Your employer offers far more than a paycheck. Benefits typically add 25% to 40% of additional value on top of your base salary. Most employees use a fraction of it.
A $60,000 salary often has $15,000 to $25,000 of additional value locked in benefits. Here’s the complete checklist of what’s probably in your package and how to extract max value.
1. 401(k) employer match
The most important benefit by a mile.
How it works
Your employer matches a percentage of your salary that you contribute to a 401(k). Common formulas:
- 50% match up to 6% of salary (most common; you put in 6%, they add 3%)
- 100% match up to 3% (less common, same effective value)
- 100% match up to 4-6% (generous employers)
The move
Contribute at least the match-level percentage starting day one. Anything less is leaving free money on the table.
On a $60,000 salary with a 50% match up to 6%: you contribute $3,600/year, they add $1,800. That’s $1,800/year of free money. Over 30 years at 7% growth, that single year’s match becomes $14,000.
The upgrade
Once you’re capturing the match, aim to increase your contribution 1% every year until you hit the annual limit ($23,500 in 2026 for under 50). Your raise should partially go to 401k, not fully to lifestyle.
Check whether you can choose Roth 401(k) vs traditional. For most early-career workers, Roth usually wins.
2. Health insurance
What to look for
Your benefits portal will show 2 to 5 plan options. Key comparison points:
- Monthly premium (your cost per paycheck)
- Deductible (what you pay before insurance kicks in)
- Out-of-pocket max (the ceiling on your yearly spending)
- Copays vs coinsurance
- In-network doctors
- HDHP vs PPO vs HMO
The move: HDHP + HSA if it fits
A High Deductible Health Plan (HDHP) has a higher deductible ($1,500+) but much lower premiums. If you’re young and healthy, this often nets out cheaper.
More importantly, HDHPs unlock access to a Health Savings Account (HSA): the most tax-advantaged account in the US tax code.
HSAs are triple tax-advantaged:
- Contributions reduce your taxable income
- Growth is tax-free
- Withdrawals for qualified medical expenses are tax-free
2026 HSA limits: $4,300 individual, $8,550 family. After age 65, you can withdraw for any reason and just pay ordinary income tax (like a traditional IRA). It’s a hidden retirement account.
If you’re healthy and cash-flow allows, max the HSA before maxing your traditional IRA. It’s a better deal.
3. Flexible Spending Account (FSA)
Pre-tax dollars for medical or dependent care expenses. 2026 limits: $3,300 for medical FSA.
The catch
FSA funds are “use it or lose it” each year (with limited rollover). Estimate carefully based on realistic annual expenses: copays, prescriptions, contacts, dental, OTC meds.
The move
Use an FSA for known recurring medical costs. Don’t over-fund. If you have an HSA, an FSA is usually redundant or only helps as a “Limited Purpose FSA” for dental and vision.
4. Life insurance
Most employers provide a free basic life insurance policy (often 1x annual salary).
The move
Accept the free coverage. It’s worth $0 to you. If you have dependents, buy additional term life insurance privately (it’s cheap for young people and portable across jobs).
5. Disability insurance
Short-term (3-6 months of coverage) and long-term (to age 65).
The move
Most employers provide short-term at no cost. Long-term often costs $5-20/month and is WORTH IT. Disability is more likely to sideline you than death in your working years. Enroll if you can.
6. Commuter benefits
Pre-tax dollars for transit passes, parking, bike commute.
The move
If you commute to an office, enroll. Saves you 22-32% on commuting costs via pre-tax treatment. Easy win.
7. Tuition reimbursement
Many employers (especially Fortune 500) offer $1,000 to $5,250+ per year for continuing education.
The move
If you want to pick up a new skill, certification, or MBA, use this first. Companies can offer up to $5,250/year tax-free for education expenses. Most people forget this exists.
8. Student loan repayment
New and growing. Up to $5,250/year tax-free under current law.
Companies offering this include Aetna, Fidelity, PwC, Staples, Live Nation, Estee Lauder, and many smaller employers. Check your benefits portal or ask HR.
If yours offers it: sign up immediately. It reduces your student loans directly. Combine with your own payoff strategy in the student loan guide.
9. Mental health / EAP
Most employers provide an Employee Assistance Program (EAP) with free therapy sessions (usually 3 to 8 per year) through providers like Spring Health, Modern Health, or Lyra.
The move
Use them. Anonymous, free, immediate. Much better than navigating insurance and copays for routine therapy needs.
10. Retirement contribution perks
Beyond the 401k match, look for:
- True-up match (catches your match if you max out 401k mid-year)
- After-tax 401k contributions (mega backdoor Roth: a huge advantage if offered)
- Profit sharing (automatic company contribution)
- Pension (rare but still exists in some fields)
The move
Ask specifically about mega backdoor Roth availability. It allows up to $46,500 in 2026 of additional after-tax Roth contributions beyond the standard $23,500 limit. If your employer supports in-plan Roth conversions, this is massive.
11. Equity compensation
Relevant if you work at a tech company, startup, or mid-to-senior role at a public company.
Typical forms:
- RSUs: Restricted Stock Units. Vest over 4 years typically. Pay ordinary income tax at vest.
- ISOs / NSOs: Stock options. More complex tax treatment. Hold strategy matters a lot.
- ESPP: Employee Stock Purchase Plan. Buy company stock at 5-15% discount.
The move
- For RSUs: sell at vest unless you believe strongly in the company. Reduces concentration risk.
- For ISOs: consult a CPA before exercising. Tax implications are real.
- For ESPP: always enroll at max contribution, sell immediately at vest if short-term capital gains treatment. Small but guaranteed gain.
12. PTO, sick, and parental leave
- PTO: Use it. Unused PTO often doesn’t roll over or is paid out at a reduced rate on departure.
- Sick days: Track separately from PTO where possible. Don’t burn PTO on illness.
- Parental leave: Understand the paid vs unpaid split. Most US companies are well below global standards but big employers offer 12-20+ weeks paid.
- Bereavement: 3-5 days standard. Ask even if not advertised.
- Sabbatical: Offered at some companies (Adobe, EA, Genentech) after 4-7 years of tenure. Paid extended leave. Real.
13. Wellness benefits
Gym reimbursements, wellness apps (Calm, Headspace, Peloton), standing desks, ergonomic accessories.
The move
Review your wellness benefits portal annually. These add up and most employees don’t use them.
14. Pet insurance, legal benefits, identity theft protection
Often offered at group rates significantly below consumer prices.
The move
If you’re buying any of these separately, compare to the employer group rate. Usually 30-50% cheaper through the employer.
15. Performance bonus and review structure
Not a “benefit” exactly, but critical to understand:
- What percentage is your target annual bonus? (Usually 5-30% based on level)
- When is it paid? (Typically February or March)
- What triggers it? (Individual, team, company performance)
- Is it discretionary or formula-based?
The move
Treat your bonus as a lump-sum opportunity. Potential uses:
- Emergency fund top-up
- Extra student loan principal
- Roth IRA max contribution
- Tax refund to principal on debt
Don’t pre-spend your bonus. It’s not guaranteed.
The annual benefits checklist
Every November/December during open enrollment:
- Review all health plan options and compare total cost (premium + expected deductible)
- Max out HSA if on HDHP
- Adjust FSA based on last year’s usage
- Confirm 401k contribution is at or above match
- Consider increasing 401k contribution by 1% if raise received
- Enroll in any new benefits (pet, legal, etc.) if applicable
- Update beneficiaries on life insurance and 401k
- Review equity vesting schedule
- Confirm PTO is on track to be used by year-end
This 30-minute review captures thousands of dollars a year.
The total comp calculation
Once a year, calculate your total compensation, not just your salary:
Base salary + 401k match + HSA contribution (employer-paid) + health insurance (employer-paid portion) + life insurance value + disability insurance value + bonus target + equity + PTO value (days × daily rate) + tuition reimbursement (if used) + student loan match (if used).
For a $60,000 base, total comp often comes out to $80,000 to $95,000. When you eventually negotiate your next job, your real market value is closer to the total comp number.
Where Spew helps
Once you’re extracting max value from benefits, Spew auto-tracks your paycheck, 401k contributions, and HSA deposits, and shows how they combine across your financial forecast. 30-day free trial, no card required.
Or use the paycheck calculator to see how different benefit choices (more 401k, HSA, FSA) change your take-home.
Read your benefits guide once. Use it forever.