Do These Things to Maximize Your Employee Benefits for the New Year
The end of the year is quickly approaching, which means it’s time to make sure you’re taking full advantage of your employees before time runs out. Many workplace benefits have expiration dates or contribution limits that reset each year, so it’s important to review your benefits package and take action before the start of the new year.
Spend your FSA funds
Flexible spending accounts (FSAs) allow you to set aside pre-tax dollars for qualified health care or dependent care expenses. The catch is that FSAs often have a “use it or lose it” policy, meaning that any unused funds are forfeited at the end of the year. Calculate your expected expenses for the remainder of this year and the beginning of next year while there is still time to incur additional expenses. If you have money left in your FSA, stock up on eligible expenses now before the end of the year .
Maximum HSA Contributions
Like an FSA, a health savings account (HSA) allows you to contribute pre-tax dollars toward medical expenses. The benefit of an HSA is that unused funds roll over from year to year. In 2023, the annual premium limit will be $3,850 for individual coverage or $7,750 for family coverage. Confirm how much you have contributed to date and, if possible, increase your monthly contributions for the rest of the year to reach the annual maximum.
Use your remaining flexible time
Before any end-of-year reset occurs, be sure to use any remaining flex time, work-from-home days, or paid time off provided by your employer. Make appointments, take care of lingering tasks, and ask for time off if your company policy allows it. Since there may be schedule changes later in the year, now is the perfect time to take advantage of flexible scheduling while you still can.
Rethink your retirement savings
Most companies with 401(k) plans have limits on annual contributions to employee salary deferrals: the maximum amount in 2023 is $22,500 if you’re under 50, or $30,000 if you’re 50 or older. Log into your retirement account and determine the gaps between your current savings rate or annual contributions and the legal limits. If you have room to save more before December 31st, contact your HR department to increase your deferment percentage.
Check your benefits for other benefits
There may be other employee benefits or discounts that you haven’t taken advantage of this year. Review new hiring documents or employee handbooks and read all available programs. Keep a close eye on things like gym memberships, continuing education reimbursements, commuting accounts, employee assistance services, tuition discounts and more. Find out what’s available and take advantage of eligible services before January 1st, when eligibility may be revoked.
The end of the calendar year is the ideal time to maximize workplace benefits that expire or have an annual cap. Review all available programs and take appropriate steps to make full use of them now so they don’t go to waste. A little activity this month can result in significant savings and optimized offers that can be carried over into the new year.