Open enrollment is more than a chance to review your health coverage. It’s also an opportunity to make decisions that can affect your budget, taxes and long-term financial wellness the following calendar year.
Before enrollment begins, take time to look at how you used your benefits this year and where your money may go next year. A little planning now can help you make the most of tax-advantaged accounts, prepare for expected expenses and choose benefits that support your financial goals.
Start With Financial Benefits
Many workplace benefits can help you manage costs you may already expect to pay, including healthcare, childcare and retirement savings. Some accounts let you set aside money before taxes, which may lower your taxable income1 while helping you plan ahead.
As you review your options, focus first on the benefits that can have the biggest impact on your spending and saving.
Use Tax-Advantaged Accounts To Plan Ahead
Tax-advantaged accounts can help stretch your money because contributions usually come out of your paycheck before taxes. That means you may be able to use pre-tax dollars for eligible expenses instead of paying those costs with after-tax income.1
Health Savings Account (HSA)
If you're enrolled in an HSA-eligible high-deductible health plan, you may be able to contribute to an HSA. Unused money rolls over from year to year, and the account stays with you if you change employers.
For 2027, contribution limits are:
- $4,500 for self-only coverage.
- $9,000 for family coverage.
- An additional $1,000 catch-up contribution for individuals aged 55 and older.
Healthcare Flexible Spending Account (FSA)
A Healthcare FSA can help you budget for eligible medical, dental and vision expenses. The official contribution and carry-over limits are yet to be determined for 2027.
For 2026, the contribution limit is $3,400. Some plans allow limited carryovers, while others may require you to use available funds within the plan year. For example, the carry-over limit into 2027 is $680. Review your plan details before making your election.
Dependent Care FSA
If you pay for childcare or certain dependent care expenses so you can work, a Dependent Care FSA may help offset those costs. Eligible expenses may include childcare, preschool, before- and after-school care, day camps and certain adult-dependent care services.
For 2027, the limits are $7,500 per household for single filers and married couples filing jointly, and $3,750 for married individuals filing separately. If you expect ongoing childcare or dependent care expenses in 2027, this account may be worth reviewing during open enrollment.
Estimate Next Year’s Expenses
Before you choose how much to contribute, look back at what you spent this year and think about what may change in 2027.
- Do you expect medical, dental or vision expenses next year? Some examples include:
- Medical: Surgery, imaging exams and prescription medication.
- Dental: Braces, X-rays and dental implants.
- Vision: Eye exams, glasses and contacts.
- Will you pay for childcare, summer programs or dependent care?
- Did you have unused FSA funds this year?
- Could your household budget benefit from spreading costs across the year?
Estimating your expenses can help you choose an amount that supports your budget without setting aside more than you’re likely to use.
Review Retirement Savings and Employer Contributions
Open enrollment can also be a good reminder to review your retirement savings. If your employer offers matching contributions, understand how the match works and whether your current contribution helps you take full advantage of it.
If increasing your contribution is difficult, consider whether a small increase fits your budget. Even a modest change can support your long-term savings goals.
Don’t Overlook Other Financial Protection Benefits
Benefits like life insurance, disability insurance and employee assistance resources may help protect your finances if something unexpected happens. Review what your employer offers and confirm whether your current elections still fit your needs.
It’s also a good time to review beneficiaries for retirement accounts, life insurance policies and other employer-sponsored benefits, especially if your life or family situation has changed.
Make Your Benefits Work for Your Money
The best open enrollment decisions start with a clear look at your financial priorities. Review your expected expenses, compare your options and consider how each benefit can support your budget, savings and overall financial well-being in the year ahead.
This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
- Please consult a qualified tax professional for tax advice on your specific situation.