WE:Connect

Option

Description

Our Advice1[i]

Medical

Generally, choose from preferred provider organization plans (PPOs), health maintenance organization plans (HMOs) or High Deductible Health Plan (HDHP) where available. All plans provide preventive care at no or low cost, prescription drug benefits, and an out-at-pocket maximum to protect you financially in the event of a serious injury or illness. But there are key differences in flexibility and how you pay for coverage.

Examine current health and dependent care health.

Preventive care now will save money in the future.

Exercise your body consistently.

Dental

Generally, companies allow you to choose between a dental provider organization plan (DPO) and a dental maintenance organization plan (DMO) to help manage your dental expenses. Both plans cover preventive, major and orthodontia services but with different provider networks and costs.

Examine current health and dependent care expenses.

Vision

Generally, choose medical coverage and you are automatically enrolled in vision benefits. This coverage helps pay for eye exams, glasses and contact lenses.

Examine current health and dependent care expenses.

Life and accident

Choose to ensure your future financial security in the event of death or accidental injury. Select for yourself, spouse or domestic partner, and children.

If healthy seek quotes from out sources. If unhealthy maximize group coverage.

Disability

Choose to protect yourself in case you become disabled. Disability insurance replaces a portion of your income if you can no longer work.

Maximize all disability coverage available.

Flexible Spending

Accounts (FSAs)

Choose to pay for eligible health care and dependent care expenses with pretax dollars. You must enroll each year to take advantage of this valuable opportunity. Most companies have a maximum contribution limit of 5,000 annually.

Qualified expenses included: prescriptions, co-pays, dental expenses, chiropractor expenses, contact lens, glasses, laser eye surgery and more.  

Daycare, before or after school care& babysitters are eligible for dependent FSA.

Examine current health and dependent care expenses.

If offered, request a FSA debit card.

Maximize all FSA options if children are under age 18.

Retirement Plans

Prepare for your financial future with your Company’s Savings Plan. Most Savings Plans allow you to make both pre-tax 401 (k) and/or Roth 401 (k) contributions. Pre-tax contributions reduce your taxable income and earnings on your pre-tax contributions accumulate tax-deferred until withdrawn. Roth 401 (k) contributions are made on an after-tax basis and the Roth 401 (k) contributions and investment earnings are tax-free at the time of a qualified distribution. You receive a company match of X percent on the first X percent you contribute as pre-tax 401 (k) and/or Roth 401 (k) contributions.[ii]²

After X years, you'll have full ownership of the company matching contributions. You're always 100 percent vested in your contributions and earnings on those contributions.

Annually, you're allowed to contribute on a pre-tax and Roth basis the maximum of $17,000 (Age 50 or older an extra $5,500) – the 2012 contribution limit. The 2012 maximum for eligible pay (base salary, overtime, etc.) is $250,000. The combined limit for all contributions including after-tax contributions and company matching contributions is $50,000.

At a minimum contribute enough to receive the company match.

Cash flow permitting, maximize retirement savings plan annually.

Roth 401(k) is preferred