You have a lot on your mind as you prepare to welcome a new child into your family — through birth, adoption, or other paths.

One task to remember: update your payroll tax withholdings at work to add your dependent child. This can add income to your paycheck. And you may be eligible for a child tax credit. More money for you and your little one!

Plus, it’s so important to be sure you’re paying the right amount of taxes after welcoming a child.

Payroll tax deductions

When you were hired, you filled out a W-4 form to set your income tax withholding (how much your employer sets aside to pay federal taxes on your behalf).

After having or adopting a child, updating your W-4 form can help you qualify for tax breaks. You can find the W-4 form on your company’s intranet or ask human resources. Be sure to read the instructions and worksheet that comes with the form.

• If you don’t withhold enough tax, you may have to pay a high tax bill later. There can be penalties, too.
• If you withhold too much in taxes, you’ll get a tax refund later. But you could have earned interest on that money.

Adding a child (dependent) on your W-4 can lead to tax savings. Your paycheck will have less tax withheld, so your paycheck will be larger.

Child tax credit

The child tax credit is a tax break for eligible families.

You may qualify for this credit if your income is less than $200,000 (or less than $400,000 if you file a joint return). If you have a higher income, you might be eligible for a partial credit. Learn more about child tax credit eligibility from the IRS.

You can claim the child tax credit when you file your income tax return. And adjust your W-4 form to reflect this in your paycheck.

Child and dependent care tax credit

The child and dependent care tax credit is a tax break for families that pay for childcare while they work. The credit is for children under 13 or adults who cannot care for themselves.

The amount of the credit is based on your income and childcare expenses. In 2024, the maximum expenses you could claim was $3,000 for one dependent, or $6,000 for two or more dependents. You’ll use IRS form 2441 to file for this credit when you file your income tax return.

Adoption tax credit

The adoption tax credit is a credit for qualifying adoption expenses. Details change over time so be sure to research the latest. Also find out if your state offers additional adoption tax benefits.

In 2024, the maximum adoption tax credit is $16,810. If you received employer-provided adoption benefits, you can exclude up to $16,810 from your income.

If you make $252,150 or more, you can claim a lower amount. And if you make $292,150 or more you are not eligible. These numbers may change over time. You’ll use IRS form 8839 to file for this credit when you file your income tax return.

Tax-advantaged accounts

If your employer offers a pre-tax spending account for medical or childcare expenses, this can help you save. Your employer may add money to some of these accounts, as well.

Common accounts include:

• Health Savings Account (HSA). An HSA is like a personal bank account for medical expenses. The money you contribute is pre-tax, so you’ll get tax savings. The funds roll over every year — it’s your money to save, invest, and use until you retire.
• Flexible Spending Account (FSA). An FSA is an employer-owned account for medical expenses. The money you contribute is pre-tax, so you’ll get tax savings. But the money may expire at the end of the year.
• Dependent Care Flexible Spending Account (DCFSA). A DCFSA is an account for dependent services like preschool, summer day camp, before and after school programs, and child or adult daycare. The money you contribute is pre-tax, so you’ll get tax savings. But the money expires at the end of the year.

Read this article on tax-advantaged accounts for more information.

Remember, your Progyny Benefits Specialist is here to support you with any questions or help you need along the way.

Disclaimer: The information provided by Progyny is for educational purposes only and is not financial advice. Always consult a qualified professional for financial guidance.

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As the saying goes, sometimes the only constant in life is change.

This is certainly true with your family’s expenses over time. As kids grow and family priorities shift, childcare and other expenses change.

It can be helpful to start planning for your financial future and the unknowns ahead. Fortunately, small tweaks in how you save and spend can really add up.

Even small savings add up

It’s so important for all families to start saving, even in the early childhood years. This does a few things:

• It builds financial habits that can stay with you for a lifetime.
• The money will be set aside and can be used to gain interest or invest.
• Your savings will provide an emergency fund. An emergency fund should cover 3 to 9 months of living expenses.

To understand where you are today and make a plan for how much you can save, you’ll want to get an accurate idea of how much money is coming in – and how much is going out. Our article on building a spending plan will walk you through it.

Use these saving strategies

There are things you can do to start saving, and benefits from your employer that can help, too.

Here are a few ideas for things you can do to save:

• Review insurance policies. Request quotes from other companies. You may be surprised how much you can save by shopping around for auto and homeowner insurance.
• Cancel automatic subscriptions. Look at your credit card statements for automatic charges you rarely use, never use, or forgot you had. These may include streaming or digital services, memberships, or loyalty programs. Cancel the ones you don’t need.
• Chip away at debt. If you have any high-interest debt, try to pay that off as soon as you can. It will mean less interest you have to pay over time.
• Eat at home more often. If you can, eat fewer meals out. Eating at home tends to be cheaper, and as a bonus, is often healthier. When you do eat out, look for discounts, stick to water for your beverage, or think about splitting dessert.

Here’s how your employer may help:

• Get the 401k match. This is “free” money your employer provides to your retirement account.
• Enroll in tax-advantaged accounts. Health savings accounts (HSA) or flexible spending accounts (FSA) give you and your family a way to set aside pre-tax money for healthcare and dependent care expenses. Your employer may contribute as well. Learn more about tax-advantaged accounts.
• Check out wellness incentives. Some health plans reduce premiums if you participate in wellness activities.
• Review life and disability insurance options. Be sure you’re covered in case of a serious event.

Consider a financial advisor

Once you have a spending plan and savings habits in place, it’s a good idea to meet with a certified financial advisor for long-term planning.

Many employers offer free access to financial advisors through retirement plans. These professionals can help with long-term budgeting, estate planning and preparing a will, and personalized strategies for saving and investing.

This can help you meet your financial goals and gain peace of mind. Your Progyny Benefits Specialist is also here to support you along the way.

Disclaimer: The information provided by Progyny is for educational purposes only and is not financial advice. Always consult a qualified professional for financial guidance.

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Where would you like to be financially?

What type of home, car, lifestyle, and retirement do you hope for?

And what gives you joy and satisfaction when you spend money?

It can be helpful to create a roadmap to work towards your financial goals, while meeting your spending needs. This process can help you focus your spending on the people and things that you value the most.

Here are the basics of creating a spending plan roadmap.

1. Discover your current financial situation

Getting a really clear picture of your finances can be eye-opening for some people. Try not to judge your spending habits or feel any guilt. You can’t change any spending habits if you’re not aware of them, after all! This is simply your starting point.

First, list your sources of income. Subtract taxes from the amount.

Then, identify where you spend your money. Look at 3 to 6 months of:

• Bank statements
• Credit card statements
• Cash spending (you’ll probably need to write down your purchases to do this)

To get a better idea where the money is going, put your expenses into categories like:

Are you spending more than you’re earning? Are you spending money where needed, and where you would like to? Check out guidelines for how much to spend on different categories. And consider what’s important to you.

2. Develop a monthly spending plan

A plan will give you spending limits for your categories of expenses. If you have a partner or family, be sure to discuss this with them.

Here are 2 approaches to consider:

• Zero-based budgeting: Put every dollar you earn into a category and track how you spend it. At the end of the month, there should be $0 left to spend. This requires careful tracking. It may be easiest if you have simpler expenses.
• 50/30/20 budgeting: This requires less detailed tracking and may work well if you have more expenses to consider. You’ll spend about:
  • 50% of your income on needs
  • 30% of your income on wants
  • 20% of your income on savings

3. Use tools to stay in your spending plan

Your goal is to stick to your planned spending. There are many ways to track your budget, so see what works best for you. Ideas include: ·

• Spreadsheets (see these budget templates)
• Tracking spending by hand
• Budget apps (see these budget app reviews)
• Cash envelopes for “fun” spending

4. Troubleshoot and adjust

We all get off-track sometimes. When that happens, try these strategies:

• Keep track of all your spending, even those small purchases.
• Take a fresh look at your budget. Could it be more accurate?
• Review your budget daily or weekly to make it a habit.
• Adjust your budget for monthly bills that go up and down a lot, like utilities.
• Revisit your “wants” to see if any can be set aside until a better time.

Your needs will change over time with things like lifestyle changes, childcare, education, and medical costs. You may increase your 401k and life insurance. Being mindful and planning can help you reduce stress and keep your spending plan up-to-date.

Remember, your Progyny Benefits Specialist is here to support you with any questions or help you need along the way.

Disclaimer: The information provided by Progyny is for educational purposes only and is not financial advice. Always consult a qualified professional for financial guidance.

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Many employers offer resources and benefits to support children’s physical and emotional health. These can be great options to support your child’s unique development — and help you feel more confident and less stressed as a parent.

Let’s review some common benefits employers offer.

Remember, your Progyny Benefits Specialist is here to help answer questions as you look for family and childcare resources.

Disclaimer: The information provided by Progyny is for educational purposes only and is not financial advice. Always consult a qualified professional for financial guidance.

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You’ve probably heard of the Family and Medical Leave Act (FMLA), which provides unpaid leave after childbirth.

Did you know you may also be able to use FMLA before delivery? If you’re not able to work because of a pregnancy-related condition, you can use FMLA for unpaid time off. And your job is protected – you must be able to keep your job or an equivalent one. Your spouse may also be eligible for FLMA leave to care for you or your baby.

Why is this important?

When you’re pregnant, getting the care you need for your physical and emotional health is your top priority. That may mean taking time off to care for yourself, and that’s OK. Talk with your employer to find out how they can support you during this time.

What conditions qualify for FMLA?

Some common pregnancy-related conditions that may qualify for FMLA include:

• Anemia: Not enough red blood cells to carry oxygen, making you feel tired and weak.
• Congenital disorders: If the fetus has a health issue or isn’t developing as expected, you and your baby may need special care.
• Depression: Extreme sadness that gets in the way of your daily life and may last for weeks or more.
• Hyperemesis gravidarum: Very bad nausea and vomiting that doesn’t go away (worse than morning sickness). It may need to be treated in the hospital.
• Placenta previa: If the placenta is covering your cervix, you might need bed rest at home or treatment in a hospital.
• Preeclampsia: High blood pressure during pregnancy or after delivery. With this, your health needs to be monitored carefully.
• Preterm (early) labor: If you go into preterm labor (before 37 weeks), the baby may be born with a low weight or need special medical care.

FMLA may be taken in smaller chunks when you need it, even a day or two at a time (called “intermittent leave”). And you can use it even if you don’t receive medical treatment during your absence.

If you need time off work to care for your health during your pregnancy or after delivery, talk with your employer. Your Progyny Benefits Specialist can help support you with these conversations, too.

Disclaimer: The information provided by Progyny is for educational purposes only and is not legal advice. Always consult a lawyer for legal guidance.

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Being pregnant or having a new baby can make work more challenging. And during this time, your health and wellbeing need special attention.

Fortunately, there are laws to protect you and help you get the accommodation you need. (An accommodation is a change at work to help you stay safe and healthy.)

Know your rights

You’re protected by two important laws.

• Pregnant Workers Fairness Act (PWFA): This law requires employers to provide reasonable accommodation if you’re pregnant or have health issues from pregnancy or childbirth.
• Fair Labor Standards Act (FLSA): With this law, employers must give you break time and a private space (not a bathroom) to pump breast milk for 1 year after birth. It’s a great idea to learn more about your pregnancy rights under PWFA and pumping rights under FLSA.

What can I ask for?

Ask for things like:

• Permission to carry or keep water nearby
• Extra restroom breaks
• The chance to sit or stand if needed
• Breaks to eat and drink
• A private space to pump breast milk

You can ask for other help too, if it doesn’t cause “undue hardship” for your employer. Be open about what you need and work together on a plan.

Talk with your employer

Your employer can help you stay safe and supported at work. These tips can help you ask for what you need.

• Speak up about your needs. Tell your employer about your pregnancy and pumping needs. It’s a good idea to make any requests as early as possible to allow time for adjustments to be made.
• Provide documentation (if required). For many reasonable requests, medical documentation is not needed. But under certain circumstances, your employer may ask for it. A medical note from your provider might describe medical reasons for the work accommodation and required changes (such as avoiding heavy lifting, using a chair, or getting rest).
• Make a plan together. Work together with your employer to share ideas and come up with a plan. For example, discuss how often and how long your breaks will be during pregnancy or pumping.
• Keep records. Save emails, documents, and meeting notes related to your requests. This will help protect your rights.

Open communication will help you and your employer throughout your family-building journey. And be sure to reach out to your Progyny Benefits Specialist if you have any questions or need a little extra support.

Disclaimer: The information provided by Progyny is for educational purposes only and is not legal advice. Always consult a lawyer for legal guidance.

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It’s no surprise that having a baby can be expensive. A Peterson-KFF analysis found that in 2022, the average cost of pregnancy, childbirth in a hospital, and postpartum care was nearly $19,000. On average, out-of-pocket costs were almost $3,000.

Fortunately, understanding your coverage can help.

What is covered by insurance?

Routine, preventive pregnancy care should be covered by insurance if you stay in-network. This means no out-of-pocket costs for you.

However, not all services are fully covered. You may need to pay part of the cost through your deductible, co-insurance, or co-pay. If you have pregnancy complications or manage a health condition, your costs may be higher. And childbirth itself is expensive due to the hospital stay, anesthesia if used, care for you and the baby, and more.

To manage your expenses, it helps to:

• Understand your coverage
• Stay in-network for medical care, tests, and delivery
• Consider enrolling in tax-advantaged accounts

Tax-advantaged accounts

If your employer offers a pre-tax spending account for medical or childcare expenses, this can help you save. Your employer may add money to some of these accounts, as well.

Common accounts include:

• Health Savings Account (HSA). An HSA is like a personal bank account for medical expenses. The money you contribute is pre-tax, so you’ll get tax savings. The funds roll over every year — it’s your money to save, invest, and use until you retire.
• Flexible Spending Account (FSA). An FSA is an employer-owned account for medical expenses. The money you contribute is pre-tax, so you’ll get tax savings. But the money may expire at the end of the year.
• Dependent Care Flexible Spending Account (DCFSA). A DCFSA is an account for dependent services like preschool, summer day camp, before and after school programs, and child or adult daycare. The money you contribute is pre-tax, so you’ll get tax savings. But the money expires at the end of the year.

Read this article on tax-advantaged accounts and reach out to your Progyny Benefits Specialist if you’d like any guidance or help understanding your coverage. They’re here for you.

Disclaimer: The information provided by Progyny is for educational purposes only and is not financial advice. Always consult a qualified professional for financial guidance.

The post Pregnancy-related medical costs appeared first on Progyny.

Here’s an item for your new-baby to-do list: add them to your health plan. 

You have 30 to 62 days after your baby’s delivery date to add them to your coverage (this is called a “special enrollment period”). Check with your employer for special enrollment details. These details do vary, so it’s important to have a plan so you don’t miss the window. 

You may be able to change your coverage for other benefits during this time, too. Any changes would be effective from the baby’s date of birth. 

Things to consider

As you plan to change your benefit enrollments, think about: 

• What are your family’s expected medical expenses? 

• Are there other benefit programs to add your baby to? 

• How much would you like to contribute to your 401k? 

• Would you like to adjust your life insurance and disability coverage? 

If you miss the 62-day window, you’ll have to wait until the next open enrollment period to make changes. Be sure to add a reminder to your calendar to make this important update!  

Your Progyny Benefits Specialist is here for you if you have any questions. 

Disclaimer: The information provided by Progyny is for educational purposes only and is not legal advice. Always consult a lawyer for legal guidance.    

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Tax-advantaged accounts give you and your family a way to set aside money for healthcare and dependent care expenses.

They come with other benefits, too. For example, your contributions are tax-deductible. And with some plans, your employer may help contribute.

Common account types

• Health Savings Account (HSA). An HSA is like a personal bank account for medical expenses. The money you contribute is pre-tax, so you’ll get tax savings. The funds roll over every year — it’s your money to save, invest, and use until you retire. Learn more about HSAs.
• Flexible Spending Account (FSA). An FSA is an employer-owned account for medical expenses. The money you contribute is pre-tax, so you’ll get tax savings. But the money may expire at the end of the year. Learn more about FSAs.
• Dependent Care Flexible Spending Account (DCFSA). A DCFSA is an account for dependent services like preschool, summer day camp, before and after school programs, and child or adult daycare. The money you contribute is pre-tax, so you’ll get tax savings. But the money expires at the end of the year. Learn more about DCFSAs.

Keep in mind, these accounts can only be used for certain approved expenses. When spending the money from one of these accounts, it’s a good idea to save your receipts.

HSAs

Who can enroll?

You can enroll in an HSA if you have a qualified high-deductible health plan. You (and sometimes your employer) can contribute funds pre-tax.

How much can I contribute?

The contribution limits change over time. If you go over the limit, you may have to pay tax penalties. Be sure to research this every year!

• In 2025, you can contribute up to $4,300 if you have individual coverage. Or up to $8,550 if you have family coverage.
• In 2026, you can contribute up to $4,400 if you have individual coverage. Or up to $8,750 if you have family coverage.
• If you are 55 or older, you can contribute an additional $1,000.

What can I do with the funds?

You can use your HSA funds on qualified medical expenses, such as deductibles and co-pays (but not premiums). Your account rolls over every year, and you can keep the account if you switch jobs or health plans. You can only contribute if you have a high-deductible health plan.

If you cash out (without using the money for qualified medical expenses), you will have to pay taxes and possibly a tax penalty.

FSAs

Who can enroll?

You can enroll in an FSA if it’s offered by your employer. You do not need to enroll in a certain health plan to have an FSA. You can contribute funds pre-tax.

How much can I contribute?

The contribution limits change over time. Be sure to research this every year.

• In 2025, you can contribute up to $3,300.

What can I do with the funds?

You can use your FSA funds on qualified medical expenses, such as deductibles and co-pays (but not premiums). Typically, unused funds do not roll over to the next year, and you cannot cash out the account.

DCFSAs

Who can enroll?

You can enroll in a DCFSA if it’s offered by your employer. You do not need to enroll in a certain health plan to have a DCFSA. You can contribute funds pre-tax.

A DCFSA account can be used for children under 13 years old or adults you live with who are not able to care for themselves.

How much can I contribute?

The contribution limits change over time, and your employer may have lower limits. Be sure to research this every year.

• In 2025, if you make less than $155,000, you can contribute up to $2,500 if you’re married and file a separate tax return. Or up to $5,000 if you’re married and file a joint tax return, or if you file as single or head of household.
• If you make $155,000 or more, you can contribute up to $3,600.

What can I do with the funds?

You can use your DCFSA funds on qualified dependent care expenses, such as preschool, summer day camp, before and after school programs, and child or adult daycare. Unused funds do not roll over to the next year, and you cannot cash out the account.

How do I learn more?

Talk with your employer or health plan representative to understand which plans are available and right for you. Your Progyny Benefits Specialist is also here to help support you. It’s always OK to ask any questions you have.

Disclaimer: The information provided by Progyny is for educational purposes only and is not financial advice. Always consult a qualified professional for financial guidance.

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Open enrollment is the period when you can select your medical and other benefits for the next year. Understanding your health plan options can help you choose what’s best for your family and save money. But we know it can be confusing to sort through.

Your employer’s open enrollment guide provides short summaries to compare plans, detailed information about cost and what’s covered, and a list of benefit contact information all in one place. Also try to attend education sessions from your employer and benefits vendors — they’re a great way to get your questions answered.

What should I consider?

While you can’t predict the future, think about your goals and likely expenses for the upcoming year.

Situations to consider include:

• Growing your family (pregnancy or adoption)
• Childcare support
• Infertility benefits
• Managing a chronic condition
• Planned medical procedures

Comparing costs

It’s important to look at how much you might have to pay under each plan option. Here are the main costs to compare:

• Premium: what you pay each month for the plan
• Deductible: how much you pay before your health plan starts to pay
• Co-insurance: the percent of medical bill that you pay after reaching the deductible
• Co-pay: a set amount you may need to pay for each visit or service

Also note the out-of-pocket max — the most you’d have to pay every year. After that, your health plan pays 100%. This resets every year.

It’s good to know that preventive care is free. (For example, your annual check-up and many recommended screenings.) It will not count against your deductible or co-insurance.

Choosing the right plan

• Higher premium plans: You pay more each month but tend to pay less when you get care. They can be a good option if you or your family needs medical or specialist care often.
• High-deductible health plans: You pay less each month, but more when you need care. They often come with a health savings account, which allows you to save pre-tax money for medical care. These plans can be a good option if you don’t need care often.

Also be sure to look at the health plan’s provider network. If you and your family want to keep seeing your providers or specialists, check if they’re covered by the plan.

Tax-advantaged accounts

Find out if your health plan comes with a health savings account or if your employer offers other tax-advantaged accounts that allow you to put aside pre-tax dollars for health or childcare expenses. Those tax savings can really add up. And your employer may contribute money to these accounts, as well.

When estimating your health plan costs, consider your possible tax savings and contributions from your employer.

Common accounts include:

• Health Savings Account (HSA). An HSA is like a personal bank account for medical expenses. The money you contribute is pre-tax, so you’ll get tax savings. The funds roll over every year — it’s your money to save, invest, and use until you retire.
• Flexible Spending Account (FSA). An FSA is an employer-owned account for medical expenses. The money you contribute is pre-tax, so you’ll get tax savings. But the money may expire at the end of the year.
• Dependent Care Flexible Spending Account (DCFSA). A DCFSA is an account for dependent services like preschool, summer day camp, before and after school programs, and child or adult daycare. The money you contribute is pre-tax, so you’ll get tax savings. But the money expires at the end of the year.

Read this article on tax-advantaged accounts and reach out to your Progyny Benefits Specialist if you’d like any guidance or help understanding your benefit options. They’re here for you.

Disclaimer: The information provided by Progyny is for educational purposes only and is not financial advice. Always consult a qualified professional for financial guidance.

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