Maximize Your Employee Benefits this Open Enrollment Season
Open enrollment is approaching, and this is a great opportunity to optimize the benefits your employer offers. Many individuals rarely revisit benefit elections, potentially overlooking significant perks. Below are a few key benefits to review for your next open enrollment.
Health Insurance & Health Savings Accounts (HSAs)
Health insurance represents one of the most significant benefits available to employees, and because plan options and personal circumstances change over time, reviewing your coverage annually is crucial.
If your employer offers a High-Deductible Health Plan (HDP), this also allows you to contribute to a Health Savings Account (HSA). For 2025, the IRS allows contributions up to:
- Individuals with self-only coverage can contribute up to $4,300
- Families with qualifying coverage can contribute up to $8,550
- Individuals over 55 can contribute an additional $1,000 as catch up
HSA accounts have a triple tax benefit in that contributions are tax deductible, growth is tax deferred, and withdrawals from the plan are tax free if used for qualifying medical expenses. These funds roll over year to year, and the account is portable if you leave your employer.
Insurance Benefits
Most employers offer additional insurance benefits such as life, disability, and accident insurance that can help fill the gap for other policies you may have. Purchasing additional coverage, or including your spouse under the plan, is often a more affordable way to ensure you have adequate coverage for your family versus purchasing an individual policy separately. In many cases, the policy is often portable if you leave your employer.
Long-term disability insurance is one of the most important benefits when it comes to protecting your finances. Disability insurance provides funds to replace lost income should you become disabled and unable to work and can often be costly to obtain on your own.
Dependent Care Flexible Spending Account (FSA)
If you have daycare or other childcare expenses, a Dependent Care FSA can provide additional tax savings. In 2025, you can contribute up to $5,000 per household in pre-tax dollars toward eligible expenses for dependents under age 13.
It’s important to plan carefully as any unused funds will be forfeited at the end of the year and do not carry forward.
Healthcare Flexible Spending Account (FSA)
A Healthcare FSA is another pre-tax benefit that can help manage medical costs, with contributions limits up to $3,300. Withdrawals can be made for qualified medical expenses including over the counter items, prescriptions, and copays. Unlike Dependent Care FSAs, Healthcare FSAs allow for up to $660 rollover into the next plan year, depending on specific plan rules.
Tuition Reimbursement- Professional Development
If you’re thinking about furthering your education, check with your HR department about professional development benefits. Employers can provide up to $5,250 per year in tax-free education assistance under current IRS rules, potentially opening doors for career advancement.
Retirement Savings
Retirement savings can be changed at any time throughout the year; however, open enrollment is a great opportunity to review your participation in your company’s retirement plans. This may include a 401(k) or 403(b), Employee Stock Purchase Plan “ESPP”, or Deferred Compensation Plan.
Take this time to ensure you’re maximizing any company match and maximizing tax benefits available to you. For 2025, the maximum contribution limits for 401(k) and 403(b) plans are $23,500. If you are over 50 you can contribute an additional $7,500, and those between the ages of 60-63 can contribute $3,750 on top of that.
Employee Stock Purchase Plans (ESPP) are often a missed opportunity for many employees. ESPPs allow for the purchase of company stock at a discount through automatic payroll deductions. Because ESPP contributions come directly out of your paycheck, participating can help automate your savings plan and provide an automatic gain at the end of the holding period.
And more!
Some companies also offer legal benefits, long term care insurance, additional childcare savings, and other perks.
If you would like help reviewing your options or need more personalized guidance, we invite you to reach out. We are happy to help you make the most of your compensation and benefits package.