Each year, there’s typically an open enrollment for many benefit programs from your employer. Here are some tips to consider when setting up your benefits.

Leverage employer contributions

Employers that offer retirement plans such as 401(k)s, 403(b)s, and 457s often include an employee match or a safe harbor contribution. Make sure you understand this benefit and set up a donation of at least the minimum required to take advantage of any employer-provided benefits.

Maximize your retirement contributions

Review the retirement plans offered and maximize your contributions. If your employer offers traditional and Roth options, consider dividing your contributions between the two. Remember, Roth 401(k) plan contributions are after-tax, but their earnings are tax-free, unlike tax-deferred plans. And remember, if you’re age 50 or over, you’re eligible for an additional catch-up contribution.

A special word on catch-up contributions. Looking ahead to 2026, there are two things to consider with catch-up contributions:

1. If you are age 60 to 63, the $8,000 catch-up contribution is now $11,250.
2. If your income exceeds $150,000, all of your catch-up contributions must be placed in a Roth account (if your employer offers one). So be careful with your tax planning activity in this area.

Review and leverage tax-advantaged health insurance

HSA contributions. If your employer offers high-deductible health plans, you’re eligible for a Health Savings Account (HSA). If this is the case, try to maximize your annual contribution to this fund to ensure your qualified health expenses are paid on a pre-tax basis. This is important because unused funds can be carried over to future years. The limits for 2026 are $4,400 for those filing single and $8,750 for families, with a $1,000 catch-up contribution if age 50 or over.

FSA contributions. If your employer offers a flexible savings account (FSA) option, you will want to forecast and contribute to this account to pay for qualified and planned expenses. The annual limit for 2026 is $3,400, but only $680 can carry over into the following year.

Review your investments

While you’re at it, now is a good time to review your retirement account investments and conduct any adjustments or rebalancing that you think makes sense. Depending on your age and situation, you may wish to review your plan and strategy to help optimize your tax obligations and risks as you look to the future.

Identify and review other benefits

Many employers offer an array of benefits that are often overlooked. Now is a great time to review all that’s provided and leverage as many of them as possible. Here’s a list of the most common that can provide significant benefits:

• Discounted or free insurance
• Group life insurance
• Disability insurance
• Long-term care insurance
• Dependent care assistance (up to $7,500)
• Education assistance (up to $5,250)
• Other fringe benefits: adoption expense help, stock options, and employee discounts

Each of these benefits can significantly increase your income and reduce your tax obligation, but only if you make it a habit to review your options each year. So, break out your employee handbook and take a look. Contact our RRBB advisors for more information or with any questions.