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How to Hack Open Enrollment

2 min read

30 sec brief

…and save more Getting the most during open enrollment means more coverage for you (and your family). Hacking open enrollment to save more might seem like a sophisticated strategy, but we will show you a few ways to get more for less. Use these tips to take advantage of open enrollment. Hack away! 

Getting the most during open enrollment means more coverage for you (and your family). Hacking open enrollment to save more might seem like a sophisticated strategy, but we will show you a few ways to get more for less. Use these tips to take advantage of open enrollment. Hack away!

Open Enrollment Hacks

Don't Pay for What You Don't Need

The smorgasbord of benefits offering might encourage you to take all you can get, like an all you can eat buffet. But in this case, you are charged à la carte. That means you are likely paying for every benefit or service you select.

Do your due diligence to figure out what you need. Select those options and ignore the rest. Don't get stuck with 12 months of premiums for something you have no realistic plans to use. Be thoughtful about your benefits selection.

Leverage Tax-Savings

When you select open enrollment benefits don't forget to calculate the tax-saving that accompany them. Here are some examples:

  • Tax-Free Payroll Contributions These remove federal and most state income taxes. That means 25%* more savings. Benefits included:
    • Healthcare premiums
    • 401(k) contributions
    • HSA contributions
    • FSA contributions
    • Commuter contributions
  • Tax-Free Growth Tax-free growth allows your money to grow 100% without paying taxes on that growth. Benefits included:
    • 401(k) and IRA growth
    • HSA growth
  • Tax-Free Distributions – these are rather unique in the benefits space but do factor in with healthcare benefits. Benefits included:
    • HSA and FSA distributions - when used for qualified out-of-pocket medical expenses

Understanding the tax-savings of these benefits means more saving and more money!

Add Free Open Enrollment Options

Take what you can get! If your employer offers free or pre-paid benefits as part of your employment, select them! You might not think you need a short-term disability plan this year, but having it creates peace of mind.

Selecting benefits during open enrollment requires you to evaluate your current benefits, review your new benefits options, and make decisions that get you the most at the lowest cost.

Hacking your way through this year's open enrollment will save you time, money, and even a headache or two. Use these tips to get more of money you are already saving. What you do with that new saving is up to you.

*Assumes combined federal and state income taxes of 25% or more. Please be sure to consult a tax professional as nothing in this post should be considered tax advice.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

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