How to Make the Most of Your Benefits Before the Year Ends

A few year-end benefits decisions can help you avoid leaving money unused, take advantage of available coverage and start the new year in a better financial position.

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Before year-end, check for unused FSA funds, your health plan deductible, overdue preventive care, HSA and retirement savings opportunities, and outdated beneficiary designations. A quick review can help you avoid missed deadlines and make better use of the benefits available to you.

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Your benefits don’t all follow the same calendar rules.

Some money may expire. Your deductible may reset. You may still have time to increase certain contributions, schedule care or update account information before the year ends.

Which means December is a good time to check what you’ve used, what you haven’t and what could be worth handling before January.

A few minutes now could help you avoid leaving money on the table or missing an opportunity you won’t get back until next year.

Check your FSA balance

If you contribute to a Flexible Spending Account (FSA), find out how much money you have left and when you need to use it.

Depending on your employer's plan, unused funds may expire at the end of the plan year. Some plans offer a grace period or allow a limited amount to carry over.

If you have a remaining balance, look at upcoming eligible medical, dental and vision expenses. Confirm the deadline for submitting claims, too. It may be different from the deadline for incurring expenses.

Know where you stand on your deductible

If you've already met or are close to meeting your health insurance deductible, timing could affect what you pay for care.

Consider any medically appropriate appointments, follow-ups or procedures you've been putting off. Receiving that care before your deductible resets may result in lower out-of-pocket costs, depending on your plan.

Knowing how much of your deductible you've already paid can help you decide when to schedule care and avoid a surprise when it resets in the new year.

Catch up on preventive care

An annual physical, recommended screening or vaccination can be easy to postpone when the year gets busy.

Look at the preventive services available through your health plan and whether you're due for any of them. If appointments aren't available before December 31, getting something on the calendar for early next year still gets it taken care of.

Consider another HSA contribution

Money in a Health Savings Account (HSA) generally stays with you from year to year, so there's no year-end rush to spend the balance.

If you're eligible to contribute, see how much you've put into your HSA so far this year and whether adding more makes sense for your finances.

HSA contributions can provide tax benefits while helping you save for qualified healthcare expenses now or in the future. Check current IRS contribution limits, your eligibility and your year-to-date contributions before adding more.

Revisit your retirement contributions

If your employer offers a retirement plan match, confirm that you understand the requirements for receiving it and how much you're currently contributing.

Your ability to save may have changed since the beginning of the year. A raise, paid-off debt or lower monthly expenses could leave more room for retirement contributions.

If you decide to increase your contribution, find out when the change would take effect. Depending on your employer's plan and payroll schedule, it may make more sense to plan the increase for the new year.

Make sure your beneficiaries are current

Beneficiary designations can easily go untouched for years.

Check the people listed on your retirement accounts, life insurance policies and other applicable accounts. Marriage, divorce, births, deaths or changes in family relationships may mean those designations no longer reflect your wishes.

While you're there, see whether you've named contingent beneficiaries where appropriate.

Before January gets here

Give yourself 20 minutes before the end of the year to pull up your benefits information and financial accounts.

You may find there’s nothing you need to change. Great. Or you may find money you still have time to use, an account that needs attention or a decision you’ve been meaning to make.

Either way, you’ll go into January knowing you looked.