Summary
- Research your employee benefit options during open enrollment
- Most Flexible Spending Accounts must be spent by year’s end
- Health Spending Accounts offer tax advantages that help you pay for medical expenses
The 2×2 System is a simple financial habit designed to help you stay on top of your money and make consistent progress toward your goals. Here’s how it works: set aside two hours on your calendar, twice a month, to focus on one specific financial task.
This modest but consistent effort can help you maintain financial health, reduce money stress, and build wealth in manageable, bite-sized steps.
If you missed it, check out October’s blog on planning for financial emergencies and building your education savings for additional strategies to strengthen your financial foundation.
This month’s focus:
- Session 1: Review your employee benefits during open enrollment.
- Session 2: Use your remaining flexible spending account (FSA) funds before they expire.
November Session 1: Research your employee benefits.
For many employees, a significant part of the job is sifting through emails to determine which contains vital information. That means a lot of potentially useful information, such as updates on employee benefits, gets weeded out simply because there isn’t enough time to engage with everything. But now, during this month when open enrollment typically happens, give yourself time to review the offerings for each of these potentially valuable employee benefits:
- Healthcare coverage
- Dental and vision plans
- Retirement plan or employer match
- Life insurance policy
- Training and development reimbursement programs
- Stock option plans
- Profit sharing
- Wellness and mental health resources
- Student loan repayment assistance
- Remote work benefits
- Disability insurance
- Commuter reimbursement options
Tip: The standard calculation is that your pay is only 70% of the total resources offered by your employer. If you’re not making the most of the rest of your benefits, it’s like leaving 30% of what’s available to you on the table.
November Session 2: Use your flex spending account (FSA).
If you have a Flexible Spending Account (FSA) for medical or dependent care expenses, now’s the time to use any remaining funds. Most FSA plans operate on a “use it or lose it” basis, meaning unspent money at year’s end doesn’t carry over.
If you don’t yet have an FSA or Health Savings Account (HSA), take this opportunity to explore whether one could help you save on taxes and healthcare costs next year.
Smart ways to spend your remaining FSA funds.
Many people use leftover funds on everyday items, such as first-aid supplies or sunscreen—but your options are much broader. Consider investing in quality-of-life purchases such as:
- Personal massage or relaxation devices
- Air purifiers or humidifiers
- Prescription eyewear
- Mental health services or therapy sessions
- Wellness tools that enhance daily comfort
Always check your plan provider’s approved list of eligible items before making a purchase; some surprising products or services may qualify. Some items may require a letter of medical necessity (LMN).
Tip: You may have been advised to use your leftover FSA funds to stock up on practical items, such as bandages or sunscreen. That’s perfectly fine, but do yourself a favor by exploring the full spectrum of available products. A personal massage device or air purifier might do more to enhance your quality of life right now than something you’ll stash away in a drawer and maybe use someday.
If you don’t have a Health Savings Account (HSA), we can help.* Our HSA is tax-free and enables you to pay for qualified medical expenses, including dental and vision care. At the same time, your HSA earns dividends on your balance. Plus, unlike an FSA, you balance rolls over from year to year!
Final thoughts.
As the year winds down, November is the perfect time to take stock of your financial and personal wellness opportunities at work. From reviewing your employee benefits during open enrollment to making sure you use every dollar in your flexible spending account, these small steps can have a big impact on your financial well-being. Don’t let valuable perks or funds go unused. Take a proactive approach now so you can start the new year feeling confident, informed, and ready to make the most of what your employer offers.
*FIGFCU does not provide tax advice. This material is for informational purposes only and is not a substitute for professional tax advice. Consult your tax advisor regarding eligibility or refer to IRS Publication 502. Contribution limitations and other restrictions apply to HSAs. To have a Federally Qualified HSA, you must purchase and maintain a HDHP with minimum deductibles of $1,300 (individual) and $2,600 (family), and maximum out of pocket expenses less than $6,850 (individual) and $13,700 (family). Generally you cannot be covered by another low-deductible health insurance policy. The tax treatment of HSA contributions and distributions under your state’s income tax laws may differ from the referenced federal tax treatment, and from state to state. Consult with your financial or tax advisor for more information. This Credit Union is federally-insured by the National Credit Union Administration.
Refer to section 213 (d) of the IRS Tax Code. Visit the U.S. Department of Treasury website for up-to-date contribution limits and more detailed information on plans and taxes. APY = Annual Percentage Yield. Yields are subject to change at any time. Fees could reduce the earnings on an account. Fee reimbursement promotion offered is subject to change and termination.
Promotions offered are subject to change or terminate at any time.
