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When organizations begin exploring a merger or acquisition, most of the attention naturally goes to valuation, legal structure, synergies, and integration timelines. Yet one critical element often sits just beneath the surface; the retirement plan. For business owners, CFOs, and HR directors, overlooking how retirement plans will be handled during the transaction can lead to costly errors, compliance issues, and unnecessary employee confusion.

Retirement plans are governed by strict rules, documentation standards, and fiduciary oversight. During an M&A transition, decisions made in the early stages will determine how smoothly the plan integration unfolds. There are five key areas that plan sponsors should evaluate carefully as part of their planning process.

The first and most foundational decision is determining what will happen to the existing plans. Will both plans continue to operate separately? Will one be merged into the other, or will one be terminated? In some cases, plan sponsors may choose to freeze contributions temporarily while decisions are finalized. Each path carries its own set of timelines, document requirements, potential vesting implications, and participant communication needs. Engaging your ERISA counsel, recordkeeper, and advisor early ensures you select the approach that aligns best with your business and workforce.

Once the intended structure is clear, comparing each plan’s investment lineup and fee schedule becomes essential. Two plans often mean two investment menus, different share classes, and separate administrative and advisory fee structures. A side-by-side review can help determine which investments provide stronger performance histories, lower expenses, or more appropriate participant diversification. In many cases, a merger creates an opportunity to renegotiate pricing, streamline the menu, and strengthen fiduciary oversight going forward.

The human element of the merger cannot be overlooked. Eligibility, vesting schedules, and employer contribution formulas often differ between plans, and employees will want to know exactly how these changes affect them. How will service credit be recognized post-transaction? Will vesting accelerate for any employees? When will newly eligible participants enter the plan? Getting clear answers to these questions helps prevent errors in payroll feeds, eligibility tracking, and contribution calculations. It also supports employee confidence during a time when uncertainty can run high.

To protect the organization, a thorough compliance review is equally important. Plan sponsors should evaluate historical 5500 filings, nondiscrimination testing results, prior audit notes, top-heavy status, and whether plan documents are up to date. Identifying potential risks before integration avoids surprises later and may even uncover opportunities to correct issues before they escalate.

Finally, a strong communication strategy ties everything together. Employees notice changes to benefits quickly, and retirement plans are often one of the first areas they ask about. Clear, timely communication can ease concerns, reduce misinformation, and help employees understand how the transition impacts their savings and long-term goals. Frequent updates, educational meetings, FAQs, and reminders can significantly improve the participant experience and trust in leadership throughout the merger process.

Mergers and acquisitions are about more than financial consolidation. They represent a transformation of people, culture, and the benefits that support them. With thoughtful planning and coordinated execution, retirement plan decisions can support and not complicate the success of the transition.

If your organization is preparing for or considering a merger or acquisition, now is the time to evaluate your retirement plan strategy.

 

We would be happy to help you review your current structure, assess compliance exposure, and walk through options for integrating plans in a way that is efficient, defensible, and employee-focused. Feel free to reach out if you’d like to schedule a discussion or begin a plan review.

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. #5023541

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As you near retirement, your focus often shifts from building wealth to protecting it and to making sure the people and causes you care about are provided for. Estate planning plays a key role in that transition.

It’s not just about legal documents; it’s about financial confidence. An effective estate plan helps you protect your assets, guide your loved ones, and create a lasting legacy that reflects your values. Whether you’ve already retired or are counting down the years, here are six essentials to review.

1. A Current Will or Revocable Living Trust

 Your will or trust is the cornerstone of your estate plan. It ensures your assets are distributed according to your wishes and names the person who will oversee that process.

If it’s been several years since you last reviewed your documents or if your life has changed through marriage, divorce, relocation, or new grandchildren, it’s time for an update.

For many retirees, a revocable living trust offers additional benefits, including avoiding probate and providing privacy for your estate. A brief conversation with an estate attorney can confirm whether that approach makes sense for your situation.

2. Updated Beneficiary Designations

 One of the most common estate planning mistakes is overlooking outdated beneficiary forms. Accounts like IRAs, 401(k)s, and life insurance policies pass directly to the people listed on those forms even if your will says otherwise.

Take time to review your designations to ensure they reflect your current wishes. It’s a simple step that can prevent significant confusion (and heartache) later.

3. Powers of Attorney for Finances and Health Care

 Estate planning isn’t only about what happens after you’re gone, it’s also about protecting yourself while you’re alive.

A durable power of attorney authorizes someone you trust to handle financial matters if you’re unable to do so. A health care power of attorney or proxy gives another trusted person the ability to make medical decisions if you can’t.

These documents ensure that if life takes an unexpected turn, someone you choose, not the courts, will step in to help manage your affairs.

4. A Living Will or Advance Directive

A living will allows you to express your wishes for medical treatment if you face a serious or terminal illness. It covers decisions such as life support, pain management, and end-of-life care.

Having these preferences documented removes uncertainty for your loved ones and gives them confidence that they are following your wishes and not guessing at them.

5. An Organized List of Assets, Accounts, and Key Contacts

Your family or executor can’t carry out your plan if they don’t know where to find things. That’s why it’s essential to maintain an up-to-date list of:

• Financial accounts and institutions

• Life insurance and annuities

• Estate documents and passwords

• Contact information for your advisor, attorney, and accountant

Store this list securely and let a trusted person know how to access it if needed. Organization today can save your loved ones enormous stress tomorrow.

6. The Emotional and Psychological Side of Estate Planning

Retirement is a major life transition, one that brings both freedom and reflection. Many people find themselves thinking deeper about family relationships, legacy, and what they want their wealth to represent.

Estate planning isn’t only a financial exercise; it’s an emotional one. It can help bring clarity and purpose as you enter a new stage of life. Deciding how to pass on your assets can spark meaningful conversations with loved ones and help you articulate your values and priorities.

You might even find that reviewing your estate plan offers a sense of closure and peace — knowing you’ve put structure around what matters most to you and those you love.

Bringing It All Together

Estate planning is one of the most thoughtful gifts you can give your family. It ensures your wishes are honored, your assets are protected, and your loved ones are cared for.

If it’s been a while since you reviewed your plan, now’s a great time to start. Talk with your financial advisor and estate planning attorney to confirm everything still reflects your goals. You’ll gain not only legal clarity, but emotional comfort knowing your legacy is in good hands.

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. #4978787

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Retirement Planning for Small Business Owners: A Smart Approach to Business and Personal Wealth

As a small business owner, you’re often focused on running and growing your company such as managing employees, balancing cash flow, and planning for the next big opportunity. But one area that can easily slip down the priority list is your own retirement planning. Unlike employees who may rely on an employer’s retirement plan, small business owners are responsible for creating both the structure and the funding of their future financial security.

The good news: with the right strategies, you can build a retirement plan that not only helps secure your future but also supports your business goals today.

Why Retirement Planning is Different for Small Business Owners

Unlike employees, small business owners wear two hats: 

• Business Owner: focused on growth, operations, and legacy.

• Individual Investor: focused on personal wealth and long-term security.

The challenge lies in separating these two worlds. Many owners reinvest profits back into the business and delay saving for retirement, assuming the eventual sale of the business will provide for their future. While that may work for some, it creates risk if market conditions or the valuation don’t align with expectations. A strong retirement plan helps diversify wealth and reduce dependency on a single outcome.

Step One: Separate Business and Personal Wealth

Think of your finances as two buckets: 

• Business Wealth: the value of your company, cash flow, and any reinvested profits. 

• Personal Wealth: retirement savings, investments, and assets outside the business.

The key is to consistently transfer some business profits into personal accounts. This helps ensure your future financial security isn’t tied solely to the business’s success.

Step Two: Explore Retirement Plan Options

Small business owners have flexible retirement plan choices depending on business size, goals, and cash flow. Here are a few common options:

• SEP IRA: Simple, low-cost, and flexible may be best for sole proprietors or very small businesses.

• SIMPLE IRA: Works well for businesses with fewer than 100 employees, easy to administer, with required contributions.

• Solo 401(k): Ideal for one-person businesses or businesses with a spouse as the only employee; allows higher contribution limits.

• Traditional 401(k): Scales well for growing businesses, provides tax benefits, and attracts/retains employees. 

Each plan has unique rules on contributions, tax advantages, and administration. The right fit depends on your business goals and whether employee benefits are part of the picture.

Step Three: Balance Growth and Security

Reinvesting profits in your business can yield high returns, but it also concentrates your risk. By setting aside money in a retirement account, you create a safety net and diversify your long-term wealth. Many successful owners adopt a strategy of disciplined contributions of allocating a set percentage of profits each year to retirement savings, no matter what.

Step Four: Plan for an Exit Strategy

At some point, every owner transitions out of their business; whether through sale, succession, or closure. Your retirement planning should include:

• Valuation of the business to understand what it may be worth.

• Succession planning if family or employees are potential successors.

• Diversification of personal assets to ensure your financial future doesn’t rely solely on the business sale.

The Advisor's Role

As your plan advisor, my role is to help you evaluate options, separate business and personal goals, and create a strategy that works today and in the future. Whether that means designing a 401(k) for your company, guiding you on contribution strategies, or coordinating with your CPA and attorney on tax and estate considerations, the goal is the same: give you confidence that your hard work today translates into financial security tomorrow.

Final Thought

Running a small business is demanding, but your retirement shouldn’t be an afterthought. By taking a proactive, structured approach, you can protect your future, reduce risk, and enjoy the financial clarity that comes from knowing both your business and personal wealth are working together for your long-term success.

Click here to access our Retirement Planning Checklist for Small Business Owners

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. #4781648

Top 4 Reasons Healthcare
Costs are Rising for 2025

We all know healthcare costs increase annually. Medical trend increases are based on higher costs for prescription drugs, advancement in medical technologies, reinsurance costs and regulatory changes. So, what are the reasons for the higher than normal premium rates as we approach 2025? The aftereffects of COVID are creeping into the system. 

Following is a few of the consequences of the pandemic:

1. Many of the experienced nurses who shouldered the responsibility of caring for COVID patients were burned out. 

These brave medical personnel, who normally would have continued to work in the industry longer; left the field of nursing, which created a shortage. Higher wages, bonuses and hiring traveling nurses were the only way to keep facilities staffed to take care of patients. This increased expenses at all hospitals.

2. Beginning in 2021 through 2023, inflation has more than doubled compared to the previous 20 years. 

 This has not only impacted interest rates but also the cost of goods and services provided by health care organizations.

3. Health insurance companies were previously locked into 3-5 year reimbursement contracts with hospitals that would not let the hospitals receive more money for their services.

As the contracts come to term, hospitals are looking to recoup their losses and want insurance carriers to pay more for services.

4. We are still seeing an increased use of healthcare post-pandemic by those who delayed treatment and are either catching up on their treatments or have a chronic condition that has progressed which has placed them in a worse state. 

The list above highlights some of the key reasons why we anticipate you will see higher than normal rate increases than in the past. If you have any questions or would like to have a conversation, please reach out to us at Rose Street Advisors.

Chris Werme

LIC | Employee Benefits Advisor

As an advisor, Chris partners with clients to develop benefit strategies that meet organizational goals, budgets and company culture. From his background in accounting, he has a talent in picking out trends arising from claims data, reviewing analytics and negotiating renewal pricing with underwriters that serve his client’s well. He is an advocate in the healthcare world for his clients and their employees. On a personal note, Chris enjoys family and friends, especially while traveling, playing golf or boating. He is also a ‘Proud Papa’ to three grandsons!.

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PCORI Fees - What are They and When Do I Pay Them?

One of the many requirements in the Affordable Care Act (ACA) is the Patient-Centered Outcomes Research Institute (PCORI) fee, an often overlooked but essential aspect of compliance. The PCORI fee is a charge imposed on issuers of specified health insurance policies and plan sponsors of applicable self-insured health plans. It was established to fund the Patient-Centered Outcomes Research Institute, an organization tasked with improving the quality and relevance of evidence available to help patients, caregivers, and healthcare providers make informed health decisions.

 

Who Needs to Pay the PCORI Fee? 

The fee applies to:  •  Health Insurance Providers: Issuers of specified, fully insured health insurance policies. For fully insured health plans, the insurance carrier pays the PCORI fee on your behalf. No action is required of the employer. • Self-Insured Plan Sponsors: Employers or plan sponsors of applicable self-insured health plans, including Health Reimbursement Arrangements (HRAs). The employer is responsible for the PCORI fee for self-insured health plans and HRAs.

 

How Much is The PCORI Fee? 

The PCORI fee amount is adjusted annually and is based on the average number of lives covered under the policy or plan. As of the most recent update, the fee is: •  $3.00 per covered life for plan years ending on or after October 1, 2022, and before October 1, 2023.  •  $3.22 per covered life for plan years ending on or after October 1, 2023, and before October 1, 2024.  The fee increases slightly each year based on the projected increases in national health expenditures. 

 

Calculating the PCORI Fee

Calculating the PCORI fee involves determining the average number of lives (employee, spouse and dependents) covered under the policy or plan during the plan year. Please note that for HRA plans, an employer pays the PCORI fee only on the number of participating employees, not including covered spouses and dependents. There are several methods for this calculation: 1. Actual Count Method: Count the total number of covered lives for each day of the plan year and divide by the number of days in the year.  2. Snapshot Method: Add the total number of lives covered on one date (or more dates, if using the "more dates" variation) in each quarter of the plan year and divide by the number of dates used. 3. Form 5500 Method: Use the participant counts reported on the Form 5500 for the plan year, if filed. Plan sponsors can choose the method that best fits their reporting capabilities, but they must use the same method consistently within a given plan year. 

 

Reporting and Payment 

To report and pay the PCORI fee, issuers and plan sponsors must file Form 720 (Quarterly Federal Excise Tax Return) annually, by July 31 of the year following the last day of the plan year. The fee is reported in Part II of the form under "Patient-Centered Outcomes Research Fee". The latest version of Form 720 can be found here: https://www.irs.gov/pub/irs-pdf/f720.pdf (see Part II, IRS No. 133). Ensuring compliance with PCORI fee requirements is critical to avoid penalties. Failure to pay the fee or report it accurately can result in interest and penalties imposed by the IRS. For more detailed information, refer to the IRS instructions for Form 720 or reach out to your Rose Street Advisors team for assistance.

Alicia Ball

STRATEGIC OPERATIONS ADVISOR

As Strategic Operations Advisor, Alicia has the opportunity to lead the Employee Benefits Department every day. The focus of her role is to ensure the Department is operating at maximum efficiency, which allows us to ensure that our client’s needs and expectations are consistently exceeded. She accomplishes this efficiency through her strong communication, ability to maximize resources and staying true to Rose Street’s core values. Alicia’s tenure with Rose Street began in 2016 as our Maxwell Health Champion. She then spent time as a Employee Benefit Advisor where she built long lasting relationships with her clients that remain in place today even with her role change. In her spare time, Alicia tries to keep up with her very busy son, volunteers as a Big Sister for the Big Brother, Big Sister organization, and makes sure to spend as much time outside as she possibly can.

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