October 2025

We're now a week into the latest government shutdown, and while headlines focus on Washington gridlock, there's something more immediately actionable for many of you: open enrollment season.

Two very different topics this month, but both worth your attention.

Open Enrollment: Your Annual Financial Optimization Opportunity
If your employer offers health benefits, you typically have just a few weeks to make changes that will impact your entire year. Most employers offer open enrollment in the fall (typically October or November, but could be different for you!). Open enrollment through healthcare.gov begins November 1. This isn't just about picking a health plan. It's an opportunity to optimize your financial strategy.

Market Perspective During Government Uncertainty

With government funding discussions making headlines, it's worth remembering that markets have historically shown resilience during shutdowns. According to recent CNBC analysis, the S&P 500 has typically performed well during previous government shutdowns, often gaining ground during these periods of political uncertainty.

This pattern reinforces an important principle: short-term political events rarely dictate long-term investment outcomes. While headlines may feel unsettling, maintaining perspective and staying focused on your financial strategy remains the most reliable approach.

Open Enrollment Quick Review Checklist

When comparing insurance plans, look beyond the monthly premium. Consider:

• Your actual deductible and out-of-pocket maximum
• Whether your preferred doctors are in-network
• Prescription drug coverage for any medications you take regularly
• HSA eligibility if that's part of your strategy

2025 & 2026 Contribution Limits Worth Knowing

Health Savings Account (HSA):

• Individual coverage: $4,300 (2025), increasing to $4,400 (2026)
• Family coverage: $8,550 (2025), increasing to $8,750 (2026)
• Age 55+ catch-up: Additional $1,000 per person aged 55+

Flexible Spending Account (FSA):

• Health FSA: $3,300 (2025), increasing to $3,400 (2026)
• Dependent Care FSA: $5,000 per household
• No catch-up: FSAs do not have a catch-up contribution like HSAs

Retirement Accounts (401(k), 403(b), IRA, etc.):

• Elective deferral limits for 401(k)/403(b)/457: $23,500 (2025) and will be increasing to $24,500 (2026)
• New for 2026: For those earning more than $145,000 in the prior year, catch-up contributions must go to the Roth portion of your 401(k)
• Catch-up contribution limits for those 50-59 and 64+ is currently $7,500 (2025) and will be increasing to $8,000 (2026)
• Higher catch-up limit for those age 60-63 is currently $11,250 (2025) and will be increasing to $11,500 (2026)
• Total contribution limits including elective deferrals, employer matching, profit sharing, and after-tax contributions is currently $70,000 (2025) and will be increasing to $72,000 (2026) (plus any catch-up contributions you are eligible for based on age)
• IRA and Roth IRA limits are currently $7,000 (2025) and will be increasing to $7,500 (2026). The catch-up contribution for those age 50 and older is currently $1,000 (2025) and will be increasing to $1,100 (2026)

The 401(k) Advantage

Your employer's 401(k) plan remains one of the most powerful wealth-building tools available. 

• Contributions to a traditional 401(k) reduce your current taxable income while growing tax-deferred for retirement 
• Contributions to a Roth 401(k) do not reduce your current taxable income but should be tax free at retirement (age 59.5 or older)
• Many employers offer matching contributions - essentially free money that you should prioritize capturing
• In addition, many employers also allow after-tax contributions that can be converted to a Roth (see below)

Make Your Raises Work Harder

If you received a cost-of-living adjustment or raise this year, consider redirecting a portion of it to tax-advantaged accounts. This approach lets you increase your savings without impacting your current lifestyle, while meaningfully affecting your future financial picture.  

For high earners who have maxed out traditional 401(k) contributions, many employers now offer a mega backdoor Roth strategy. This allows you to make after-tax contributions to your 401(k) and then convert them to Roth, potentially allowing total annual contributions well beyond the standard limits while experiencing tax-free growth.

The HSA Advantage

If you're eligible for an HSA through a high-deductible health plan, this remains one of the most tax-efficient savings vehicles available. Contributions are tax-deductible, growth is tax-deferred, and withdrawals for qualified medical expenses are tax-free. At age 65, there is no penalty if used for non-qualified expenses - it is treated similar to an IRA for tax purposes.

Questions about how these changes might fit into your overall financial strategy? Want to coordinate with your CPA? To discuss your unique situation and goals, contact  info@certuswealthmanagement.com.

Certus Wealth Management