Open enrollment is coming.

Here's what to think about before your employer's deadline.

Most employees spend less than 30 minutes on open enrollment decisions. For most, that means selecting the same plan as last year without reviewing whether it still makes sense. Given that benefits elections can affect your tax situation, your retirement contributions, and your out-of-pocket costs for the entire year, it deserves more than that.

Here is a framework for making open enrollment decisions that go beyond checking the same boxes.

Health insurance

the HSA question

The most important health insurance decision for most people is whether a High-Deductible Health Plan with an HSA makes sense. The answer depends on your expected medical utilization, your tax situation, and your ability to fund the HSA.

The HSA is the only triple tax-advantaged account in the tax code: contributions are pre-tax, growth is tax-free, and distributions for qualified medical expenses are tax-free. In 2026, the contribution limit is $4,400 for self-only coverage and $8,750 for family coverage, with an additional $1,000 catch-up if you are 55 or older.

For people who are generally healthy and can afford to pay out-of-pocket for routine medical expenses, an HDHP with a fully-funded HSA often produces better financial outcomes than a lower-deductible plan, even accounting for higher out-of-pocket costs in a bad health year. The math depends on the premium differential, the deductible levels, and your expected utilization.

For people with predictable, high medical expenses, a lower-deductible plan with predictable out-of-pocket maximums often makes more sense. The point is to run the numbers for your actual situation rather than defaulting to the same plan.

Disability insurance

the benefit most people undervalue

Employer-sponsored long-term disability insurance is often the most undervalued benefit on the enrollment form. Your ability to earn income is your largest financial asset. A disability that prevents you from working is a greater financial risk than most investment losses.

Review your employer's long-term disability benefit carefully. Most employer plans cover 60% of base salary, often exclude bonuses and commissions, and have a monthly benefit cap that may be well below your actual income replacement need. Supplemental disability coverage purchased during open enrollment is typically available without medical underwriting a significant advantage.

Another caveat often unconsidered is that your employer sponsored disability insurance may be a taxable benefit to you if you become disabled (because the employer has been paying the premium) and it is not portable (meaning if you leave the employer, it won’t come with you).

Life insurance

what employer coverage doesn't solve

Employer life insurance typically provides one to two times your annual salary. For most people with dependents, a mortgage, and significant future income needs, that is far below adequate coverage. Employer-sponsored coverage also ends when employment ends, at exactly the moment when replacing it through individual coverage may be most difficult.

Open enrollment is a good time to review your total life insurance coverage (employer plus individual) against your actual income replacement and debt coverage needs.

Retirement plan contributions

adjust now, not in January

Open enrollment is often accompanied by the ability to adjust 401(k) or 403(b) contribution rates. If you are not on track to reach your contribution limit for 2026, increasing your deferral now means more payroll periods to make up the difference before year-end. A January adjustment costs you two to three months of additional contributions.

Dependent care FSA

a commonly missed benefit

If you have qualifying dependent care expenses (childcare, after-school care, summer day camp for children under 13, or adult dependent care) a Dependent Care FSA allows up to $7,500 pre-tax to be set aside annually. This is a separate benefit from the healthcare FSA and has its own enrollment election. It cannot be changed during the year without a qualifying life event. Make sure to check with your plan administrator if the funds are forfeited at the end of each year or rolled to the next.

What should I consider during open enrollment?

The key decisions are health insurance plan selection (including whether an HDHP with HSA makes sense), disability insurance adequacy, life insurance coverage relative to your income replacement needs, retirement contribution rates, and FSA elections for healthcare and dependent care. These decisions interact. For example a higher HSA contribution affects your taxable income, which affects your tax situation for the year.

Is an HDHP with an HSA better than a traditional health plan?

It depends on your expected medical utilization and your ability to fund the HSA. For generally healthy individuals who can pay routine medical costs out of pocket, the HDHP-plus-HSA combination often produces better financial outcomes because of the premium savings and the triple tax advantage of the HSA. For people with predictable high medical expenses, a lower-deductible plan may produce lower total annual costs. Run the numbers for your specific situation before deciding.

When does open enrollment typically happen?

Most employer open enrollment periods fall in October and November, with elections taking effect January 1. Federal employee open season runs early November through December. Check your employer's specific dates becuase elections typically cannot be changed outside of open enrollment without a qualifying life event such as marriage,divorce, birth, or loss of other coverage.

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This content is for educational purposes only and does not constitute personalized benefits, tax, or financial advice. Benefit elections depend on individual health, income, family situation, and employer plan provisions. Consult a qualified financial advisor or benefits specialist before making open enrollment elections. Integritas Wealth Strategies, LLC is a state-registered investment adviser in South Carolina.