Instrumental Wealth Blog

Key Considerations for Company Benefits Selection & Open Enrollment

Written by David Silver, CFP®, CEPA® | November 6, 2024

Our October 31st Key Considerations for Company Benefits Selection & Open Enrollment webinar was hosted by David Silver, CFP®, CEPA® and Drew Allen, CFP®, RICP®, CEPA, ChFC®, CLU®. After a decent Dad Joke for Halloween, we dove into an overview of what to look for when you enroll in company benefits. 

 

Watch the full video or check out our summary below. 

Open Enrollment Webinar Table of Contents:

 

Health Insurance: HMO vs. PPO and HDHPs with HSAs (02:58)

All graphs and charts are for illustrative purposes only.

  • HMO vs. PPO: consider cost difference, flexibility, and visit frequency
  • HMO may be more cost-effective, but PPO may offer more provider options
  • High Deductible Health Plans (HDHPs) vs. Basic Plans: Based on individual needs
  • Health Savings Account (HSA): Your plan must be deemed high-deductible to get an HSA
  • Review options from both employers

 

Ancillary Benefits: Vision, Dental, & FSAs (14:23)

All graphs and charts are for illustrative purposes only.

  • Take vision and dental if employer-provided or deeply discounted
  • Compare premium costs vs. out-of-pocket expenses if self-paying
  • FSAs must be used within the year with some carryover exceptions
  • Dependent care FSAs can be used for childcare and early medical expenses

 

Protection Benefits: Life Insurance & Disability Insurance (22:27)

All graphs and charts are for illustrative purposes only.

  • Group term life insurance over $50,000 has taxable premiums
  • Consider individual life insurance if planning to leave your employer
  • An emergency fund strategy might be an option instead of short-term disability insurance
  • Long-term disability typically covers 60% of base salary with caps

 

Retirement Planning: Secure Act 2.0, Roth vs. Traditional IRA (26:51)

All graphs and charts are for illustrative purposes only.

  • 2025 projected increase of $500 for basic 401(k) contribution limits
  • Special catch-up provision for workers over 60 (projected $11,250)
  • Mega backdoor Roth allows additional post-tax contributions
  • Traditional IRA vs. Roth IRA decisions based on current and future tax situations

 

Additional Benefits: Legal Plans and Identity Theft Protection (33:11)

All graphs and charts are for illustrative purposes only.

  • Legal plans beneficial for basic estate planning and property questions
  • Identity theft protection is increasingly important with data breaches
  • Compare group rates to private market options
  • Consider actual usage likelihood before enrolling

 

Q&A (35:07)

  • HSA strategies with family health expenses
  • Contact insurance carriers directly for specific coverage questions
  • Document all conversations with insurance companies
  • HR directors should serve as the first point of contact for benefit questions

 

If you have questions about your benefits enrollment options, please contact us. 

 

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