Peloton Interactive Employees, Prepare for Enhanced HSA Benefits in 2025

For Peloton Interactive 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, Peloton Interactive 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 Peloton Interactive 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 Peloton Interactive 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 Peloton Interactive 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 Peloton Interactive?

Peloton Interactive offers a 401(k) plan that allows employees to save for retirement through pre-tax contributions, helping them build a financial future.

How can employees of Peloton Interactive enroll in the 401(k) plan?

Employees can enroll in the Peloton Interactive 401(k) plan by accessing the benefits portal and following the enrollment instructions provided during their onboarding process.

Does Peloton Interactive match employee contributions to the 401(k) plan?

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

What is the vesting schedule for Peloton Interactive's 401(k) matching contributions?

The vesting schedule for Peloton Interactive's 401(k) matching contributions typically follows a standard schedule, allowing employees to gradually earn ownership of the matched funds over time.

Can employees of Peloton Interactive take loans against their 401(k) savings?

Yes, Peloton Interactive allows employees to take loans against their 401(k) savings, subject to the terms and conditions outlined in the plan documents.

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

Peloton Interactive offers a range of investment options in its 401(k) plan, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

How often can employees change their contribution amounts to the Peloton Interactive 401(k) plan?

Employees can change their contribution amounts to the Peloton Interactive 401(k) plan on a quarterly basis or as specified in the plan guidelines.

What is the minimum contribution percentage for Peloton Interactive's 401(k) plan?

The minimum contribution percentage for Peloton Interactive's 401(k) plan is typically set at 1% of the employee's salary, but employees are encouraged to contribute more if possible.

Are there any fees associated with Peloton Interactive's 401(k) plan?

Yes, there may be administrative fees associated with Peloton Interactive's 401(k) plan, which are disclosed in the plan documents provided to employees.

How can employees track their 401(k) savings at Peloton Interactive?

Employees can track their 401(k) savings at Peloton Interactive by logging into the benefits portal, where they can view their account balance and investment performance.