Hello Reader,

It’s my favorite time of year!

The weather is cooling down, pumpkin spice is everywhere, and “fun-size” candy bars are hard to avoid. 🍁

AND it’s open enrollment season!

What is open enrollment?

Open enrollment is the one time each year when you can make changes to your insurance and benefit coverages for the upcoming year.

Typically, you’re locked into your coverage for the year and can only make changes during this open enrollment window. However, there are special enrollment periods when you can make changes if you’ve experienced certain life events (think marriage, divorce, new baby, expiration of COBRA benefits).

For most insurance and employee benefits, the open enrollment period falls in October and November—though this can vary.

As a self-employed therapist, this season might not be quite as exciting or action-packed as it is for others, but it’s still important.

Here are some open enrollment tips that apply to (almost) everyone!

• Take time to think things through. If you’re anything like me, you might usually check the box and keep the same coverage as last year. But take a moment to reflect on any changes in your life (or upcoming changes) that may warrant updates to your coverage.
• Will you qualify for the self-employed health insurance tax deduction next year? As self-employed individuals, we can typically deduct medical insurance premiums from our taxable income. But here’s the catch: If you were eligible for employer-subsidized insurance (such as through a spouse), you can’t take this deduction. (Learn more here.)
• Consider an HSA. Health Savings Accounts (HSAs) are a fantastic savings tool, offering a rare triple-tax-free benefit: tax-deductible contributions, tax-free growth, and tax-free distributions. However, you must be enrolled in a qualified High Deductible Health Plan (HDHP) to fund an HSA. If you want to fund an HSA in 2025, you need to enroll into a HDHP during open enrollment!
• Check your beneficiaries! Open enrollment season is the perfect time to make sure the beneficiaries on your key accounts are up to date. This includes retirement plans, life insurance, and other important accounts. Keep in mind: beneficiary designations are powerful and rigid— the designated beneficiary will receive your money regardless of what your will or other estate planning documents say. So, double-check that everything is set up the way you want.

🤔 Questions, comments, or concerns? Hit reply and let me know what’s on your mind!

Wishing you and yours a very merry open enrollment season! 🎉

Best,
Dave

PS: Don’t forget! TOMORROW is the FREE BUDGETING WEBINAR with Julie Herres & me! It’s 60 action-packed minutes you don’t want to miss. (Yes, we’re making budgeting fun & approachable – or will at least embarrass ourselves trying!)

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