How to Maximize End of the Year Benefits

It is almost the end of the year which means that you have about a week left to maximize your benefits.

This brief post will go over a few things you can do to maximize your benefits this year and in 2023.

What are Benefits

Benefits are financial resources that you get through work via payroll deductions. You typically pick these out each November during annual enrollment.

Below are some of the commonly unused benefits.

Retirment Contributions

Each year we pick what percentage of our income we will decide to put into our retirement accounts. Often, many do not max out their retirement accounts.

Here is the maximum you can put into 401k’s accounts for 2022 and 2023.

If you find yourself at this point of the year with extra money that you want to invest this is a good place to put it. You may have to contact your retirement plan about a one-time contribution, but it is worth the call.

This is money that will grow tax deferred until you pull it out in retirement.

If you have a traditional 401(k) it will allow you to decrease taxes paid this year. If it is a Roth that money will be a tax-free distribution in retirement.

Health/Flex Savings Accounts

Health Savings Accounts and Flex Savings accounts allow you to pay for medical expenses tax free.

For HSAs, you can contribute up to $3650 for individuals and $7300 for families in 2022.

Maxing out this contribution is another way to lower your tax burden, invest fir the long term, and if they arise use the money for medical expenses.

Flex savings accounts have a contribution limit of $2850 for 2022. Unlike Health Savings Accounts the money needs to be used within the year a contribution is made.

If it is not, it is typically returned to you and then you pay taxes on it like normal.

It is important to use these funds before the end of the year, so the money is not taxed.

End of the year purchases such glasses or contact lenses can be covered and are a great way to use these benefits.

Also, if you find that you are contributing too much each year, you can scale back your contribution for 2023.

Wellness Visits

If you are anything like me, you always forget to schedule your annual checkups.

Most insurance plans these are covered for free or at a very small charge.

If you have not, now is a great time to schedule your physical, eye exam, and dental exam before the year ends. You do not get the money back if you don’t use these benefits.

These exams are generally preventative in nature and can also help catch an underlying problem before it becomes bigger and more costly.

Other Perks

Finally, now is a great time to make sure you are taking advantage of other perks in your plan.

Signing up for a gym membership or taking a short online class on different health aspects can earn you points within your plan.

These points can sometimes be used to cash in employer contributions to things like health savings accounts. They can also be redeemed for cool little gifts in some plans.

Just don’t let them go to waste because you are paying for them.

Wrapping Up Benefits

Make sure you are aware of what your benefits are in 2022 and in 2023. Understanding your plan will help you maximize how you use them every year.

You have to pay for them so you might as well use them.

How do you make sure you maximize your benefits each year?