Hershey Employees, Prepare for Enhanced HSA Benefits in 2025

The IRS has announced the new health savings account (HSA) contribution limits for 2025, reflecting an inflation-adjusted increase. Individuals with self-only health coverage will see their contribution cap rise from $4,150 in 2024 to $4,300 in 2025, while the maximum for families will increase from $8,300 to $8,550.

HSAs offer a triple tax advantage—contributions are tax deductible, the assets within the account grow tax-free, and withdrawals for approved medical expenses are also tax-free. These features make HSAs an effective tool for managing healthcare costs.

To be eligible for an HSA, you must be enrolled in a high-deductible health plan. Starting in 2025, the IRS stipulates that these plans must have a minimum deductible of $1,650 for individual coverage and $3,300 for family coverage.

Despite these benefits, a 2023 survey by the Plan Sponsor Council of America found that only 19% of HSA account holders invest their funds; the majority keep their savings in cash, potentially missing out on significant growth opportunities.

The IRS will also update the catch-up contribution limit for Hershey employees aged 55 and older later this year, maintaining the $1,000 catch-up contribution for now.

Understanding and utilizing HSAs can greatly enhance your financial strategy, particularly with the evolving landscape of healthcare costs and retirement planning. Prompt decisions in personal finance, such as converting to a Roth IRA or drafting a will, are not merely financial actions but critical life planning steps.

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For Hershey employees nearing retirement, it’s important to note that HSA funds can be used to pay for Medicare premiums once you reach age 65. This includes premiums for Medicare Advantage plans and Parts B and D, although Medigap premiums are not eligible for HSA expenditure. With Medicare not covering all medical expenses, strategically using HSAs to fund these costs can optimize your healthcare spending in retirement. A 2022 study by Fidelity Investments estimated that medical expenses for a retired couple would amount to approximately $315,000 after taxes.

Consider your health savings account (HSA) as an indispensable gadget in your financial toolkit. Just as upgrading to a new smartphone expands your capabilities, enhancing your HSA contribution limits for 2025 equips you with more tools to effectively manage and invest in your healthcare needs. Contributing to your HSA is akin to downloading a powerful app that safeguards your health while offering triple tax benefits: deductions on contributions, tax-free growth, and tax-free withdrawals for qualifying medical expenses. This ensures your health coverage remains as current and efficient as the latest technological advancements, making your HSA a vital component of your Hershey retirement planning strategy.

What is the Hershey 401(k) plan?

The Hershey 401(k) plan is a retirement savings plan that allows employees to save for their future by contributing a portion of their salary on a pre-tax or post-tax basis.

How does Hershey match employee contributions to the 401(k) plan?

Hershey offers a matching contribution to the 401(k) plan, typically matching a percentage of employee contributions, up to a certain limit.

When can employees at Hershey enroll in the 401(k) plan?

Employees at Hershey can enroll in the 401(k) plan during their initial onboarding period or during specific open enrollment periods throughout the year.

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

Hershey's 401(k) plan provides a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to help employees diversify their retirement savings.

Can employees at Hershey take loans against their 401(k) savings?

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

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

The vesting schedule for Hershey's 401(k) matching contributions typically follows a graduated schedule, meaning employees earn ownership of the match over a specified period of service.

How can Hershey employees access their 401(k) account information?

Hershey employees can access their 401(k) account information through the company's employee benefits portal or by contacting the plan administrator.

What happens to a Hershey employee's 401(k) if they leave the company?

If a Hershey employee leaves the company, they can choose to roll over their 401(k) balance to another retirement account, cash out, or leave the funds in the Hershey plan if eligible.

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

Yes, there may be fees associated with Hershey's 401(k) plan, such as administrative fees or investment management fees, which are disclosed in the plan documents.

How does Hershey educate employees about the 401(k) plan?

Hershey provides educational resources, workshops, and one-on-one consultations to help employees understand their 401(k) options and make informed decisions.

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

Hershey Employee Pension Plan: Name of Plan: Hershey Company Pension Plan. Pension Formula: Hershey's pension formula typically involves a defined benefit formula based on years of service and final average salary. However, specific details about the formula can be complex and may require accessing detailed plan documents. Years of Service and Age Qualification: Generally, eligibility for the pension plan requires a certain number of years of service and reaching a specific age. The details can vary depending on the plan's provisions for different employee groups. Qualification Criteria: Typically, employees must reach a specific age (often 55 or older) and have a minimum number of years of service (such as 5 or 10 years) to qualify for full pension benefits. Hershey 401(k) Plan: Name of Plan: Hershey 401(k) Savings Plan. Qualification for Plan: Employees are usually eligible to participate in the 401(k) plan from their date of hire. Contributions are made through payroll deductions, and Hershey may offer matching contributions based on the employee’s contribution rate. Contribution Limits: The plan generally follows IRS limits for employee contributions and employer matching contributions.

Hershey announced a series of organizational changes aimed at streamlining operations and improving efficiency. This includes a reduction in workforce as part of a broader restructuring effort. The company stated that these measures are necessary to adapt to changing market conditions and to position itself for future growth. The layoffs and restructuring are a response to the current economic climate, which demands greater agility and cost management. Given the evolving economic and political landscape, staying informed about these changes is crucial for understanding their impact on the company's strategic direction and employee relations.

Stock Options: Hershey offers stock options as part of its employee compensation packages. The options are typically granted to senior executives and key employees based on performance metrics and tenure. (Source: Hershey 2022 Annual Report, p. 58) RSUs: Restricted Stock Units are granted to employees as a form of long-term incentive. RSUs at Hershey are usually awarded to senior management and high-potential employees, vesting over a period of time. (Source: Hershey 2023 Proxy Statement, p. 34) Eligibility: Hershey's stock options and RSUs are generally available to senior executives, directors, and sometimes high-performing employees. These incentives are designed to align employee interests with company performance. (Source: Hershey 2024 Form 10-K, p. 45)

Employee Reviews: Employees have noted positive aspects of Hershey’s health benefits, including the comprehensive nature of their health coverage and wellness programs. However, there have been occasional comments about the high costs associated with some of the plans. Recent Changes: There has been no significant news about major changes to Hershey’s health benefits from employee reviews on Glassdoor.