Oracle Employees, Prepare for Enhanced HSA Benefits in 2025

For Oracle 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, Oracle 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 Oracle 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 Oracle 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 Oracle 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 Oracle's 401(k) plan?

Oracle's 401(k) plan is a retirement savings plan that allows employees to save a portion of their salary on a pre-tax or Roth after-tax basis.

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

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

Does Oracle match contributions to the 401(k) plan?

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

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

The maximum contribution limit for Oracle's 401(k) plan is set by the IRS and may change annually. Employees should check the latest IRS guidelines for the current limit.

Can I change my contribution rate to Oracle's 401(k) plan?

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

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

Oracle's 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles.

When can I access my funds from Oracle's 401(k) plan?

Employees can access their funds from Oracle's 401(k) plan upon reaching retirement age, or in cases of hardship, termination of employment, or other qualifying events.

Does Oracle provide financial counseling for 401(k) participants?

Yes, Oracle provides access to financial counseling services to help employees make informed decisions about their 401(k) investments.

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

Employees can change their investment choices in Oracle's 401(k) plan at any time, subject to the plan's trading policies.

What happens to my Oracle 401(k) if I leave the company?

If you leave Oracle, you have several options for your 401(k), including rolling it over to another retirement account, leaving it with Oracle, or cashing it out (which may incur taxes and penalties).

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

Oracle offers a defined contribution 401(k) plan with company matching contributions. Employees can contribute pre-tax or Roth (after-tax) dollars, and Oracle matches 50% of the first 6% of eligible compensation. The plan includes various investment options such as target-date funds, mutual funds, and a self-directed brokerage account. Oracle also provides an Employee Stock Purchase Plan (ESPP) with a discount on company stock. Financial planning resources and tools are available to help employees manage their retirement savings.

Oracle offers both RSUs and stock options as part of its employee compensation. RSUs vest over time, providing shares, while stock options allow employees to purchase shares at a set price.