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Birth or Adoption

A new baby or child means change and new responsibilities as well as joy. Understanding how your benefits can change, and the resources available to you, will help you make informed decisions. If you have health care coverage, you generally have a limited number of days after the birth or adoption to change benefits, so don’t miss the deadline. Otherwise, you must wait for the next period of open enrollment.

Here are some steps you may take:

Retirement Planning

As you raise your family, you may wish to:

  • protect yourself and your family and start building assets for your future through the Benefits for Life program or Tax Deferred Annuity program if you aren’t already participating. BFL combines a retirement investment account with disability and term life insurance. If you aren’t already participating, speak with your employer.
  • ask your employer to offer Benefits for Life or Tax Deferred Annuity programs if you do not receive these benefits.
  • get in the savings habit by starting regular contributions to The Annuity Supplement (TAS).
  • roll over to MMBB your traditional Individual Retirement Account or other retirement account through a former employer.
  • change your beneficiary designations as needed for life insurance and retirement programs to be sure they are up-to-date. Under some plans, your spouse automatically becomes your beneficiary unless you name someone else. You may also wish to make benefits payable to a trust for your child(ren). If you’re not sure who you’ve named, you may wish to submit updated beneficiary forms for your MMBB benefits.

Health Insurance

  • If you’re expecting, be sure to take advantage of your medical plan’s maternity and well-baby benefits. Be sure to follow plan rules and obtain any needed preauthorization for the hospital stay.
  • Check health plan eligibility and costs. Your new child may be eligible for health coverage.
  • Add your child(ren) to your plans if you wish. If you’re enrolled in MMBB-sponsored medical and dental insurance, you have 30 days after the birth or placement for adoption to add your new child. Don’t miss the deadline or you’ll need to wait for the next period of open enrollment to add your child. Generally the period of open enrollment occurs during the fourth quarter of a calendar year.
  • If you’re adopting, your child is not subject to pre-existing condition limitations.

Flexible Spending Accounts (FSA)

  • Begin or adjust contributions to your health care flexible spending account (FSA). A health care FSA lets you set aside pre-tax dollars to pay family health care costs not covered by another plan. Having a new child may increase your expenses, so you may wish to change the amount you set aside.
  • Begin or adjust contributions to your dependent care flexible spending account (FSA). A dependent care FSA lets you set aside pre-tax dollars to pay eligible dependent care expenses for a child under age 13 or a disabled adult. See if your new child will affect your dependent care expenses.
  • This section can help you model the effect your new child could have on your future savings needs and how much you want to set aside for a health care FSA or a dependent care FSA.
  • If your current benefits package does not have an FSA, you may wish to speak to your employer about adding one.

Personal Affairs, Taxes and Estate Planning

  • Update your records. Contact your employer if you want to change your tax withholding to reflect the new dependent. Be sure that a Social Security number is requested for your child; this may be done for a newborn at the hospital.
  • If you’re adopting, keep track of your expenses because you may be eligible for an adoption tax credit.
  • Check your insurance coverage. A growing family may need more income protection. You may want to consider additional life insurance and accident insurance. You may also wish to check into child life insurance, which can be very cost-effective .
  • Speak to your lawyer to create or change your will or other legal documents. You may also want to discuss beneficiary designations, especially if benefits will be payable to a trust for your child(ren), as well as guardianship arrangements.

Lifestyle Adjustment Considerations

  • Consider time off. If you serve a church. Work with your congregation to ensure that the good work continues while you have private time to bond with your new family member. Otherwise, check your employer’s policies for time off and leaves of absence.
  • In times of change, be sure to take care of yourself. Watch your nutrition and exercise, and get help when you need it.