Open Enrollment Season: Making the Most of Your Benefits

Open enrollment is an opportunity to take a fresh look at your workplace benefits and consider whether your elections still align with your needs and financial goals. While it may be tempting to simply carry over last year’s choices, changes to your health, family, finances and risk comfort can all impact how you choose your benefits.
Beyond health insurance, your employer may offer retirement benefits, savings accounts, insurance coverage and wellness resources that can play an important role in your broader financial plan.

As you review your benefits for the year ahead, here are several considerations to keep in mind:

1. Assess whether a lower health insurance premium is worth the cost
   Even if you are young and healthy, selecting a lower premium option can prove much more costly if the coverage ends up being insufficient or your preferred doctors are out of network. To help evaluate your options, you can use premium calculators, either on HealthCare.gov for federal plans or on other sites for private insurance comparison. Also, if you are married to someone who works at another company, include your spouse’s insurance options in the comparison.
   
   
2. Look for new benefits
   As companies compete in competitive landscape for talent, many are reconsidering the benefits they provide, and how they stack up against other companies in their industry. For example, many companies have added perks such as student loan assistance, pet insurance and legal services to their suite of offerings. Many have also added telehealth programs, which is offered within employer-sponsored medical insurance plans.
   
   
3. Don’t overlook wellness benefits
   Your benefits package may include resources that support your well-being beyond traditional medical coverage. Mental health benefits may include counseling services, employee assistance programs and wellness apps, while other offerings may include gym or fitness stipends, nutrition programs, caregiver support, and other wellness resources. Take time to understand what is available, how each benefit works and whether enrollment or registration is required. Even benefits you have not used in the past may be worth another look as your needs and circumstances change.
   
   
4. Check whether your employer offers Trump Account contributions
   Trump Accounts are a new tax-advantaged savings option designed to support long-term investing for children. Employers may contribute to Trump Accounts for employees’ eligible children, providing another benefit to consider as you review your overall compensation package. If your employer offers this benefit, review the eligibility requirements, contribution amount and any steps needed to participate. Keep in mind that Trump Accounts are intended to complement, rather than replace, other savings strategies for children, so consider how the benefit fits alongside existing accounts and your broader financial plan.
   
   
5. Protect against unexpected health costs
   Now is a good time to also consider what additional insurance coverage you might need. The costs of unexpected health issues, such as from accidents or new diagnoses, can be staggering even for affluent families. Talk to your financial advisor about how to model the financial impact of unexpected medical events and whether to supplement your primary insurance with short- and/or long-term disability policies. As part of this analysis, factor in the cost of lost earnings if you or another member of your household is unable to work.
   
   
6. Make those most out of contributions to employer-sponsored retirement accounts
   Take advantage of the power of tax-deferred compounding returns by — at minimum — contributing enough to your 401(k) or other qualified deferred compensation plan to receive your employer’s maximum match (assuming your company offers one). Better yet, contribute the maximum annual amount allowed under IRS rules for 2026, $24,500 for 401(k) or 403(b) plans and an extra $8,000 (ages 50-59 and 64+) and a “super” catch-up $11,250 (ages 60–63). While this election can usually be changed throughout the year, the open enrollment period offers a good time to review your choices.
   
   
7. Take advantage of Health Savings Accounts (HSA)
   If you choose a high-deductible health insurance plan, you will be eligible for an HSA to help offset out-of-pocket medical expenses. HSAs offer significant, triple-tax benefits. Contributions are tax-deductible, grow tax-deferred and are not taxed when withdrawn to cover eligible health care expenses. Recent legislation expanded HSA eligibility, including for individuals covered by certain bronze and catastrophic health plans and those participating in certain direct primary care arrangements. Rules also permit qualifying telehealth and remote-care services before the deductible without jeopardizing HSA eligibility. Because eligibility requirements vary based on your coverage, review the terms of your health plan before making an HSA election.
   
   
8. Take advantage of Flexible Spending Accounts (FSA)
   A dependent-care FSA allows eligible employees to set aside pre-tax dollars for qualifying dependent-care expenses, such as preschool, before- and after-school programs, summer day camp, and child or adult day care. Recent legislation increased the annual amount that may be excluded from an employee’s income through a dependent-care assistance program. Because contribution limits and employer plan provisions can change, review your employer’s current plan materials when making your annual elections.
   
   
9. Evaluate your nonqualified deferred compensation options
   If you have a nonqualified compensation plan, deferring compensation and the associated tax liability into the future may be advantageous if you do not need the income to fund near-term expenses. But pay careful attention to the following variables:
   
   
   1. The potential for higher future tax rates
      Income deferred through a nonqualified deferred compensation plan generally is taxed when received rather than when earned. The One Big Beautiful Bill Act (OBBBA) made permanent the individual income tax rate structure that had been scheduled to expire after 2025, including the 37% top federal income tax rate. When deciding whether and how much compensation to defer, consider your current tax situation alongside your expected income and tax circumstances when distributions are received. Changes in your income, applicable tax laws or other circumstances could affect the ultimate tax consequences of your election.
   2. The long-term financial prospects for your company
      Nonqualified deferred compensation generally represents an unsecured obligation of your employer. Unlike assets held in a qualified retirement plan, deferred amounts may remain subject to the claims of the company’s creditors. Consider the financial condition and long-term prospects of your employer when deciding how much compensation to defer.
   3. State income tax rules
      Where you expect to live when you receive deferred compensation may also affect the state income tax treatment of your distributions. Federal law generally limits a former state of residence from taxing certain qualifying retirement income received after you move, including certain nonqualified deferred compensation paid over a period of at least 10 years. Because the tax treatment can depend on the structure and timing of the distribution, as well as the laws of the applicable states, consider your expected future residence when making your distribution election, particularly if you anticipate moving between states with different income tax rates.

Open enrollment can feel like another item on your year-end to-do list, but it is also an opportunity to make sure your benefits continue to support you and your family. As your circumstances, goals and employer offerings change, the choices that worked for you in the past may not be the right choices for the year ahead.

Your HR team can help you understand the benefits available to you, and your financial advisor can help you evaluate those choices in the context of your broader financial plan. Before making your elections, consider connecting with your financial advisor to discuss what has changed and how your benefits can work alongside the rest of your financial strategy.

[1] 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500 | Internal Revenue Service. (n.d.). Retrieved August 10, 2026, from https://www.irs.gov/newsroom/401k-limit-increases-to-24500-for-2026-ira-limit-increases-to-7500

[2] Internal Revenue Bulletin: 2025-45 | Internal Revenue Service. (n.d.). Retrieved August 10, 2026, from https://www.irs.gov/irb/2025-45_IRB?utm_source=chatgpt.com