Open enrollment is just around the corner, presenting a critical opportunity to review and maximize your benefits. Whether you’re new to the process or a seasoned participant, taking the time to get knowledgeable about the options available to you can make a significant difference in your financial and personal well-being.
Open enrollment is the annual period when you can sign up for health insurance and other benefits offered by your employer. It’s the perfect time to evaluate your current coverage, explore new options, and make adjustments to better suit your needs for the upcoming year. Let’s take a quick look at some areas to focus on and review:
1. Health Insurance Plans
- Evaluate options: Compare premiums, deductibles, copayments, and out-of-pocket maximums to ensure you have the best coverage for your needs.
2. HSAs and FSAs
- Consider savings accounts: HSAs (for high-deductible plans) and FSAs help you save pre-tax dollars for medical expenses. HSAs roll over annually, while FSAs typically do not.
3. Dental and Vision Insurance
- Don’t overlook these: Regular check-ups can prevent more significant expenses later. Compare plans to find the best fit.
4. Life and Disability Insurance
- Ensure adequate coverage: Review your current life and disability insurance to make sure your family is financially protected.
5. Retirement Savings Plans
- Maximize contributions: Review your retirement plan to ensure you’re getting any employer match and consider increasing contributions. If your company offers some type of equity compensation, ensure you are analyzing your compensation package and understand the best and most tax efficient way to approach your equity comp.
Now that we discussed some areas to look out for, let’s touch on some steps you can take now in preparation. These include:
1. Review Current Benefits
2. Attend Meetings and Webinars
3. Use Online Tools
4. Consult HR and/or Your Financial Professional
5. Make a Decision and Enroll within the Designated Period
Take advantage of open enrollment to ensure your benefits align with your needs. It’s important to note that the benefits that may be adequate for you and your family may not be those of a colleague or friend, so its crucial to conduct a personalized review and needs analysis. For more personalized advice on optimizing your benefits, reach out to us at info@shermanwealth.com.
