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, MKS Instruments 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 MKS Instruments 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 MKS Instruments 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 MKS Instruments 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 401(k) plan offered by MKS Instruments?

The 401(k) plan at MKS Instruments is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How can I enroll in the MKS Instruments 401(k) plan?

You can enroll in the MKS Instruments 401(k) plan by completing the enrollment form available through the HR portal or by contacting the HR department for assistance.

Does MKS Instruments offer a company match for the 401(k) contributions?

Yes, MKS Instruments provides a company match for employee contributions to the 401(k) plan, subject to specific terms and conditions.

What is the maximum contribution limit for the MKS Instruments 401(k) plan?

The maximum contribution limit for the MKS Instruments 401(k) plan aligns with IRS guidelines, which are updated annually.

Can I change my contribution percentage for the MKS Instruments 401(k) plan?

Yes, employees can change their contribution percentage for the MKS Instruments 401(k) plan at any time by submitting a request through the HR portal.

What investment options are available in the MKS Instruments 401(k) plan?

The MKS Instruments 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to choose based on their risk tolerance.

When can I access my funds in the MKS Instruments 401(k) plan?

Employees can access their funds in the MKS Instruments 401(k) plan upon reaching retirement age, or under certain circumstances such as hardship withdrawals.

What happens to my MKS Instruments 401(k) plan if I leave the company?

If you leave MKS Instruments, you can either roll over your 401(k) balance to another retirement account or leave it in the MKS Instruments plan, subject to plan rules.

Does MKS Instruments allow loans against my 401(k) balance?

Yes, MKS Instruments may allow employees to take loans against their 401(k) balance, subject to specific terms and conditions outlined in the plan.

Are there any fees associated with the MKS Instruments 401(k) plan?

Yes, there may be fees associated with managing the MKS Instruments 401(k) plan, which are typically disclosed in the plan documents.

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

Name of Pension Plan: MKS Instruments does not offer a traditional pension plan. The company primarily provides a 401(k) plan for its employees. Years of Service and Age Qualification: MKS Instruments does not have a pension plan, so there are no qualifications related to years of service or age for a pension. Name of 401(k) Plan: The 401(k) plan at MKS Instruments is simply referred to as the "MKS Instruments 401(k) Plan." Eligibility and Qualification: Eligibility: Employees are eligible to participate in the MKS Instruments 401(k) Plan immediately upon hire. Qualification for Matching Contributions: The company offers a matching contribution to eligible employees. To qualify for the company match, employees must contribute a percentage of their salary to their 401(k) account. Specific details regarding the match percentage can be found in the company's plan document.

Restructuring and Layoffs: In early 2024, MKS Instruments announced a restructuring plan aimed at streamlining operations and reducing costs. This includes a reduction of approximately 5% of its workforce, focusing on consolidating roles and improving efficiency. This decision comes amidst a challenging economic climate and increased operational costs. The company’s efforts are designed to enhance its competitive position and adapt to market fluctuations. Benefit Changes: MKS Instruments has also revised its employee benefits package to better align with current financial constraints. Changes include adjustments to healthcare contributions and modifications to its retirement benefits plan. These changes reflect the company's response to evolving economic conditions and aim to sustain long-term financial health. It is crucial to monitor these updates due to their potential impact on employee satisfaction and overall company stability in the current economic environment.

Stock Options: MKS Instruments provided stock options as part of their employee compensation package. The company’s stock option plans are detailed in their 2022 10-K filing. RSUs: Restricted Stock Units (RSUs) were also available to employees, offering equity-based compensation.

Health Benefits Overview: MKS Instruments offers comprehensive health benefits to its employees, including medical, dental, and vision insurance. They provide both PPO (Preferred Provider Organization) and HMO (Health Maintenance Organization) plans. 2023 Updates: The company introduced a new High Deductible Health Plan (HDHP) in 2023 with Health Savings Account (HSA) eligibility. They also improved the employee wellness program, including mental health resources