It is time for open enrollment again. This is a great time to adjust your benefits and the amounts that you put into your flexible health care savings and dependent care savings accounts. You will want to carefully consider the changes that you make. You may decide to discontinue some benefits or you may decide it is time to pick up a few extra policies.
When it comes to your flexible health savings account you should take into account how much money you spent on finances last year. Then you should look at any major expenses from last year that you will not be repeating and adjust your expenditures accordingly (an appendectomy or other emergency). You will then need to look at what you are planning to have happen this year. You may be expecting a new baby or planning on having an elective surgery and adjust your expenditures up. You need to balance this amount carefully, because any money that you do not spend will be lost. While you are thinking about it, you may want to use up any money that you have not already used in this account. If you have children in glasses this is an excellent way to do that.
When it comes to your flexible dependent care expenses you need to look at how your daycare situation is going to change. If you have a child entering kindergarten in the fall you will need to put less money in. Additionally if you are planning on having another child you will need to put more money into the account.
As you consider the other benefits available to you, be careful about choosing options that will benefit you the most. Some dental plans cost as much or more than paying for dental care out of pocket, since they may have yearly limits put on them. Similarly, you may find better rates on long-term care and life insurance through other sources. It is your responsibility to carefully consider all the options available to you.
Related Articles:
Take Advantage of Flexible Spending Accounts