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Making the Most of Open Enrollment: A Guide for Working Professionals Thumbnail

Making the Most of Open Enrollment: A Guide for Working Professionals

Fall isn’t just about cooler weather and shorter days — it’s also open enrollment season for many workplace benefits. For a few short weeks each year, you get the chance to review, update, and optimize your employer-provided benefits. These choices can have a big impact on both your financial health and your overall well-being, so it’s worth taking the time to get them right.

Why Open Enrollment Matters

Your employer’s benefits package is more than just health insurance. It’s an opportunity to align your choices with your financial goals and life circumstances. Whether you’re planning for retirement, protecting your family with insurance, or finding ways to save on taxes, open enrollment is the time to make sure your benefits are working for you.

Key Areas to Review

1. Health Insurance

  • Compare plans (PPO, HMO, HDHP) not just on monthly premiums, but also deductibles, co-pays, and out-of-pocket maximums.
  • If your employer offers a High Deductible Health Plan (HDHP), check if you’re eligible for a Health Savings Account (HSA) — one of the most tax-advantaged savings tools available.

2. Retirement Plan Contributions

  • Review your 401(k) or 403(b) contributions. Are you at least contributing enough to get the full employer match?
  • Consider increasing your contributions if you’ve had a raise or anticipate higher income next year.

3. Flexible Spending Accounts (FSAs) & HSAs

  • FSAs let you set aside pre-tax dollars for healthcare or dependent care expenses.
  • HSAs, paired with HDHPs, not only cover current medical expenses but also allow you to invest for future healthcare needs in retirement.

4. Insurance Coverage

  • Life Insurance: Do you have enough coverage through your employer, or should you supplement with a private policy?
  • Disability Insurance: Often overlooked, but critical if you rely on your income to support yourself or your family.
  • Vision and Dental: Even if you’re healthy, preventive care adds up — coverage may save you money long-term.

5. Other Benefits

  • Employee stock purchase plans (ESPPs), tuition reimbursement, wellness stipends, and commuter benefits are often underutilized perks worth revisiting.

Avoiding Common Mistakes

  • Not reviewing at all: Defaulting to last year’s elections can cost you. Plans and premiums change — and so does life.
  • Overlooking tax advantages: FSAs and HSAs can lower your taxable income.
  • Underestimating coverage needs: Disability insurance, in particular, is often underestimated.

Take Action: Align Benefits With Your Bigger Picture

Open enrollment is more than checking boxes — it’s a chance to bring your workplace benefits in line with your long-term goals. Don’t make decisions in a rush. Review your options, consider how your life has changed, and think about what’s ahead.

And remember: you don’t have to do it alone. As part of partnering with Birch Street Financial Advisors, we can help you weigh trade-offs, maximize tax efficiency, and make sure your choices support your broader financial plan.