What should you review during open enrollment this year?
Most people re-select last year’s benefits and move on. Open enrollment is one of the few times each year you can change how your health coverage, retirement savings, and insurance work together, and plans change their options every year. For the families and executives we work with in Franklin Lakes and across Bergen County, these are the questions we review each fall.
Should you choose a high-deductible health plan with an HSA?
If you are healthy and a high earner, often yes. A Health Savings Account (HSA) offers federal tax-free contributions, growth, and withdrawals for qualified medical expenses, and it can become a long-term fund for healthcare in retirement. We have met clients enrolled in an eligible plan who never opened the HSA.
A New Jersey note: New Jersey is one of only two states that does not recognize the HSA tax benefit. Contributions, including your employer’s, and the earnings in the account are taxed at the state level. The federal savings are still meaningful, but run the numbers with that in mind.
Are you getting everything out of your 401(k)?
Start by contributing at least enough to receive the full employer match, and check the vesting schedule so you know when those dollars become yours. Then look at the features many people miss.
The standard deferral limit is $24,500 in 2026, but some plans allow total contributions of up to $72,000, including employer dollars. After-tax contributions can fill that gap, and if your plan permits in-plan Roth conversions, you can move them to Roth to grow tax-free. When we reviewed the plan booklet for a pharmaceutical executive, we found he was using neither feature. Adding both moved tens of thousands of additional dollars into his Roth each year.
If you are 50 or older, you can also make catch-up contributions of an extra $8,000 in 2026, rising to $11,250 from ages 60 to 63. Higher earners should note a new rule this year. If your 2025 FICA wages from your employer exceeded $150,000, your 2026 catch-up contributions must go into the Roth side of the plan. You give up the upfront deduction on those dollars in exchange for tax-free withdrawals later. If your plan does not offer a Roth option, you cannot make catch-up contributions at all, so confirm what your plan allows.
The catch-up details are now one paragraph, since the regular catch-up rules and the Roth requirement read naturally together. There are now no bullets anywhere in the post.
Is your employer life and disability insurance enough?
Usually not on its own. Group life insurance is often capped at one to three times salary, which may not cover income replacement, a mortgage, and college costs. Check whether it is portable if you leave or retire, since new coverage later in life can be expensive or unavailable.
For disability coverage, look at the definition of disability (own-occupation is stronger than any-occupation) and who pays the premium. If your employer pays, benefits are generally taxable. If you pay with after-tax dollars, they are generally tax-free. If you live in New Jersey but work in New York, your state disability and paid family leave coverage generally runs through New York, so confirm which rules apply to you.
What should executives review beyond the 401(k)?
Review stock option and RSU vesting dates, tax treatment, and how concentrated you are in company stock. Check for a discounted Employee Stock Purchase Plan and any deferred compensation plan. In one review, we found a client was eligible for her company’s Supplemental Executive Retirement Plan, which let her defer up to 8% of base pay pre-tax each year.
What else is worth a second look?
Employers can now provide up to $5,250 a year in tax-free student loan repayment permanently. Charitable matching, fertility assistance, and legal plans add value when used. Also confirm your beneficiary designations, since they override your will. An AI tool can serve as a second set of eyes on plan documents, as long as you remove identifying details first and verify anything it flags.
How can Carson Wealth Franklin Lakes help?
Bring your enrollment materials to your fall or year-end meeting, and our team will review them alongside your tax and financial plan. If you are not yet a client, call our Franklin Lakes office at 201-891-1130 to schedule a conversation.
Investment advisory services offered through CWM, LLC, an SEC Registered Investment Advisor. Carson Partners, a division of CWM, LLC, is a nationwide partnership of advisors. None of the information contained herein is intended as tax or legal advice. Tax laws are complex and subject to change. Please consult the appropriate professional to see how the laws apply to your situation.
