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

Big Tax Breaks for Health Savings Accounts Get Even Better for Corteva Employees

'With recent tax rule changes, Corteva employees now have expanded opportunities to optimize their health care savings through health savings accounts (HSAs), which provide tax-free growth, tax-free withdrawals for medical expenses, and enhanced flexibility, making them an essential tool for retirement planning.' — Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement.

'Recent changes to health savings accounts (HSAs) offer Corteva employees valuable opportunities to not only save for medical expenses but also to take advantage of tax-free growth and withdrawals, making HSAs an indispensable tool for securing long-term health care savings.' — Patrick Ray, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How health savings accounts (HSAs) work and their tax advantages.
Recent tax changes that expand the benefits of HSAs for Corteva employees.
The flexibility and unique features of HSAs, including contributions, withdrawals, and new eligible uses like fitness-related expenses.

For many years, individuals looking to combine health insurance with significant tax benefits have found health savings accounts (HSAs) compelling options. Over 60 million Americans currently use HSAs ¹ to take advantage of tax benefits and save for medical costs. The proposed tax and spending bill, approved by the House of Representatives in May 2025, could further enhance the benefits of these accounts. These changes, expected to be approved by the Senate in June, might expand the availability of HSAs to an additional 20 million Americans, marking the largest expansion since the program's creation in 2004.

Corteva employees, especially retirees and older workers, will greatly benefit from this HSA expansion. The new amendments aim to simplify the regulations, clarify unclear clauses, and allow previously prohibited uses, such as paying for gym memberships. These improvements could offer greater flexibility and provide an excellent opportunity to save money for long-term health care, making a significant impact for those nearing retirement or already retired.

How Health Savings Accounts Work

To qualify for an HSA, individuals must have a high-deductible health insurance plan, which typically requires the policyholder to pay a larger share of medical expenses up front compared to standard health insurance. When combined with an HSA, the individual or employer can make tax-deductible contributions to offset these higher costs. The HSA allows for tax-free investments and growth, as well as tax-free withdrawals for approved medical expenses.

The maximum tax-deductible contribution to an HSA for 2025 is $4,300 for individuals and $8,550 for family coverage. In addition, a $1,000 'catch-up' contribution is available for individuals aged 55 and older. This presents a prime opportunity for Corteva employees approaching retirement to increase their health care savings. HSA adoption is expected to grow significantly, with total assets expected to reach $147 billion by the end of 2024, up from $30 billion in 2015. ²

The triple tax benefits of HSAs distinguish them from other retirement savings accounts like 401ks and IRAs. Contributions to an HSA lower taxable income, funds grow tax-free, and withdrawals for approved medical expenses are tax-free. In contrast, withdrawals from 401ks and IRAs are taxable as income.

The Recent Modifications and Their Effects

Ten significant modifications in the new tax law will benefit individuals who use HSAs, particularly older Americans. Currently, Medicare beneficiaries enrolled in Medicare Part A at age 65 are restricted from contributing to an HSA. The new proposal allows these individuals to continue contributing to their HSA if they retain their employer health insurance. This change could be especially beneficial for Corteva employees who choose to remain on the company health plan rather than enrolling in Medicare.

Additionally, the new bill will make certain Affordable Care Act (ACA) plans, such as Bronze and Catastrophic policies, eligible for HSA benefits. This will benefit both younger employees who opt for catastrophic coverage under the ACA and older employees who retire before age 65 and use ACA plans until they become eligible for Medicare.

One of the most anticipated changes is the ability to use HSA funds for fitness-related expenses, such as gym memberships. Currently, HSA funds cannot be used for fitness-related activities, but the new law would allow tax-free withdrawals for these costs, with annual limits of $500 for individuals and $1,000 for families. This change encourages employees to focus on preventative health care, potentially reducing long-term medical expenses.

Other Advantages and Characteristics of HSAs

HSAs offer significant flexibility compared to other retirement savings accounts. Withdrawals can be taken years after the expenses are incurred, as long as proper documentation is available. This makes HSAs a great option for employees looking to save for future health care costs without needing to use the funds immediately. Additionally, after age 65, individuals can withdraw HSA funds for non-medical expenses, although these withdrawals are taxable as income.

Corteva employees will also benefit from the option to make family contributions to HSAs. Children under the age of 26 who are covered by their parents' health insurance may make contributions to their own HSA, even if they are no longer dependents. This allows families to provide long-term support for medical expenses, helping to build a more comprehensive health care savings plan for future generations.

In Conclusion

For Corteva employees looking to save for health care expenses in retirement, HSAs offer a flexible and tax-efficient way to do so. The recent legislative changes, including expanded eligibility and enhanced benefits, will make it easier for more employees to take full advantage of these accounts. With higher contribution limits, the ability to use HSA funds for fitness-related costs, and continued tax-free growth, HSAs present a powerful tool for retirement savings.

By adopting these changes, Corteva employees can optimize their health care savings and prepare for medical expenses in retirement. Whether through increased contribution limits, expanded eligibility, or greater flexibility in how funds can be used, these modifications offer new opportunities for employees to plan for their future health care needs.

The proposed changes also include the option for spouses to contribute to a shared HSA, beginning in 2026. This is a major benefit for older couples planning for retirement, as it allows them to pool their resources and take full advantage of the catch-up contributions. With these new rules, Corteva employees can further streamline their health care savings strategy, preparing for both immediate and long-term needs.

Featured Video

Articles you may find interesting:

Sources:

1. The Wall Street Journal, 29 May 2025, pp. A1–A2. https://www.wsj.com/personal-finance/taxes/hsa-2025-changes-6d6314eb

2. Devenir, 2 April 2025. https://www.devenir.com/devenir-report-shows-hsa-assets-reach-nearly-147-billion-by-year-end-2024/

Other resources:

1. U.S. Department of the Treasury, Jan. 2025, pp. 1–15. https://www.irs.gov/publications/p969

2. HealthEquity, Nov. 2024, pp. 1–10. https://www.healthequity.com/library/hsas-medicare-and-retirement-savings

4. Fidelity Investments, 2025, pp. 1–5. https://www.fidelity.com/viewpoints/wealth-management/hsas-and-your-retirement

5. The Motley Fool, 1 Nov. 2023, pp. 1–3. https://www.fool.com/retirement/2023/11/01/4-surprising-hsa-benefits-that-all-retirees-should/

How does Corteva Agriscience determine the eligibility criteria for employees to participate in the Pension and Retirement Plan, and what implications does this have for employees who were hired before or after January 1, 2007? Specifically, in what ways could this eligibility impact employees looking to retire within the next few years as they assess their planned benefits?

Eligibility Criteria: Employees at Corteva Agriscience are eligible to participate in the Pension and Retirement Plan based on their hire date. Those hired before January 1, 2007, are generally eligible for the plan, while those hired afterward are excluded. This eligibility distinction significantly affects employees planning to retire in the next few years, as those hired before 2007 may be able to rely on pension benefits in addition to other savings(Corteva_Agriscience_Pen…).

What are the different methods available for calculating retirement benefits under Corteva Agriscience's Pension and Retirement Plan? In particular, how do these calculations accommodate variations in years of service and average monthly compensation, and what considerations must employees account for when estimating their final retirement benefits?

Methods for Calculating Retirement Benefits: Corteva Agriscience offers different methods to calculate retirement benefits, including Formula A, B, and C. These formulas consider factors such as years of service and average monthly compensation. The formulas accommodate variations in service years, and employees must evaluate which formula provides the highest benefits based on their individual circumstances, including any service accrued before the Benefit Freeze Date(Corteva_Agriscience_Pen…).

How does Corteva Agriscience address early retirement options for employees, and what factors contribute to the potential reduction of pension benefits for those opting for early retirement? Analyze the balance between the desirability of early retirement and the financial implications it entails for employees at Corteva Agriscience.

Early Retirement Options: Employees may opt for early retirement, typically available from age 50 with 15 years of eligibility service. However, retiring early could reduce pension benefits based on a percentage reduction for each year before normal retirement age. Employees must carefully balance the attractiveness of early retirement with potential reductions in their pension benefits(Corteva_Agriscience_Pen…).

In what ways does Corteva Agriscience ensure that employees understand their rights and options regarding survivor benefits? What steps should employees take to designate beneficiaries effectively, and how might the choice of survivor benefit options affect long-term financial security for families after an employee's death?

Survivor Benefits: Corteva Agriscience provides survivor benefits, including options like joint and survivor annuities. Employees can designate a spouse or other beneficiaries to receive benefits after their death, ensuring long-term financial security for their families. Employees should regularly update beneficiary information and carefully consider how their choice of survivor benefits impacts their family’s financial security(Corteva_Agriscience_Pen…).

How does Corteva Agriscience's pension plan accommodate transfers between affiliated companies? Specifically, what rules govern the continuity of benefits, and how might a transfer impact the benefits accrued under the Pension and Retirement Plan, particularly for those moving between different titles of the plan?

Transfers Between Affiliated Companies: The pension plan allows for the continuity of benefits when transferring between Corteva’s affiliated companies. Transfers after specific dates between titles (e.g., DuPont, Pioneer) continue to earn benefits under the initial plan, which helps employees preserve their accrued benefits when moving between titles within the company(Corteva_Agriscience_Pen…).

What strategies can employees at Corteva Agriscience employ to maximize their retirement savings given the current limits set by the IRS for 2024? Discuss the potential implications of these limits on employee contributions and how the pension plan can work in conjunction with the employees' broader financial planning.

Maximizing Retirement Savings: Employees can maximize their retirement savings by contributing the maximum allowed under IRS limits for 2024. Since the pension plan is a defined benefit plan, it works alongside personal savings and the Retirement Savings Plan to provide comprehensive retirement support. Strategic contributions to 401(k) and other savings vehicles can complement the pension benefits(Corteva_Agriscience_Pen…).

How does Corteva Agriscience manage the funding of its Pension and Retirement Plan to ensure that it meets current obligations? Additionally, what role do anticipated changes in employee demographics play in shaping Corteva's approach to future pension fund viability?

Pension Funding and Viability: Corteva Agriscience manages its Pension and Retirement Plan by monitoring funding levels to meet obligations. Anticipated changes in employee demographics, such as increasing retirements, shape the company’s strategy to maintain long-term pension viability and ensure that benefits are funded adequately(Corteva_Agriscience_Pen…).

What are the potential benefits and limitations of participating in Corteva Agriscience's Pension and Retirement Plan for employees nearing retirement, and how do those factors influence their decision-making process regarding when to retire?

Benefits for Employees Nearing Retirement: Employees nearing retirement may benefit from Corteva Agriscience’s plan if they qualify under the eligibility criteria. However, the plan's limitations, including the Benefit Freeze Date and early retirement reductions, may influence their decision on when to retire. Employees must weigh these factors when assessing their overall retirement strategy(Corteva_Agriscience_Pen…).

How can employees contact Corteva Agriscience to gain further insight or clarification regarding their benefits under the Pension and Retirement Plan? What resources does Corteva provide to facilitate communication and ensure that employees are well-informed about their retirement options?

Contacting Corteva for Clarification: Employees can contact Corteva’s pension recordkeeper for further clarification on their benefits by reaching out to the contacts listed in the plan’s summary. Corteva provides resources like the retirement kit to help employees understand their options(Corteva_Agriscience_Pen…).

What legal and administrative steps must employees at Corteva Agriscience take when they experience changes in employment status or when filing claims related to their pension benefits? How does the administrative structure of the Pension and Retirement Plan influence these processes, and what resources are available to assist employees in navigating them?

Legal and Administrative Steps: Employees must notify the Pension and Retirement Plan administrator about changes in employment status and follow formal procedures when filing claims. Administrative processes are governed by plan-specific rules, and resources like Corteva Connection are available to assist employees through these processes(Corteva_Agriscience_Pen…).