Maximizing Workplace Benefits

It’s fall- the season of pumpkin spice, flannel shirts, and open enrollment? This time of year it is common for companies to allow employees to select what benefits programs they want to participate in for the coming year. Unfortunately, people don’t spend near enough time reviewing the options available to them and as a result, may be missing out on great opportunities! The following tips will help you maximize your benefits.

Review your health insurance options. Compare the premiums, deductibles, and coverage for any health conditions you have. Pay special attention to the deductible and make a plan to have those funds available in the event of medical expenses. Confirm that your healthcare providers participate in the plan. Qualified high deductible plans allow you to contribute to a Health Savings Account. These accounts are referred to as triple tax exempt. Contributions are not taxed, growth is tax deferred, and distributions for qualified medical expenses are tax free.

Increase retirement contributions by a few percentage points and enroll in automatic contribution rate increases. Before you know it, you will be saving more than you thought possible!

The average worker has a 30% chance of being disabled during his or her career. If your company provides disability insurance coverage, take some time to understand whether it is short term or long term coverage, the definition of disability, and how much of your income would be protected. Group coverage is often very affordable.

Many organizations provide a base amount of life insurance to their employees. Coverage beyond that can often be purchased in increments relative to an individual’s salary (for example, 3 times one’s salary). Medical underwriting (if required) may not be as comprehensive as purchasing a personally owned policy. Keep in mind that not all companies will offer life insurance so it is a good plan to also have coverage outside of your employer in the event you change jobs.

Do you have expenses for child care services? How about care expenses for adult care for your aging parents? A Dependent Care FSA allows you to save pre-tax funds that can then be used to pay for qualified out of pocket dependent care. Using pre-tax dollars rather than after-tax lowers your overall tax bill and leaves you with more money in your pocket!

Some companies offer group legal coverage. These plans provide access to attorneys who provide a wide range of legal services. Planning on updating your will this year? Compare the cost of enrolling in the group legal plan with the cost of meeting with an attorney on your own.

Do you take public transportation to work or pay for parking? A Commuter Account allows employees to pay these fees with pre-tax dollars. This means more take home money!

Each company provides a unique offering of benefits available to their employees. Take the time to understand the available options so you can be confident you make the best selections for you and your family.

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