Annual enrollment trip planner: your guide to yearly elections

Which health plan? HSA or FSA? How does this affect retirement savings? Annual enrollment raises lots of questions!

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Don't attempt open enrollment without a map! Here's a great route that allows for a few essential side trips.

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Keep in mind that investing involves risk. The value of your investment will fluctuate over time, and you may gain or lose money.
* With respect to federal taxation only. Contributions, investment earnings, and distributions may or may not be subject to state taxation. The triple tax advantages are only applicable if the money is used to pay for qualified medical expenses.
1. The 10x savings rules of thumb are developed assuming age-based asset allocations consistent with the equity glide path of a typical target date retirement fund, a 15% savings rate, a 1.5% constant real wage growth, a retirement age of 67 and a planning age through 93. Applicable for investors with a broad range of income, from about $50,000 to $300,000 a year. The replacement annual income target is defined as 45% of pre-retirement annual income and assumes no pension income. This target is based on Consumer Expenditure Survey 2011 (BLS), Statistics of Income 2011 Tax Stat, IRS 2014 tax brackets and Social Security Benefit Calculators. Fidelity developed the salary multipliers through multiple market simulations based on historical market data, assuming poor market conditions to support a 90% confidence level of success.
2. Although not required, an employer may opt to allow employees to carry over up to $500 per year in their FSA.
3. December 2016 CARAVAN® Survey of 1,309 respondents enrolled in an HSA-eligible health care plan.
4. Society for Human Resource Management, 2017 Employee Benefits: Remaining competitive in a challenging talent marketplace.
5. U.S. Social Security Administration Fact Sheet, Feb. 7, 2013.
6. Fidelity analysis of 22.5 M active plan participants as of 9/30/2016.

Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917

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