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Enforcing Mandatory Distributions: A Best Practice for Retirement Plan Sponsors

Retirement plan sponsors carry the responsibility of ensuring their plans operate smoothly and remain compliant. One often-overlooked but critical provision is the mandatory distribution of small balances.

Under most plan documents, participant balances under $7,000 must be distributed annually. These balances are either rolled into an IRA or cashed out with a check sent to the participant.

 

Benefits of Annual Enforcement

  • • Regulatory Compliance Staying aligned with IRS and ERISA requirements protects your organization from penalties and audits.
  • • Administrative Efficiency Removing small, inactive accounts reduces clutter and simplifies plan oversight.
  • • Cost Savings Recordkeeping fees are often assessed per participant. Fewer accounts mean lower administrative costs.
  • • Participant Support Distributions ensure former employees gain access to their funds, whether through an IRA rollover or direct cash-out.

A Proactive Approach

By enforcing this provision annually, plan sponsors demonstrate diligence, reduce risk, and enhance the overall health of their retirement plan. It’s a small step that delivers significant benefits for both the organization and participants.

Julia Sanders | AIF ®, CPFA®

Retirement Relationship Manager

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5371642

Interested in more?

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When most people think about financial planning, they picture investments, returns, or picking the “right” funds in their retirement plan.

But meaningful financial progress doesn’t start there.

It starts with you; your values, your goals, and what truly matters in your life.

Financial life planning is not about chasing performance. It’s about building a thoughtful, coordinated process that aligns every part of your financial life with the life you want to live.

  1. 1. Start With What Matters Most

Before any numbers or strategies come into play, take a step back and reflect:

  • What does a fulfilling life look like to me?
  • What are my top priorities. Now and in the future?
  • What does retirement mean beyond just “not working”?

For some, it’s freedom and flexibility. For others, it’s security, family, or the ability to give back.

Your financial plan should reflect these answers. Not someone else’s definition of success.

Clarity here drives every decision that follows.

  1. 2. Build Around Your Goals. Not Just Your Accounts

Once your priorities are clear, your financial strategy should begin to take shape. This is where a true planning process comes into focus.

It’s not just about your workplace retirement plan.   It’s about how all the pieces of your financial life work together, including:

  • Retirement income planning – How your savings turn into a reliable paycheck in retirement
  • Asset location – Placing investments in the right types of accounts (tax-deferred, Roth, taxable)
  • Tax planning – Being thoughtful about how and when income is recognized
  • Insurance planning – Protecting against risks that could derail your progress
  • Estate and legal planning – Ensuring your wishes are carried out and your family is supported

Each of these areas plays a role. When coordinated well, they create a more complete and resilient plan.

  1. 3. Focus on What You Can Control

A disciplined approach emphasizes the factors you can actually influence:

  • Saving consistently
  • Keeping costs low
  • Maintaining appropriate diversification
  • Staying invested through market cycles

Markets will move and sometimes unpredictably. A sound plan doesn’t try to outguess those movements. Instead, it’s built to endure them.

This is where process matters more than prediction.

  1. 4. Invest With Purpose

Your investment strategy should reflect your goals, time horizon, and comfort with risk. Not short-term headlines.

That means:

  • Avoiding emotional decisions during market volatility
  • Maintaining a diversified portfolio aligned with your plan
  • Understanding that risk and return are connected

The goal isn’t to eliminate risk, it’s to take the right amount of risk for your situation so you can stay on track.

  1. 5. Revisit and Adjust Over Time

Life changes and your plan should, too.

As your career evolves, your family grows, or retirement gets closer, your priorities may shift. Regular check-ins help ensure your strategy continues to align with what matters most.

Think of financial planning as an ongoing relationship with your future and not a one-time event.

A Real-Life Example

Consider Laura, a 42-year-old employee participating in her company’s retirement plan.

At first, Laura focused only on her 401(k), contributing enough to get the match and choosing a few funds she felt comfortable with. But she wasn’t sure if she was truly on track.

When she stepped back and went through a financial life planning process, a few important things became clear:

  • Her top priority wasn’t early retirement. It was flexibility in her late 50s to scale back work and spend more time with family.
  • She realized most of her savings were in pre-tax accounts, so she began adding Roth contributions to improve future tax flexibility.
  • She updated her beneficiaries and estate documents, something she hadn’t revisited in years.
  • She reviewed her insurance coverage to ensure her family would be protected if something unexpected happened.
  • And importantly, she began thinking about how her savings would translate into retirement income, not just an account balance.

Nothing about Laura’s situation required a drastic change. Instead, small, thoughtful adjustments, aligned with what mattered most to her, helped create a clearer, more confident path forward.

Bringing It All Together

Financial life planning is about connecting the dots.

It’s aligning your:

  • Goals
  • Investments
  • Income
  • Taxes
  • Protection strategies
  • Legacy wishes

…into one cohesive plan designed around you.

When each piece is working together, decisions become clearer and more intentional.

Final Thought

You don’t need to have everything figured out today.

Start with what matters most. Build a process around it. Stay consistent.

Over time, those thoughtful decisions can turn into something much more meaningful than just financial progress.  They can support a life that truly reflects who you are and what you value.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5653321

Interested in more?

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If you’ve recently joined your organization’s retirement plan committee, one of the most important responsibilities you’ll share is overseeing the plan’s investment lineup. For many, this can feel like stepping into unfamiliar territory with new terminology, new expectations, and real fiduciary responsibility.

The good news? You don’t need to be an investment expert to be a good fiduciary. What matters most is having a thoughtful process, asking the right questions, and staying focused on participant outcomes.

Here are four key areas to guide your approach.

  1. 1. Start with the Participant in Mind

At its core, your investment lineup should serve the needs of your employees and not the preferences of the committee.

Think about:

  • What is the general level of financial literacy among employees?
  • Are participants engaged, or do most rely on defaults?
  • What age demographics are represented (early career vs. nearing retirement)?

For many plans, this leads to a lineup anchored by qualified default investment alternatives (QDIAs) like target-date funds, complemented by a simplified menu of core options.

A helpful philosophy: make the right decision the easy decision. If participants do nothing, they should still be on a solid path.

  1. 2. Emphasize Simplicity Over Complexity

More investment options do not necessarily lead to better outcomes. In fact, too many choices can overwhelm participants and lead to inaction.

A well-constructed lineup often includes:

  • A target-date fund suite (as the default)
  • A small set of diversified core funds (e.g., U.S. equity, international equity, fixed income)
  • Possibly a capital preservation option (stable value or money market)

The goal is not to offer everything, but rather it’s to offer what’s necessary and useful.

From a fiduciary standpoint, simplicity can improve participant engagement and reduce the risk of poor decision-making.

  1. 3. Focus on Process, Not Predictions

One of the most common misconceptions is that committees are expected to “pick winners.” In reality, fiduciary responsibility is less about predicting performance and more about following a prudent, documented process.

This includes:

  • Establishing an Investment Policy Statement (IPS)
  • Defining clear criteria for selecting and monitoring funds
  • Regularly reviewing investments against those criteria

A consistent process demonstrates diligence and helps ensure decisions are made in the best interest of participants and not based on short-term market noise.

  1. 4. Understand Fees and Value

Fees matter, but context matters more.

Rather than simply selecting the lowest-cost funds, focus on value relative to cost:

  • Are participants receiving appropriate diversification?
  • Are the funds aligned with their intended role in the lineup?
  • Is performance reasonable given the strategy and market conditions?

Transparency is key. Committee members should understand:

  • Investment expense ratios
  • Recordkeeping and administrative costs
  • How fees impact participant outcomes over time

A thoughtful evaluation of fees is an essential part of fulfilling your fiduciary duty.

A Short Case Study: Turning Complexity into Clarity

A mid-sized manufacturing company with 120 employees had built its investment lineup over time by adding funds reactively rather than intentionally. By the time a new committee was formed, the plan offered 28 investment options, including multiple funds in the same asset class.

 

What they observed:

  • Over 60% of participants were invested in just 3–4 funds
  • Many employees held overlapping funds without realizing it
  • New hires were defaulting into a target-date fund but then moving out within months, often into more conservative options

The committee paused and asked a simple question: Is our lineup helping or hindering good decisions?

 

What they did:

  • Consolidated the lineup to 12 core options
  • Designated a single, well-structured target-date suite as the QDIA
  • Clarified each fund’s role within the lineup (no duplication)
  • Reviewed fees and replaced a few higher-cost funds where appropriate
  • Paired the changes with a simple participant communication campaign

 

The result:

  • Increased usage of the target-date funds as a long-term solution
  • Improved diversification among self-directed participants
  • Fewer “reactionary” investment changes during market volatility
  • Greater confidence from the committee in their fiduciary process

The takeaway: progress didn’t come from finding better funds. It came from creating a clearer, more intentional structure.

Bringing It All Together

Selecting an investment lineup is not a one-time decision, it’s an ongoing responsibility. The most effective committees:

  • Stay focused on participant outcomes
  • Keep the lineup clear and purposeful
  • Follow a disciplined process
  • Revisit decisions regularly with intention

This is where thoughtful plan design and participant guidance come together. A well-structured lineup, paired with clear communication and education, can meaningfully improve retirement readiness.

Final Thoughts

If you’re new to a plan committee, remember: you don’t have to have all the answers. You just need to ask the right questions and commit to a prudent process.

Done well, your role has a real impact. You’re not just selecting funds but rather helping employees build financial security for the future.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5460147

Interested in more?

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For many plan sponsors, the question is no longer whether to implement automatic features, it’s how to do it well.

With the continued evolution of legislation like SECURE 2.0 and a growing focus on participant outcomes, auto-enrollment and auto-escalation have become foundational plan design tools. But like any powerful tool, their impact depends on how thoughtfully they’re implemented.

This is where thoughtful plan design and participant guidance come together.

Let’s walk through a real-world case study, followed by a balanced look at the pros, tradeoffs, and what the research tells us.

Case Study: Turning Inertia into Progress

 

Employer Profile: Mid-sized manufacturing firm (250 employees)

 

Plan Design (Before):

  • Voluntary enrollment (opt-in)
  • Participation rate: 62%
  • Average deferral rate: 5.1%

 

Plan Design (After Enhancements):

  • Auto-enrollment at 6% default
  • Auto-escalation of 1% annually up to 10%
  • Default investment: target date solution
  • Re-enrollment campaign with education

 

Results After 18 Months:

  • Participation increased to 91%
  • Average deferral rate increased to 7.8%
  • Meaningful increase in employer match utilization

What changed?

Not the intent of employees but rather the structure around their decisions.

Auto features didn’t create new motivation, they removed friction.

Why It Works: The Behavioral Advantage

At the core of automatic features is a simple insight:

Most employees intend to save but don’t act.

Research shows:

  • 68% of employees say they should save more
  • Only ~3% actually follow through without intervention (NBER)

Auto-enrollment flips the default. Instead of requiring action to participate, it requires action not to. That shift alone can dramatically improve outcomes.

The Pros: Where Automatic Features Shine

 

  1. Increased Participation

Auto-enrollment consistently drives participation rates above 85–90% in many plans (BDO)

This is especially impactful for:

  • Younger employees
  • Lower-income workers
  • First-time savers
  1. Improved Savings Behavior Over Time

Auto-escalation helps participants gradually increase contributions without feeling it all at once.

It aligns saving with:

  • Pay increases
  • Career progression
  • Behavioral comfort
  1. Better Alignment with Retirement Outcomes

When auto-enrollment and escalation are combined, success rates (adequate retirement income) can increase dramatically.

One study showed improvement from:

  • ~46% probability of success → ~79% when multiple plan design features were applied (PubMed)

That’s the difference between “participating” and “on track.”

  1. Stronger Employer Value Proposition

Automatic features:

  • Simplify decision-making
  • Increase perceived benefit value
  • Demonstrate employer commitment to financial well-being

The Tradeoffs: Where Sponsors Need to Be Intentional

Automatic features are powerful, but they are not perfect.

 

  1. Default Rates Can Become Anchors

Employees often stay at the default.

A 3–6% default may:

  • Improve participation
  • But unintentionally cap savings behavior
  1. Cash Flow Sensitivity

Some employees, especially lower-income, may opt out due to immediate budget pressure.

Design matters:

  • Too high → opt-outs increase
  • Too low → savings fall short
  1. Leakage Still Undermines Outcomes

Even with strong plan design, participant behavior outside the plan matters.

Research shows:

  • Cash-outs at job change significantly reduce long-term impact (CNBC)
  • A meaningful portion of balances are withdrawn during transitions

Auto features help, but they don’t solve everything.

  1. Escalation Opt-Out Behavior

Auto-escalation participation tends to decline over time as participants opt out of increases.

This highlights a key reality:

Automation gets people started, but engagement sustains progress.

What the Research Really Says

There’s a tendency to think of auto features as a silver bullet. The data tells a more nuanced story:

 

What’s clearly true:

  • Participation increases materially
  • Savings rates improve
  • Outcomes are better than opt-in designs

 

What’s also true:

  • The impact is positive. But more modest than originally expected (CNBC)
  • Human behavior (opt-outs, job changes, cash-outs) reduces long-term effectiveness

In other words: Plan design drives momentum. But participant behavior determines outcomes.

Where Plan Sponsors Can Elevate the Outcome

The most effective plans don’t just implement auto features, they integrate them into a broader strategy:

 

  1. Start with the Right Defaults
  • 6%+ enrollment baseline
  • Escalation toward 10–12%

 

  1. Pair Automation with Communication
  • “Why it matters” messaging
  • Annual check-in prompts
  • Clear visibility into employer match

 

  1. Address Leakage
  • Rollover education
  • Portability solutions
  • Terminated participant outreach

 

  1. Re-enroll and Reset When Needed

Periodic re-enrollment can realign participants with stronger defaults.

Final Thought

Auto-enrollment and auto-escalation are not just plan features, they’re behavioral design tools.

When implemented thoughtfully, they:

  • Remove friction
  • Create momentum
  • Improve outcomes at scale

But the real value emerges when automation is paired with guidance.

Because the goal isn’t just participation.

It’s progress.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5344930

Interested in more?

Let's Talk Proactive HR
Managing money has never felt more complex. Rising costs, competing priorities, and the pressure to make smart financial decisions can leave anyone feeling uncertain. If you’ve ever questioned whether you’re budgeting correctly, saving enough, or choosing the right investments, you’re in good company. That’s why financial wellness matters so much in 2026. It’s not about mastering every financial concept. It’s about having the knowledge, tools, and confidence to make steady, informed decisions, both inside and outside your retirement plan.

Financial Stress Reaches Far Beyond Your Wallet

Money worries don’t stay neatly tucked away at home. They often show up as: • Difficulty staying focused at work • Anxiety about surprise expenses • Doubt about long‑term financial security Strengthening your financial wellness starts with the fundamentals: understanding your cash flow, building savings habits, and using available resources to reduce stress and improve stability.

Your Retirement Plan Is Just One Piece of the Puzzle

Your workplace retirement plan is a powerful tool for long‑term savings, but it’s not the whole story. Many people still feel unsure about how much to contribute, how to choose investments, or whether pre‑tax or Roth contributions make sense for them.   Financial wellness education helps you:   • Understand how your retirement plan fits into your broader financial life • Make confident decisions about contributions and investment options • See retirement savings as part of a larger strategy, not your only strategy   When you understand your plan, it becomes a foundation you can build on, not a source of confusion.

Budgeting and Saving: The Core of Financial Wellness

Before investing beyond your retirement plan, strong budgeting and saving habits create the stability you need. Even small steps can make a meaningful difference: • Tracking where your money goes • Building an emergency fund • Automating savings when possible • Setting realistic, achievable goals Financial wellness is about progress, not perfection. Every step you take strengthens your financial foundation.

Investing Beyond Your Workplace Plan

Once your budget and emergency savings are in place, exploring additional investment options can help you grow wealth over time. This might include: • Individual retirement accounts (Traditional IRA or Roth IRA) • Brokerage accounts for long‑term investing • High‑yield savings accounts for short‑term goals • Health savings accounts (HSAs), if available Understanding these tools empowers you to build a financial strategy that supports both your present and future needs.

You Don’t Have to Navigate This Alone

Many employers now offer financial education, tools, and resources to help employees make sense of budgeting, saving, and investing. These programs aren’t about judging where you are, they’re about helping you move forward with clarity and confidence. Using these resources can help you: • Ask better questions • Make informed financial decisions • Align your choices with your personal goals

Looking Ahead

Financial wellness isn’t about quick fixes or perfect decisions. It’s about building habits, understanding your options, and feeling more confident about your financial future. In 2026 and beyond, small steps, whether improving your budget, increasing savings, or exploring investments outside your retirement plan, can reduce stress and put you on a stronger path for tomorrow.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5344919

Interested in more?

Let's Talk Proactive HR

Managing money has never felt more complex. Rising costs, competing priorities, and the pressure to make smart financial decisions can leave anyone feeling uncertain. If you’ve ever questioned whether you’re budgeting correctly, saving enough, or choosing the right investments, you’re in good company.

That’s why financial wellness matters so much in 2026. It’s not about mastering every financial concept. It’s about having the knowledge, tools, and confidence to make steady, informed decisions, both inside and outside your retirement plan.

Financial Stress Reaches Far Beyond Your Wallet

Money worries don’t stay neatly tucked away at home. They often show up as:

• Difficulty staying focused at work

• Anxiety about surprise expenses

• Doubt about long‑term financial security

Strengthening your financial wellness starts with the fundamentals: understanding your cash flow, building savings habits, and using available resources to reduce stress and improve stability.

Your Retirement Plan Is Just One Piece of the Puzzle

Your workplace retirement plan is a powerful tool for long‑term savings, but it’s not the whole story. Many people still feel unsure about how much to contribute, how to choose investments, or whether pre‑tax or Roth contributions make sense for them.

Financial wellness education helps you:

• Understand how your retirement plan fits into your broader financial life

• Make confident decisions about contributions and investment options

• See retirement savings as part of a larger strategy, not your only strategy

When you understand your plan, it becomes a foundation you can build on, not a source of confusion.

Budgeting and Saving: The Core of Financial Wellness

Before investing beyond your retirement plan, strong budgeting and saving habits create the stability you need. Even small steps can make a meaningful difference:

• Tracking where your money goes

• Building an emergency fund

• Automating savings when possible

• Setting realistic, achievable goals

Financial wellness is about progress, not perfection. Every step you take strengthens your financial foundation.

Investing Beyond Your Workplace Plan

Once your budget and emergency savings are in place, exploring additional investment options can help you grow wealth over time. This might include:

• Individual retirement accounts (Traditional IRA or Roth IRA)

• Brokerage accounts for long‑term investing

• High‑yield savings accounts for short‑term goals

• Health savings accounts (HSAs), if available

Understanding these tools empowers you to build a financial strategy that supports both your present and future needs.

You Don’t Have to Navigate This Alone

Many employers now offer financial education, tools, and resources to help employees make sense of budgeting, saving, and investing. These programs aren’t about judging where you are, they’re about helping you move forward with clarity and confidence.

Using these resources can help you:

• Ask better questions

• Make informed financial decisions

• Align your choices with your personal goals

Looking Ahead

Financial wellness isn’t about quick fixes or perfect decisions. It’s about building habits, understanding your options, and feeling more confident about your financial future.

In 2026 and beyond, small steps, whether improving your budget, increasing savings, or exploring investments outside your retirement plan, can reduce stress and put you on a stronger path for tomorrow.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Adviser, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5190109

Interested in more?

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As more employees approach retirement, one question continues to rise to the surface:

“How do I turn my savings into a reliable paycheck?”

With the passage of the SECURE 2.0 Act, employers now have more flexibility to incorporate in-plan income solutions, including annuities, directly into their retirement plans. At the same time, participants still have access to out-of-plan income strategies once they leave employment or roll over their assets.

For HR leaders and CFOs, this creates both an opportunity and a decision point.

Why Income Guarantees Are Gaining Attention

For years, retirement plans have done an excellent job helping employees accumulate assets. But as retirement gets closer, the focus naturally shifts:

• Will my money last?

• How do I create consistent income?

• What happens if markets decline early in retirement?

Income guarantees, typically through annuity structures, help address these concerns by converting a portion of savings into predictable, often lifetime income.

In-Plan Income Guarantees: Pros and Considerations

What It Means

An in-plan solution allows participants to allocate a portion of their workplace retirement plan into an income product while still inside the plan.

 

Advantages:

 

• Simplicity and Access
Participants can elect income features within a familiar environment; no rollover required.

 

• Institutional Pricing
Plans may offer lower-cost options due to scale and fiduciary oversight.

 

• Fiduciary Vetting
Plan sponsors evaluate and monitor providers, helping bring a level of due diligence to the selection.

 

• Behavioral Benefits
Participants are more likely to engage with income solutions when they’re built into the plan experience.

 

Considerations:

• Fiduciary Responsibility
Adding an income solution introduces ongoing oversight, including insurer selection and monitoring.

 

• Portability Limitations
Income features may not always transfer seamlessly if an employee changes jobs.

 

• Plan Complexity
Additional features can increase administrative and communication demands.

 

• Limited Customization
Plan-based options may not fit every participant’s unique financial situation.

Out-of-Plan Income Guarantees: Pros and Considerations

What It Means

Participants roll assets to an IRA or other vehicle and purchase an income solution independently.

 

Advantages:

• Flexibility
Participants can tailor income strategies to their personal goals and timelines.

 

• Broader Selection
The retail marketplace offers a wide range of products and features.

 

• Portability
Income strategies are not tied to an employer plan.

 

• Integrated Planning
Allows coordination with tax, estate, and broader financial planning strategies.

 

Considerations:

• Potentially Higher Costs
Retail pricing may be higher depending on the structure.

 

• Decision Complexity
Participants must navigate choices without the built-in framework of a plan.

 

• Advice Dependency
Outcomes often depend on the quality of guidance received.

 

• Behavioral Risk
Without structure, some participants delay or avoid converting assets into income.

Why Consider One Over the Other?

There’s no one-size-fits-all answer and that’s exactly the point.

 

In-plan solutions can be especially effective when the goal is to:

• Increase access and participation across the workforce

• Provide a simplified, guided experience

• Leverage fiduciary oversight to support better outcomes

 

Out-of-plan solutions may be more appropriate when:

• Participants have more complex financial needs

• Customization becomes a priority

• Individuals are working closely with a financial advisor

A Practical Takeaway for Plan Sponsors

This doesn’t have to be an either/or decision.

Forward-thinking employers are increasingly viewing in-plan income as a foundational option, while recognizing that some participants will benefit from more personalized, out-of-plan strategies.

This is where thoughtful plan design and participant guidance come together.

The real opportunity is helping employees make the shift from focusing on how much they’ve saved to understanding how that savings can generate income they can rely on.

That’s where confidence increases and where plan sponsors can make a meaningful impact.

Final Thought

As income solutions continue to evolve, so does the role of the plan sponsor from offering a savings vehicle to supporting a more complete retirement income strategy.

Taking the time to evaluate these options today can help position your plan, and your people, for greater confidence tomorrow.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

This material and the opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine waht is appropriate for you, please contact me directly or consult another qualified professional

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5341149

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Rose Street Advisors is honored to be recognized once again by the National Association of Plan Advisors (NAPA) as one of the nation’s Top Defined Contribution (DC) Advisor Teams. This marks our fourth consecutive year receiving this distinction, an achievement that reflects our continued commitment to delivering exceptional retirement plan guidance to employers and their employees.

Among the 373 teams recognized nationwide, only 21 are located in Michigan, and we are the only firm in Kalamazoo to earn a place on this year’s list. For us, this recognition is more than a milestone; it is a meaningful affirmation of the work we do every day to support organizations, strengthen retirement outcomes, and serve as a trusted partner to leadership teams and plan participants alike.

A Team Built on Purpose and Partnership

Our retirement plan advisory team, led by Scott Higgins, AIF®, CFP®, CPFA®, NSSA®, Financial Advisor, and supported by Julia Sanders, AIF®, CPFA®, Retirement Relationship Manager, brings a disciplined, service‑driven approach to every plan we support. Their work spans fiduciary guidance, plan design consultation, investment due diligence, and participant education, all delivered with a focus on clarity, responsiveness, and long‑term impact.

Within our firm, we often return to a guiding principle that shapes our culture and our client experience:

“What we do and how we do it matters.”

This mindset influences how we prepare for meetings, how we communicate complex topics, and how we support organizations navigating the evolving retirement landscape. It’s a reminder that technical expertise is essential, but the way we show up for clients is equally important.

Recognition That Reflects Real-World Impact

NAPA’s Top DC Advisor Teams list highlights firms with at least $100 million in defined contribution assets under advisement and recognizes teams that demonstrate leadership, consistency, and meaningful contributions to the private retirement system. Unlike broader industry rankings, this list focuses on the work of individual teams within a single physical location—making it a direct reflection of the service we provide to employers and participants in our region.

We are grateful for the trust our clients place in us and remain committed to helping organizations build stronger, more confident retirement futures for their employees.

2026 NAPA Top DC Advisor Teams, created by NAPA. Presented in March 2026 for the previous year. All NAPA members with over $100 million in defined contribution assets under advisement made the list. 372 Advisors were recognized. Advisors pay a fee to hold out marketing materials. Not indicative of advisor’s future performance. Your experience may vary. Click here for the most recent award information.

This material and the opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine waht is appropriate for you, please contact me directly or consult another qualified professional

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5364245

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Retirement is one of life’s biggest transitions. Your paycheck may stop, but your expenses don’t. And your time, priorities, and goals often shift in meaningful ways. If you’ve never created a formal budget before, you’re not alone. Many people haven’t needed one during their working years.

The good news? It’s never too late to put a simple, flexible plan in place that helps you feel confident about your spending and your future.

Here are some practical tips to help you build, and stick to, a retirement budget that works for you.

1. Start with What You Spend Today

Before building a retirement budget, take a look at your current spending. This gives you a realistic baseline.

Focus on:

• Housing (mortgage/rent, taxes, insurance)

• Food and utilities

• Transportation

• Insurance and healthcare

• Discretionary spending (travel, hobbies, dining)

From there, adjust for what will change in retirement as some costs may go down (commuting, work expenses), while others may increase (healthcare, travel, leisure).

2. Separate “Needs” from “Wants”

A helpful way to simplify budgeting is to divide expenses into two categories:

• Needs: Essential expenses you must cover (housing, food, insurance, basic healthcare)

• Wants: Lifestyle choices (travel, entertainment, gifts, dining out)

This approach gives you flexibility. In years when markets are volatile or unexpected expenses arise, you can adjust discretionary spending without disrupting your core lifestyle.

3. Plan for Healthcare… More Than You Expect

Healthcare is often one of the most underestimated retirement expenses.

Be sure to account for:

• Medicare premiums and supplemental coverage

• Out-of-pocket costs (deductibles, prescriptions, dental/vision)

• Potential long-term care needs

Building a cushion here can help avoid surprises later.

4. Build in a “Buffer Zone”

Life rarely follows a perfect plan. Home repairs, helping family, or simply wanting to take an extra trip can all impact your budget.

A good rule of thumb is to include a buffer (5–10%) in your annual spending plan. This creates breathing room and reduces the stress of unexpected costs.

5. Align Your Budget with Your Income Strategy

Your retirement income may come from multiple sources:

• Workplace retirement plans (401(k), 403(b))

• Social Security

• IRAs or taxable accounts

The key is making sure your withdrawal strategy aligns with your spending needs so your money lasts while still supporting the lifestyle you want.

This is where thoughtful planning really matters; balancing reliable income with flexibility for the years ahead.

6. Revisit and Adjust Each Year

Your retirement budget isn’t a one-time exercise.  It’s a living plan.

Each year, take a few minutes to review:

• Changes in spending

• Market performance

• Income sources

• Life goals or priorities

Small adjustments over time can make a big difference in keeping your plan on track.

Final Thoughts

Creating a retirement budget isn’t about restricting your lifestyle.  It’s about giving yourself clarity and financial confidence. When you know where your money is going and how it supports your goals, it becomes much easier to enjoy retirement without second-guessing every decision.

If you haven’t created a budget yet, that’s okay. Starting now, even with a simple outline, is a powerful step toward making the most of the years ahead.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

This material and the opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine waht is appropriate for you, please contact me directly or consult another qualified professional

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5341120

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For HR leaders, finance professionals and retirement plan committees, sponsoring a 401(k) or 403(b) plan is both a valuable employee benefit and an important fiduciary responsibility. Plan sponsors must ensure that their plan operates in the best interests of participants while maintaining reasonable fees, competitive investments and quality services.

One of the most effective ways to evaluate the health of a retirement plan is through benchmarking. Benchmarking allows plan sponsors to compare their plan’s fees, services, investments, and design features to similar plans in the marketplace. The insights gained can help identify opportunities to improve the plan and demonstrate responsible oversight.

What Is Retirement Plan Benchmarking?

Benchmarking is the process of comparing your retirement plan against similar plans based on factors such as:

• Total plan assets

• Number of participants

• Industry type

• Plan features and services

The goal is to determine whether your plan’s costs and services are reasonable and competitive. Benchmarking also supports fiduciary oversight under the Employee Retirement Income Security Act, which requires plan fiduciaries to act prudently and ensure plan fees are reasonable relative to the services provided.

Why Benchmarking Is Important

Demonstrates Fiduciary Responsibility

 

Benchmarking provides documentation that plan sponsors are reviewing plan costs and services on a regular basis. This process helps support a prudent decision-making framework.

 

Evaluates Plan Fees

 

Retirement plan fees can vary widely depending on plan size and service structure. Benchmarking helps determine whether costs such as recordkeeping, advisory, and investment fees are reasonable compared with similar plans.

Improves Participant Outcomes

 

Benchmarking often uncovers opportunities to improve the plan, such as:

• Lower-cost investment options

• Additional participant education resources

• Enhanced retirement planning tools

• New plan features like automatic enrollment

Even small improvements can have a meaningful impact on long-term retirement savings.

Key Types of Retirement Plan Benchmarking

Plan sponsors typically review several different aspects of their retirement plan during benchmarking.

Fee Benchmarking

 

Fee benchmarking evaluates the overall cost of the plan relative to similar plans. Areas reviewed may include:

• Record keeping and administrative fees

• Investment expense ratios

• Advisor compensation

• Total plan cost per participant

This type of benchmarking is commonly conducted every one to three years.

Investment Benchmarking

 

Investment benchmarking reviews the plan’s investment lineup to ensure funds remain competitive and appropriate for participants. Committees often evaluate:

• Fund performance relative to benchmarks

• Expense ratios

• Risk characteristics

• Availability of lower-cost share classes

Investment monitoring is often performed quarterly or semiannually.

Service Benchmarking

 

Service benchmarking evaluates the quality and scope of services provided by vendors such as record keepers and advisors.

This may include reviewing:

• Participant education programs

• Retirement readiness tools

• Call center support

• Technology platforms and mobile access

• Plan administration support

Ensuring participants have access to strong resources can improve engagement and retirement readiness.

Plan Design Benchmarking

 

Plan design benchmarking compares your plan’s structure and features against industry norms such as:

• Employer matching contributions

• Auto-enrollment and auto-escalation features

• Vesting schedules

• Eligibility rules

Understanding how your plan compares to others can help ensure your retirement benefit remains competitive for attracting and retaining employees.

Request for Proposal (RFP)

 

A Request for Proposal is a comprehensive benchmarking process where plan sponsors invite multiple providers to submit proposals for plan services. This process evaluates pricing, services, technology, and overall value.

An RFP allows plan sponsors to test the marketplace and confirm whether their current provider remains competitive. Many organizations conduct an RFP every three to five years.

Final Thoughts

Benchmarking is an essential part of responsible retirement plan management. By regularly evaluating fees, investments, services, and plan design, plan sponsors can ensure their retirement plan continues to provide strong value for participants.

Regular reviews also help demonstrate fiduciary prudence and identify opportunities to strengthen the plan over time.

If your organization hasn’t reviewed its retirement plan recently, now may be the time.  Consider working with your advisor or retirement plan consultant to conduct a benchmarking review of your 401(k) or 403(b) plan to ensure it remains competitive, cost-effective, and positioned to support your employees’ long-term retirement goals.

Scott Higgins | AIF ®, CFP®, CPFA®, NSSA®

Financial Advisor

This material and the opinions voiced are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine waht is appropriate for you, please contact me directly or consult another qualified professional

Securities and Investment Advisory Services Offered Through M Holdings Securities, Inc. A Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors is independently owned and operated. #5299035 

Interested in more?

Let's Talk Proactive HR