Improving Your Financial Health: Ball Corporation Guide to Leveraging HSAs for Retirement

Healthcare Provider Update: Healthcare Provider for Ball Corporation Ball Corporation's healthcare coverage is primarily provided through Aetna, a well-established insurer known for a range of healthcare plans tailored to meet the diverse needs of employees. Brief Overview of Potential Healthcare Cost Increases in 2026 As we look ahead to 2026, Ball Corporation employees should prepare for significant healthcare cost increases, with many anticipating premium hikes of over 60% in some states. This alarming trend is largely attributed to rising medical expenses, the potential expiration of enhanced federal premium subsidies, and aggressive actions from major insurers. Without congressional intervention to extend these vital subsidies, more than 22 million individuals could face an average increase of 75% in out-of-pocket costs, straining budgets and limiting access to essential healthcare services. It's crucial for employees to proactively plan for these developments to mitigate financial impacts in the coming year. Click here to learn more

Health Savings Accounts (HSAs) are increasingly important tools for strategic retirement planning at Ball Corporation. Coupled with high-deductible health plans (HDHPs), HSAs offer a comprehensive approach to managing healthcare costs while benefiting from tax advantages.  As of 2025, the contribution limits have risen to $4,300 for individual coverage and $8,550 for family coverage, reflecting adjustments for inflation . Additionally, individuals aged 55 and older can make a $1,000 catch-up contribution, further expanding their savings potential.

Understanding HSAs

To qualify for an HSA, one must be enrolled in a high-deductible health plan. These plans generally have lower monthly premiums, which can help offset higher deductible costs. Companies, including Ball Corporation, often make contributions to HSAs, helping employees manage healthcare expenses more effectively.

Unlike flexible spending accounts (FSAs), HSAs do not expire at the end of the year, allowing account holders to accumulate funds over time. Starting at age 65, individuals may withdraw HSA funds for any purpose, with non-medical withdrawals subject to standard income tax.

Tax Benefits of HSAs

HSAs offer valuable tax advantages. Contributions are made with pre-tax dollars, effectively lowering taxable income. Any growth within the account, including interest, dividends, and capital gains, is not taxed. Furthermore, withdrawals used for qualified medical expenses are also tax-free, making HSAs a unique investment vehicle with triple tax benefits.

For 2025, the minimum deductible for HSA-eligible plans is $1,650 for individuals and $3,300 for families. Those who contribute fully to their HSA and cover medical expenses out of pocket can use their HSA similarly to an investment account.  Many HSAs allow investing in options like mutual funds or stocks, including the S&P 500 index, potentially building significant value over time.

Example Scenario: HSA Growth Potential

Consider a 45-year-old couple who consistently contributes to their HSA and invests these funds, aiming for a 7% annual return. If they refrain from using the funds for current medical costs, their HSA could grow to approximately $378,000 by age 65. However, if they need to cover healthcare expenses for chronic conditions like type 2 diabetes and high blood pressure, the account may only reach around $123,000. This example demonstrates how investment and spending choices impact the long-term potential of an HSA.

Open Enrollment and HSA Selection

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As open enrollment approaches, it’s an opportune time for Ball Corporation employees to assess their health coverage options, especially regarding HDHPs and HSAs.  According to a survey by Voya Financial, around three-quarters of participants in HDHPs report better financial outcomes than those enrolled in traditional health plans.

HSAs: More Than Just Tax Savings

The benefits of HSAs extend beyond tax advantages. The ability to carry over unused funds and maintain the account independently of employment status makes HSAs a valuable option for addressing future healthcare costs in retirement. This flexibility allows HSAs to be part of a broader retirement strategy, helping individuals navigate future medical costs effectively.

HSAs offer Ball Corporation employees a structured way to prepare for retirement healthcare needs. Through careful management of contributions and withdrawals, individuals can enhance their financial readiness for retirement. By building HSA funds now, employees can better position themselves to address healthcare costs as they arise.

A recent AARP survey conducted in June 2024 found that 58% of individuals aged 60 and older were unaware that HSAs could be used for extended life insurance and certain medical costs.  This insight emphasizes a substantial opportunity for retirees to use HSAs beyond typical healthcare expenses, allowing them to preserve other retirement funds for essential living expenses and leisure.

Think of an HSA as a versatile toolkit. Just as a well-prepared toolkit is essential for home upkeep, an HSA is invaluable for managing current and future healthcare expenses. By contributing to an HSA over time, benefiting from its tax advantages, and letting it grow, individuals build a resource ready to address both unexpected and regular healthcare needs. This approach helps maintain a strong financial foundation, providing peace of mind for a fulfilling retirement.