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Vertex Pharmaceuticals Employees, Prepare for Enhanced HSA Benefits in 2025

Healthcare Provider Update: Offers PPO and CDHP plans with HSA options through Blue Benefit Administrators, Kaiser Permanente, and HMSA in Hawaii9. As ACA premiums increase, Vertexs customizable plans and employer HSA contributions provide employees with cost control and flexibility. Click here to learn more

For Vertex Pharmaceuticals 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, Vertex Pharmaceuticals 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 Vertex Pharmaceuticals 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 Vertex Pharmaceuticals 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 Vertex Pharmaceuticals 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 Vertex Pharmaceuticals?

The 401(k) plan at Vertex Pharmaceuticals is a retirement savings plan that allows employees to save a portion of their salary before taxes are deducted.

How can I enroll in the 401(k) plan at Vertex Pharmaceuticals?

Employees can enroll in the Vertex Pharmaceuticals 401(k) plan through the company’s HR portal or by contacting the HR department for assistance.

What is the employer match for the 401(k) plan at Vertex Pharmaceuticals?

Vertex Pharmaceuticals offers a competitive employer match for contributions made to the 401(k) plan, which is designed to help employees maximize their retirement savings.

At what age can I start contributing to the Vertex Pharmaceuticals 401(k) plan?

Employees at Vertex Pharmaceuticals can start contributing to the 401(k) plan as soon as they are eligible, typically upon their date of hire.

How much can I contribute to the Vertex Pharmaceuticals 401(k) plan each year?

The contribution limits for the Vertex Pharmaceuticals 401(k) plan align with IRS guidelines, allowing employees to contribute up to a specified maximum amount each year.

Does Vertex Pharmaceuticals offer a Roth 401(k) option?

Yes, Vertex Pharmaceuticals offers a Roth 401(k) option, allowing employees to make after-tax contributions to their retirement savings.

Can I change my contribution amount to the Vertex Pharmaceuticals 401(k) plan?

Yes, employees can change their contribution amounts to the Vertex Pharmaceuticals 401(k) plan at any time, subject to plan rules.

What investment options are available in the Vertex Pharmaceuticals 401(k) plan?

The Vertex Pharmaceuticals 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles tailored to different risk tolerances.

When can I access my funds from the Vertex Pharmaceuticals 401(k) plan?

Employees can access their funds from the Vertex Pharmaceuticals 401(k) plan upon reaching retirement age, or in certain circumstances such as financial hardship or termination of employment.

How does the vesting schedule work for the Vertex Pharmaceuticals 401(k) plan?

The vesting schedule for the Vertex Pharmaceuticals 401(k) plan determines how much of the employer match you are entitled to keep based on your years of service.