Annual Employee Benefits Checklist

With the fall in full swing, many individuals will be looking at their practice or company open enrollment period to refocus whether their benefits need to be updated or changed. Far too often, this process can be forgotten or overlooked with potentially negative consequences. Take the time the review whether your plans are up to date.

Here are some of the most important aspects to review annually...

1. Is your 401(K) plan beneficiary correct - does it need to be changed?
   This is the most common mistake made by couples who divorce but leave their ex-spouse as beneficiaries of their retirement plan at work. If you have re-married, ensure your new spouse is named the beneficiary. If you are single, decide someone who is a guardian or family member to handle your estate.
2. Health & Dental Insurance - I have another child in my family - I have gotten married.
   Ensure that your new spouse or child is placed on your company plan unless they are already covered through another health or dental insurance plan. Most HR departments will require a name and social security number.
3. Health Savings Plans & Dependent Care Plans
   Some companies offer the ability for you to allocate pre-tax earnings towards separate accounts that can be used to reimburse you for healthcare related expenses as well as dependent care for a child. Typically there are limits as too how much can be contributed annually however it is a wonderful way to secure a lower taxable income for federal and state tax purposes.
4. Life & Disability Insurance Protection
   Group Life and Disability insurance is sometimes offered as a group benefit to all employees. This form of coverage is usually paid by employees on a pre-tax basis and is guaranteed issue (no individual underwriting). Sadly, many employees elect not to participate in disability insurance coverage although their is a 24% chance someone will become disabled during their working career. Disability Insurance is overlooked but should not be - it is very important to have. If your company does not provide it - obtain an individual disability insurance policy. These involved individual underwriting but are portable for the policyholder and benefits are usually tax-free. Talk to a disability insurance specialist about options for this.

These are just some of the areas to consider reviewing on an annual basis when your open enrollment period opens.