Benefits aren't just "nice to have"—they're a huge part of your compensation. Understanding them is worth thousands of dollars a year.
The Big Ones
401(k) Match
Watch Out
This is FREE MONEY. Not contributing enough to get the full match is literally leaving your salary on the table.
| Match Type | What It Means |
|---|---|
| 100% match up to 3% | They match dollar-for-dollar up to 3% of salary |
| 50% match up to 6% | They add $0.50 for every $1 you contribute, up to 6% |
| 3% automatic | They contribute 3% whether you do or not |
Your employer likely pays 70-80% of premiums. Options usually include:
| Plan Type | Premiums | Out-of-Pocket | Best For |
|---|---|---|---|
| PPO | Higher | Lower | Frequent healthcare users |
| HDHP | Lower | Higher | Healthy people + strategy |
| HMO | Lower | Low | Those okay with network limits |
Pro Tip
High- + HSA can be great if you're healthy. The HSA is triple tax-advantaged.
HSA (Health Savings Account)
If you have a high-deductible plan:
- Contributions are tax-free
- Growth is tax-free
- Withdrawals for medical expenses are tax-free
Max contribution (2024): $4,150 individual / $8,300 family
Quick Win
Max your HSA, invest it, and pay medical bills out of pocket if you can. It becomes a stealth retirement account.
Often Overlooked Benefits
| Benefit | Value |
|---|---|
| Dental/Vision | Usually cheap, worth it |
| Free basic coverage, 1-2x salary | |
| Disability Insurance | Protects your income |
| FSA | Pre-tax childcare or medical spending |
| Commuter Benefits | Pre-tax transit costs |
| Tuition Reimbursement | Free education money |
| Employee Discounts | Can save hundreds yearly |
During Open Enrollment
Do This
Every year during open enrollment:
- Review your health plan usage vs. costs
- Adjust HSA/FSA contributions
- Check beneficiaries on life insurance and retirement
- Review any new benefits added
The Bottom Line
Your benefits are worth 25-40% on top of your salary. Understand them, use them, and factor them into any job comparison.