As open enrollment season approaches, many employees are faced with the annual task of selecting their employee benefits. This process can be overwhelming, with numerous options to consider and important financial decisions to make. The team at Covenant Wealth Strategies is here to help you navigate the complex landscape and make informed choices.
Understanding Your Current Benefits Package
The first step in making informed decisions about your employee benefits is understanding your current package. We work to educate our clients and review existing benefits together, including but not limited to: retirement plans, health insurance, life insurance, disability coverage and executive compensation plans. We can discuss the specifics of each benefit, including: deductibles, premiums, coverage limits, and contribution limits for retirement plans.
Did you know that some retirement plans have an after-tax provision? For these types of plans, employees can make contributions above the standard yearly 401(k) limits on an after tax basis. If you aren't sure if your retirement plan has this feature, we encourage you to talk to your advisor.
Each type of employee retirement plan has its own unique benefits and rules. Our team of experienced professionals can educate and discuss the features of 401(k)s, 403(b)s, SEP IRAs, Roth IRAs, Traditional IRAs, SIMPLE IRA, Defined Benefit Plans, Profit Sharing Plans and 457bs as applicable to help you make the most of your benefits.
Health Insurance Options
Another important part of an employee benefit plan includes health insurance. During open enrollment, you will have the opportunity to explore various health plans. Our team can guide you through the differences between these plans to help you answer the question, "What is an Health Maintenance Organizations (HMOs), Preferred Provider Organizations (PPOs), and High Deductible Health Plans (HDHPs)?" We can discuss variables such as premiums, deductibles, co-pays, and coverage networks to help you chose the plan that fits your needs.
Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs)
FSAs and HSAs are valuable tools for managing healthcare expenses, and they can help reduce your taxable income.
A Flexible Spending Account (FSA) is a tax-advantaged account that allows employees to set aside a portion of their pre-tax income to pay for qualified medical expenses, such as co-pays, deductibles, and eligible healthcare items. These funds must be used within the plan year or a grace period or they may be forfeited.
Anyone enrolled in a high deductible health plan that is HSA-qualified can set-up an HSA and benefit from the tax advantage. HSAs are an increasingly popular tax-favored benefit for workers and their families. If you haven't contributed yet this year, there is still time.
Higher Health Saving Account (HSA) Limits In 2023
Open enrollment is an opportunity to make informed and educated decisions about your employee benefits that can significantly impact your financial well-being and future. We want to empower you with the knowledge to help you navigate this process with confidence. Together, we can ensure that your benefit selections align with your financial goals to provide you with peace of mind.
If you're ready to make the most of your employee benefits, Contact Us to schedule time with your advisor. Your financial future is important, and we are here to help you make the most of it.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax situation with a qualified tax advisor.