Working in the U.S. (Series #3): Checklist of Company Benefits
From Pre-Tax Perks to Retirement Plans
This is the last series of working in the U.S. When pursuing employment in the U.S., understanding company benefits is not just an optional considerationโit is a key factor for tax optimization and long-term financial planning. This is especially important for international workers, as the U.S. healthcare system and retirement programs differ significantly from those in other countries. Planning ahead and leveraging available benefits can save substantial money and provide long-term security.
Health Insurance โ Personal Coverage
Healthcare costs in the U.S. are extremely high. A single emergency room visit can cost thousands of dollars, and surgeries may run into tens of thousands. Because of this, having personal health insurance is almost mandatory.
Employees should first check what their company-provided health insurance includes. Most comprehensive plans cover medical, dental, and vision. It is also critical to review deductibles and copay amounts to understand potential out-of-pocket costs.
Company health plans are typically deducted pre-tax, reducing taxable income. If the plan includes a Health Savings Account (HSA), employees can pay for medical expenses with pre-tax funds, and contributions to the account are tax-deductible, providing additional savings.
Key point: In the U.S., managing healthcare costs without insurance is extremely difficult. It is highly recommended to take advantage of employer-provided insurance and use HSA benefits whenever possible.
Paid Time Off & Wellness Leave
In the U.S., vacation policies vary by company. On average, first-year employees receive about 10โ11 days of paid vacation. By the fifth year, employees typically have around 15 days, and long-term employees may have up to 20 days or more. Companies may also provide additional wellness leave, often 5โ7 days, intended for health-related appointments. However, in practice, employees often use wellness leave as general personal vacation days. Sick leave may be offered separately, but this varies, and itโs important to confirm company-specific policies.
Extended vacations, such as taking a full month off at once like in some European countries, are generally challenging in the U.S. due to business needs and managerial approval requirements. Total paid time off usually includes a combination of vacation, wellness, and sick days, but consecutive days off may be limited.
Key point: Wellness leave does not have to be used solely for health reasons and can typically be used as normal vacation days. Coordination with your team is essential. It is also common for U.S. employees to not use all their vacation days due to workplace culture, performance pressures, or workload.
Retirement & Stock Options
U.S. Social Security
Employees are generally eligible for Social Security benefits after earning 40 credits, roughly equivalent to 10 years of work. The earliest age to receive benefits is 62, while the full retirement age ranges from 66 to 67. Detailed information is available at the Social Security Administration: SSA โ Credits and Benefit Eligibility.
Koreaโs National Pension and Totalization Agreements
For those from countries with Social Security agreements, such as Korea, time worked in the U.S. can be combined with periods of coverage in the home country. Even if the U.S. contribution period is less than 10 years, employees can combine it with their national pension back home to meet the required minimum, ensuring that they receive full pension benefits after returning.
Countries with totalization agreements:
- Asia: South Korea, Japan, Taiwan
- Europe: United Kingdom, Germany, France, Italy, Netherlands, Sweden, Switzerland, Belgium, Denmark, Norway, Spain, Ireland, Finland, Czech Republic, Slovakia, Slovenia
- South America: Brazil, Chile, Uruguay
Detailed list: SSA โ Totalization Agreements
401(k) โ U.S. Employer-Sponsored Retirement Plans
401(k) plans allow employees to contribute a portion of their salary, often with a company match. Contributions are pre-tax, lowering taxable income. These accounts are investment-based, meaning that contributions are invested in funds such as equities, bonds, balanced funds, or target-date funds. The combined principal and investment returns grow over time, and funds can be withdrawn as a retirement income stream. Foreign workers can also participate in these plans. Distributions typically begin at retirement age and can be taken as periodic payments or lump sums. For more information, see IRS 401(k) Overview.
401(k) investment options:
| Option | Description |
|---|---|
| Equity Fund | Invests in company stocks to pursue capital growth |
| Bond Fund | Invests in government or corporate bonds to provide steady returns |
| Balanced Fund | Combines stocks and bonds to balance growth and stability |
| Target-Date Fund | Automatically adjusts stock/bond ratio based on planned retirement year |
Key point: 401(k) is not just a savings accountโit is an investment-based retirement plan that can significantly grow your assets over time.
Commuter Benefits โ Pre-Tax Transportation
Many U.S. companies offer commuter benefits, such as pre-tax commuter cards. These can be used to purchase subway, bus, or train tickets, and if you drive, you can apply for it separately to pay parking expenses. Contributions are deducted pre-tax, lowering your taxable income. When combined with health insurance and retirement benefits, these perks maximize overall compensation.
Key Takeaways
- Leveraging pre-tax benefits can improve both take-home pay and long-term financial security.
- Confirm all available benefits: health insurance, retirement plans, commuter cards.
- For countries with totalization agreements, combine U.S. contributions with home country pension periods to meet minimum eligibility.
- 401(k) is an investment-based retirement planโlong-term contributions can grow substantially.
- Vacation and wellness leave can generally be used flexibly, but extended vacations require approval.
- Many U.S. employees do not use all of their vacation days due to workplace culture and performance expectations.
Return to Series #1: Understanding U.S. Work Visas
Written by Ordia | Date: January 5, 2026
This article aims to provide practical guidance for anyone preparing to work in the U.S., helping you make informed decisions about company benefits and long-term financial planning.