New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Xerox Holdings Employees, Prepare for Enhanced HSA Benefits in 2025

Healthcare Provider Update: Healthcare Provider for Xerox Holdings Xerox Holdings provides its employees with access to health insurance plans primarily through a partnership with major national insurers. Prominent health insurance providers include UnitedHealthcare, Anthem, and others, depending on the specific plan and state location. Employees are encouraged to review their options during open enrollment to choose the plan that best suits their healthcare needs. Projected Healthcare Cost Increases in 2026 The landscape for health insurance premiums in 2026 is disconcerting, especially for Xerox Holdings employees relying on plans from the Affordable Care Act (ACA) marketplace. In many states, premium increases could surpass 60%, primarily due to the anticipated expiration of enhanced federal premium subsidies, rising medical costs, and aggressive rate hikes from insurers. Consequently, individuals enrolled may see their out-of-pocket costs rise dramatically, with estimates suggesting an overall increase in premiums by as much as 75% for nearly 92% of marketplace enrollees. This combination of factors makes proactive financial planning essential for employees to navigate the upcoming challenges in healthcare expenditures effectively. Click here to learn more

For Xerox Holdings 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, Xerox Holdings 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 Xerox Holdings 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 Xerox Holdings 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 Xerox Holdings 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 type of retirement savings plan does Xerox Holdings offer to its employees?

Xerox Holdings offers a 401(k) retirement savings plan to its employees.

How can employees of Xerox Holdings enroll in the 401(k) plan?

Employees of Xerox Holdings can enroll in the 401(k) plan through the company’s online benefits portal or by contacting the HR department.

Does Xerox Holdings match employee contributions to the 401(k) plan?

Yes, Xerox Holdings provides a matching contribution to the 401(k) plan, subject to certain limits.

What is the maximum percentage of salary that employees can contribute to their 401(k) at Xerox Holdings?

Employees at Xerox Holdings can contribute up to 100% of their eligible compensation, subject to IRS contribution limits.

When can employees of Xerox Holdings start contributing to their 401(k) plan?

Employees of Xerox Holdings can start contributing to their 401(k) plan after they have completed their eligibility requirements, typically within the first few months of employment.

What investment options are available in the Xerox Holdings 401(k) plan?

The Xerox Holdings 401(k) plan offers a variety of investment options, including mutual funds, stocks, and bonds, allowing employees to diversify their portfolios.

Can employees of Xerox Holdings take loans against their 401(k) savings?

Yes, Xerox Holdings allows employees to take loans against their 401(k) savings, subject to specific terms and conditions.

What happens to the 401(k) plan if an employee leaves Xerox Holdings?

If an employee leaves Xerox Holdings, they can choose to roll over their 401(k) balance to another retirement account, withdraw the funds, or leave the money in the Xerox Holdings plan, subject to plan rules.

Are there any fees associated with the Xerox Holdings 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with the Xerox Holdings 401(k) plan, which are disclosed in the plan documents.

Can employees of Xerox Holdings change their contribution rates to the 401(k) plan?

Yes, employees of Xerox Holdings can change their contribution rates at any time, subject to the plan’s guidelines.

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

Xerox offers both a traditional defined benefit pension plan and a defined contribution 401(k) plan. The defined benefit plan provides retirement income based on years of service and final average pay. The 401(k) plan features company matching contributions and various investment options, including target-date funds and mutual funds. Xerox provides financial planning resources and tools to help employees manage their retirement savings.

Xerox provides both RSUs and stock options as part of its employee compensation. RSUs vest over time, converting into shares, while stock options allow employees to purchase shares at a fixed price.

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For more information you can reach the plan administrator for Xerox Holdings at 45 Glover Ave. PO Box 4505 Norwalk, CT 6856; or by calling them at 972-420-2354.