Your First U.S. Open Enrollment Is Coming. 7 Benefits Immigrants Often Get Wrong

By Max Stephani

If this is your first U.S. job, open enrollment can feel like being handed a menu written in another language.

HDHP. PPO. HMO. HSA. FSA. 401(k). Coinsurance. Deductible.

And somewhere in the middle of all those acronyms is a decision that can affect thousands of dollars of your income.

For many immigrants, this is the first time you are choosing your own health insurance and retirement benefits in the U.S. Employers commonly hold their open enrollment periods between September and November, although the exact dates depend on the company.

The biggest mistake is treating the default option as the safest option.

Here is what these benefits actually mean, what the 2026 limits are, and what you should check before your enrollment window closes.

First, your visa does not mean you should ignore employee benefits

If you are working in the U.S. on an H-1B, federal rules generally require your employer to offer benefits to H-1B workers on the same basis and under the same criteria as similarly employed U.S. workers.

The Department of Labor says those benefits can include health, life and disability insurance, retirement and savings plans, cash bonuses and other compensation. There are specific rules and exceptions, particularly for workers temporarily placed in the U.S. by multinational companies.

So don’t assume that being on an H-1B, OPT or another work-authorized status means you should skip the benefits section of your employment package.

Your first step should be simple: ask HR for the full benefits guide and the Summary of Benefits and Coverage (SBC).

1. Health insurance: PPO, HMO or HDHP?

This is usually the biggest decision during open enrollment.

The names sound complicated, but the basic differences are straightforward.

PPO

A Preferred Provider Organization generally gives you more flexibility in choosing doctors and specialists and usually does not require a referral to see a specialist.

The trade-off is often higher premiums.

HMO

A Health Maintenance Organization generally costs less in premiums but gives you a more restricted provider network. You typically choose a primary care physician and may need a referral before seeing a specialist.

HDHP

A High-Deductible Health Plan generally has a lower premium but a higher deductible.

The important part for immigrants to understand is what comes with it: an HSA may be available if the plan is HSA-qualified.

In 2026, an HSA-qualified HDHP must have a deductible of at least $1,700 for self-only coverage or $3,400 for family coverage. Its annual out-of-pocket limit cannot exceed $8,500 for self-only coverage or $17,000 for family coverage, excluding premiums.

The right question is therefore not simply:

“Which plan has the lowest premium?”

Instead, compare:

annual premiums + expected medical spending + deductible + out-of-pocket maximum – employer HSA contribution.

That gives you a much better picture of the actual cost.

One number immigrants often misunderstand

In 2025, workers with employer-sponsored insurance paid an average of 16% of the premium for single coverage and 26% for family coverage. The average annual worker contribution was $1,440 for single coverage and $6,850 for family coverage.

Those are averages, not what your employer will charge you. Your own benefits guide is what matters.

2. The 401(k): don’t leave the employer match behind

A 401(k) is your employer-sponsored retirement account.

Your employer may offer to match part of what you contribute.

That match is where many new immigrants make an expensive mistake.

For example, suppose your company says:

“We match 50% of your contribution up to 6% of salary.”

If you earn $100,000 and contribute 6%, you put in $6,000 and the employer adds $3,000.

If you contribute only 2%, the employer contributes only $1,000.

You did not save 4% of your salary.

You potentially left another $2,000 of employer money on the table.

The exact formula varies by employer. Vanguard’s 2025 analysis found that the average promised employer match among plans with matching formulas was 4.6% of pay, with a median of 4.0%.

For 2026, the employee contribution limit for a 401(k) is $24,500. Workers age 50 and older generally have an additional $8,000 catch-up limit. Under the SECURE 2.0 Act, workers specifically aged 60 through 63 have a higher catch-up limit of $11,250 for 2026.

You do not need to max out your 401(k) to make it worthwhile.

But you should understand your employer’s matching formula before deciding how much to contribute.

What if you eventually leave the U.S.?

This is particularly important for immigrants.

Leaving a U.S. employer does not automatically mean you should cash out your 401(k).

Depending on your circumstances, you may be able to leave the money in the plan, roll it into another retirement account or take a distribution.

A cash-out can create income tax and, in many cases, an additional 10% early-distribution tax if you are under 59½.

If you expect to leave the U.S. permanently, check the rules with your plan administrator and tax adviser before moving the money.

3. The HSA: the account many immigrants discover too late

If your health plan is HSA-qualified, you may be eligible for a Health Savings Account.

For 2026, the HSA contribution limits are:

• $4,400 for self-only coverage
• $8,750 for family coverage
• $1,000 additional catch-up contribution for people age 55 or older

The IRS says HSA contributions can receive favorable tax treatment, and qualified medical withdrawals are tax-free. The money also remains in the account from year to year.

This is why an HDHP should not automatically be dismissed because its deductible looks high.

You need to compare the entire package.

For someone who rarely uses healthcare, an HDHP with an HSA can be attractive. Someone with regular medical expenses may find a different plan makes more sense.

There is no universal “best” plan.

One important trap

A general-purpose health FSA can generally make you ineligible to contribute to an HSA.

A limited-purpose FSA, typically used for eligible dental and vision expenses, may still be compatible with an HSA.

Check the specific rules of your employer’s plans before enrolling in both.

4. The FSA: free tax savings, but don’t put in money you won’t use

A Flexible Spending Account lets you use pre-tax money for eligible expenses.

For 2026, the health FSA salary-reduction limit is $3,400. If your employer’s plan allows a carryover, the maximum carryover for 2026 is $680.

There is an important catch.

An FSA is generally subject to a use-it-or-lose-it rule, although an employer’s plan can offer a permitted carryover or grace period.

So don’t automatically elect the maximum amount.

Estimate your actual eligible expenses first.

For immigrants who have just arrived in the U.S., this can be especially easy to get wrong because you may not yet know how much you will spend on doctors, prescriptions, dental care or vision care.

5. Life and disability insurance matter more if your family depends on your salary

Your benefits package may include several types of insurance beyond healthcare.

Life insurance

Many employers provide basic life insurance at no additional cost, often based on a multiple of salary.

You may also have the option to buy additional coverage.

If your spouse depends on your income, or you have children, don’t automatically assume the employer-paid amount is enough.

Think about what would happen if your salary disappeared tomorrow.

Would your family still be able to pay the mortgage or rent, childcare, education and everyday expenses?

That is the question the life insurance benefit is meant to address.

Disability insurance

Disability insurance is different.

Life insurance pays after death. Disability insurance can replace part of your income if you cannot work because of a qualifying illness or injury.

Check both short-term and long-term disability coverage, including:

• How much of your salary is replaced
• How long benefits can last
• The waiting period before payments begin
• Whether premiums are paid by you or your employer
• Whether the benefit is taxable

For a household that relies heavily on one income, this can be just as important as life insurance.

6. PTO is not the same as in many countries

The U.S. does not have a federal requirement giving private-sector workers a general number of paid vacation days.

Your employer’s policy matters.

The latest Bureau of Labor Statistics data show that private-industry workers received an average of 11 vacation days after one year of service, 15 after five years and 17 after 10 years.

But company policies vary widely.

And unlike in many countries where statutory vacation provides a baseline, U.S. workers often need to understand exactly what their employer offers.

If you are negotiating a new job, ask about PTO before signing the offer.

Open enrollment is usually about selecting benefits, not renegotiating your employment package.

7. Don’t confuse employer open enrollment with ACA Marketplace enrollment

There are two different enrollment periods that immigrants often confuse.

Your employer’s open enrollment is the period when you select or change benefits through your job. Your employer sets the dates.

ACA Marketplace Open Enrollment is the federal enrollment period for individual health coverage.

For 2027 Marketplace coverage, Open Enrollment runs from November 1, 2026 through January 15, 2027. If you enroll by December 15, coverage can start January 1, 2027.

If you have employer-sponsored coverage, you generally need to compare your options carefully before deciding whether Marketplace coverage is relevant to you.

If you lose employer coverage during the year, you may qualify for a Special Enrollment Period.

What to check before your employer’s deadline

The immigrant mistake to avoid

The biggest mistake during your first U.S. open enrollment is not choosing the “wrong” PPO or HDHP.

It is clicking the default option without understanding what you are buying.

The U.S. healthcare and benefits system is complicated even for Americans.

As a new immigrant, you have an additional problem: many of these terms may not exist in the healthcare system you came from.

Take an hour before the deadline.

Look at the premium.

Look at the deductible.

Look at the out-of-pocket maximum.

Check the employer’s 401(k) match.

Check whether an HSA is available.

Then look at life and disability coverage.

That hour can be worth far more than the time it takes.

Sources: DOL Fact Sheet 62L: Benefits for H-1B Workers, IRS Rev. Proc. 2025-19 (HSA/HDHP Limits), IRS 401(k) Contribution Limits, IRS SECURE 2.0 Catch-Up Contributions, KFF 2025 Employer Health Benefits Survey, Healthcare.gov: Immigrants and the Marketplace, Newfront: 2026 Health FSA Limit