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Take Advantage Of Your Employer's Open Enrollment Period

Employee Benefits

If your employer offers benefits, you may be receiving a reminder about your upcoming open enrollment period. During the open enrollment period, employees have the option to enroll in benefits for the first time, change coverage amounts on their current plan, or even drop their coverage completely. Each of these decisions can have a significant financial impact, so it’s important to weigh your options carefully. Use the checklist below to be sure you’re making the right selections.

Prep Work

  • Add up your health-related expenses over the past year.
  • Review foreseeable health-related expenses you’re likely to incur in the upcoming year. For example, will you be experiencing new cost from a specific upcoming procedure? Take note of probable medical expenses.

Health Insurance

  • Has the provider network for your plan changed? Are the doctors and specialists that you and your family see still covered?
  • Have the drug or prescription benefits changed?
  • Has your deductible, premium, co-pay, or out-of-pocket maximum changed?

Health Savings Account (HSA)

  • Are you contributing the maximum amount to your HSA to reduce your taxable income?
  • Could you be using the remaining HSA funds to supplement your retirement savings?
  • In 2024, the maximum contribution limits are $4,150 for single plans and $8,300 for family plans. Individuals age 55 and older can make an additional $1,000 catch-up contribution.

Flexible Spending Account (FSA)

  • Are you contributing the maximum amount to your FSA to benefit from the immediate tax savings?
  • Are you taking advantage of your Dependent Care FSA?
  • In 2024, the maximum contribution limits are $3,200 for single plans If the employee’s spouse has a plan through their employer, the spouse can also contribute up to $3,200 to that plan. In this situation, the couple could jointly contribute up to $6,400 for their household. Remember, you either use it or lose it.

Additional Insurance Coverages

  • Do you know what your current disability income insurance employee plan covers? Is it portable? Is the monthly benefit taxable when you receive it? Is it enough?
  • Does your group life insurance coverage meet your family’s needs? Have you updated your beneficiaries recently? Is it enough?
  • What does your current long-term care insurance coverage look like?
  • Does your company offer long-term care insurance for you or your parents or in-laws?

 

Going Beyond Open Enrollment Benefits


Retirement Savings

  • Are you maxing out your pre-tax contributions at $23,000? If you are over 50, have you started making the $7,500 catch up contributions?
  • What’s the maximum contribution match your employer offers?
  • Do you understand the tax advantages of both a 401(k) and Roth 401(k)?
  • Are you maximizing the value of your employer stock options?
  • What are your general financial needs for the near future? Do you have enough?

Beneficiary Review

  • Review your beneficiaries on retirement accounts and insurance policies. Pay particular attention to tax-advantaged accounts such as IRAs. If you don’t name a beneficiary, you risk your account passing to your estate.

Age Change for Children

  • Children up to the age of 26 can be listed as dependents on your healthcare plan. Be sure to update your plan appropriately when they no longer need your coverage.

Expanded Voluntary Benefits
Review options carefully so that you understand the full benefits available to you.

  • Identity Theft Protection - Is it worth it?
  • Prescription Coverage - Do you need it?
  • Pet Insurance
  • Health Club Memberships
  • Legal Services - Are your legal documents up to date?

 

You don’t have to know all of the answers to these questions; you just have to know where to turn for help. Lenox Advisors has the background, experience and extensive network to guide you and your family past potential pitfalls while identifying unique opportunities. Knowledge is power — and in this case, knowledge could save you thousands of dollars by getting you the right benefits.

 

https://www.irs.gov/newsroom/irs-2024-flexible-spending-arrangement-contribution-limit-rises-by-150-dollars
https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-401k-and-profit-sharing-plan-contribution-limits

CRN202510-3187913

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