Types of Benefit Plans for Corporate Employees
Figuring Out Your Best Option
If you work for a corporation, be it large or small, you probably have a few different options for setting up your benefits. Benefit plans change from year to year and can vary quite a bit depending on your employer. The best source of clarification is always your Human Resources Department. They should be able to answer specific questions and help you select the best plan for your needs. To get a better idea of the types of plans you may encounter, here’s some basic clarification on the types of things to look out for.
Understanding the Difference Between an FSA, HRA and HSA
When it comes to health insurance, the most common plans typically offered by businesses today are high-deductible plans. Some government and union jobs have not yet moved to high-deductible plans, but for the rest of us, this is probably your only option. To help you fund your medical expenses, most of these plans include specific health bank accounts. These accounts help you plan ahead by setting aside money for medical bills in advance. If you’re lucky, your employer will also contribute to your account annually, or offer incentive rewards for you to earn extra cash in your account. The basic types of accounts for medical plans are an FSA (Flexible Spending Account), an HRA (Health Reimbursement Account) or an HSA (Health Savings Account). All of these have particular stipulations related to tax deductions and whether you are allowed to take the account with you if you decide to leave your job.
The Most Important Thing to Know About Retirement Accounts
Once you finish discussing the complicated world of health benefits with your Human Resources Department, don’t forget to ask about retirement. Putting money into a 401(k) or Roth IRA can save you money in income taxes and give you peace of mind for the future. If your employer offers a match program, make sure you take full advantage of it. This is free money in your pocket and definitely not something to pass up. Always plan to put aside the proper amount to get the maximum in match money that you can. While you’re at it, make sure your beneficiaries are up to date and listed properly in the event that you aren’t around when it comes time to collect for retirement.
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Running your own business isn’t easy, and it certainly takes time, determination, and lots of hard work, however with the right tools and knowledge, it can be a lot easier. Alron Corps, Inc., a subsidiary of Alron Enterprises, Inc. specializes in providing small businesses the highest quality expert assistance. Contact us today to get started! We look forwarding to hearing from you. Give us a call: 321-951-7626 or send us an email: [email protected]