The annual open enrollment period is a critical time to assess your benefits needs. Besides considering renewing or changing your healthcare and dental plans, please consider the other potential benefits offered by your company including:
- Whether a high deductible healthcare plan (HDHP) with a Health Savings Account (HSA) is appropriate. HSAs provide an excellent vehicle for healthcare saving/investing for long term growth while obtaining a tax deduction, having assets grow tax free and withdrawing tax free. However, a high deductible healthcare plan may not be for everyone.
- Disability income protection coverage – evaluate the benefit offered by your company should you become disabled and consider whether it makes sense for you to pay the premium. Why would you want to consider paying the premium? Well, if the company pays the premium, then the benefit would be taxable to you whereas if you pay the premium, the benefit is tax free.
- Life Insurance – consider what your company offers but also consider whether that benefit would end if you are no longer employed there. If not portable, then evaluate if you have sufficient death benefits like term life insurance for protecting your family.
- Assess your overall financial wellness during this timeframe:
- 401(K) or 403(b) Retirement plans
- Am I contributing enough/too much? What is the company match?
- Should I use the Regular 401(k) or Roth 401(k) option? Or both?
- Am I on target to meet my retirement goals?
- How am I investing my contributions?
- Revisit your emergency fund balance
- 3 – 6 months of required expenses
- Brokerage account
- Education for children or grandchildren
- Determine approach to saving for children’s education
- Evaluate and/or open a 529 plan to save for college
- Paying for college options
- 401(K) or 403(b) Retirement plans
- Also, consider other benefits which may be valuable from a work/life balance including:
- Health and fitness benefits
- Charity and/or volunteering opportunities
- Continuing education
It can be daunting to review benefits and make the selections during open enrollment. If you have any questions or want us to review your benefits, please contact us.