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Moderna Employees, Prepare for Enhanced HSA Benefits in 2025

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For Moderna 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, Moderna 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 Moderna 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 Moderna 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 Moderna 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 is the 401(k) plan offered by Moderna?

Moderna offers a 401(k) plan that allows employees to save for retirement by contributing a portion of their salary on a pre-tax or Roth after-tax basis.

How can I enroll in Moderna's 401(k) plan?

Employees can enroll in Moderna's 401(k) plan through the company’s benefits portal during the open enrollment period or within 30 days of their hire date.

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

Yes, Moderna provides a company match for employee contributions to the 401(k) plan, which helps boost retirement savings.

What is the maximum contribution limit for Moderna's 401(k) plan?

For 2023, the maximum contribution limit for Moderna's 401(k) plan is $22,500, with an additional catch-up contribution of $7,500 for employees aged 50 and older.

Can I change my contribution percentage to Moderna's 401(k) plan?

Yes, employees can change their contribution percentage to Moderna's 401(k) plan at any time through the benefits portal.

What investment options are available in Moderna's 401(k) plan?

Moderna's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and company stock.

How often can I change my investment choices in Moderna's 401(k) plan?

Employees can change their investment choices in Moderna's 401(k) plan at any time, allowing for flexibility in managing their retirement savings.

Is there a vesting schedule for the company match in Moderna's 401(k) plan?

Yes, Moderna has a vesting schedule for the company match, which typically requires employees to work for a certain number of years before they fully own the matched contributions.

Can I take a loan against my 401(k) with Moderna?

Yes, Moderna allows employees to take loans against their 401(k) balance, subject to specific terms and conditions outlined in the plan document.

What happens to my 401(k) plan if I leave Moderna?

If you leave Moderna, you have several options for your 401(k) plan, including rolling it over to an IRA or a new employer's plan, cashing it out, or leaving it with Moderna.

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

Moderna offers a comprehensive retirement benefits package, which includes a defined contribution 401(k) plan. The company's 401(k) plan allows employees to make contributions through payroll deductions, with Moderna matching contributions based on employee elections. As of 2023, the contribution limit for Moderna employees participating in the 401(k) plan is $22,500, with an additional catch-up contribution of $7,500 for employees aged 50 and older (Mondaq) (KPMG). These limits reflect increases compared to the prior year, consistent with IRS guidelines. The plan offers both traditional 401(k) and Roth 401(k) options, allowing for tax-deferred or post-tax contributions, depending on the employee's financial strategy. Moderna also offers employer matching contributions, enhancing retirement savings for participating employees. Moderna’s plan provides various investment options, allowing employees to customize their retirement portfolios based on risk tolerance and retirement goals (Mondaq). Moderna uses its own specific acronyms, such as "RSP" (Retirement Savings Plan) for the 401(k) plan and "ModMatch" for its matching contribution feature. Employees become eligible for the 401(k) plan upon hire, and those who work at least 500 hours over three consecutive 12-month periods qualify to make contributions starting January 2024, as part of the SECURE Act amendments

Moderna announced layoffs in 2024, primarily affecting its manufacturing unit, as part of a resizing strategy linked to its COVID production footprint. The company decided to cut jobs due to reduced demand for its COVID-related products and to optimize manufacturing costs. CEO Stéphane Bancel emphasized the importance of ongoing cost improvements in manufacturing as the company pivots away from focusing solely on COVID vaccines toward a broader pharmaceutical portfolio. Moderna expanded its headcount by 44% in 2023, but these layoffs reflect a necessary adjustment to its business strategy moving forward (FiercePharma).

Moderna provides its employees with stock options and Restricted Stock Units (RSUs) as part of their long-term incentive compensation. These programs are designed to align employee interests with shareholder value by granting ownership stakes in Moderna. Employees may receive Non-Qualified Stock Options (NSOs) and RSUs, which vest over time. NSOs give employees the right to buy Moderna stock at a pre-determined price, while RSUs grant shares upon vesting without the need for an initial purchase (SEC.gov) (Moderna). In 2022, Moderna reported that its stock option grants focused on driving financial and operational goals, including stock price appreciation. The company ensures that the majority of executive compensation is tied to at-risk components like stock options and RSUs. These awards are typically available to executives and employees in key roles (SEC.gov) (Moderna). The RSU program at Moderna also emphasizes long-term retention and performance, rewarding employees based on their contributions to the company's success. Moderna's stock options and RSU plans in 2023 and 2024 remained focused on aligning long-term incentives with business objectives, including the expansion of its pipeline and manufacturing capacity (SEC.gov). Executives and high-performing employees across various departments are eligible for these equity awards, ensuring their incentives are linked to Moderna’s overall performance (Moderna).

Health Insurance Options: Moderna provides multiple insurance plans, including health, dental, and vision coverage, ensuring that employees have access to preventive and medical care. These plans also include options for telemedicine and wellness care, reflecting industry trends. Lifestyle Spending Account: This program offers employees an annual allowance they can use towards fitness, nutrition, and other wellness activities, helping them maintain a healthy lifestyle. Personal Enrichment Benefit: This unique benefit provides an annual stipend for personal growth, such as attending language classes or certification programs like yoga instruction. Mental Health Support: Moderna prioritizes mental health with programs that offer support through Employee Assistance Programs (EAP), which include confidential counseling services. Family and Parental Benefits: The company has generous parental leave programs and fertility benefits, which have become standard in their competitive benefits package.

Additional Articles

Check Out Articles for Moderna employees

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

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