The HSA Strategy Retirees Wish They Started Sooner

For high-net-worth individuals, an HSA can be more than a place to pay today’s medical bills — it can act as a health-care retirement account, offering long-term tax savings and a dedicated pool for future medical costs.

The Triple-Tax Advantage

HSAs offer one of the strongest tax combinations available:

1. Pre-tax contributions from payroll deduction that lower taxable income

2. Tax-free investment growth

3. Tax-free withdrawals for qualified medical expenses — even years later

Grow It Like a Retirement Account

Investing most of the HSA — similar to an IRA or 401(k) — lets balances compound for decades.
Rose Street Advisors encourages keeping a money-market cash buffer inside the HSA, covering an unexpectedly expensive medical year while leaving the rest invested for growth.

Keep Receipts & Reimburse in Retirement

A powerful strategy is to pay out-of-pocket even using a credit card to get the miles/points/cash back.

Store every receipt in a digital vault, and reimburse yourself later in retirement. This keeps more dollars invested and growing tax-free while maintaining flexibility for future withdrawals.

Healthcare Costs Are Higher Than People Think

A healthy 65-year-old couple may need about $388,000 for healthcare costs in retirement under Medicare + Medigap Plan G + Part D (Milliman Retiree Health Cost Index, 2025). This excludes long-term care, making proactive planning essential.

Best Practices

1. Max out annual contributions (use catch-ups if eligible) through payroll deduction.

2. Invest HSA funds for long-term growth.

3. (Optional) Keep a money-market buffer inside the HSA in the event you need to use the funds for a costly medical year.

4. Pay expenses out-of-pocket when possible and even use a credit card that earn points/miles/cash back (and pay it off each month).

5. Store receipts in a digital vault for future tax-free reimbursements.

6. When in retirement, reimburse yourself for the total of your receipts to maximize compounding.

7. Then, treat the HSA as a health-care retirement account paying for medical expenses with pre-tax dollars in retirement.

Used strategically as a part of your overall financial life plan, an HSA becomes a tax-efficient engine for future healthcare expenses — protecting and growing wealth while working and giving retirees flexibility and long-term control.

Jeremy Heavey

AIF ® , NSSA ® | FINANCIAL ADVISOR

Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors, LLC is independently owned and operated. File #5052118

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Two Simple Tools for Smarter Retirement Planning

When it comes to planning for retirement, a few simple rules can make complex concepts easier to understand. Two of the most helpful are the Rule of 72 and the Rule of 55. Both can give you quick insight into how your savings work and how you can make more informed decisions with your retirement plan.

The Rule of 72: How Fast Will Your Money Double?

The Rule of 72 is a quick mental shortcut to estimate how long it will take your money to double based on your rate of return. Just divide 72 by your expected rate of return.

Example:

If your retirement account earns a 7% average annual return, your money doubles roughly every 10 years (72 ÷ 7 = ~10.3).

Why it matters for employees:

• It helps you understand the power of starting early.
• It shows how even small increases in contributions or investment return can significantly grow your balance over time.
• It encourages long-term thinking rather than getting discouraged by short-term market noise.

The Rule of 55: Accessing Retirement Savings Penalty-Free

The Rule of 55 is an IRS provision that allows you to take penalty-free withdrawals from your employer-sponsored retirement plan (like a 401(k) or 403(b)) if you leave your job in or after the calendar year you turn 55.

Key points:

• It applies only to the plan sponsored by the employer you just left not to old plans or IRAs.
• Withdrawals are still taxable, but the 10% early withdrawal penalty is waived.
• This rule can be especially helpful for employees considering early retirement, a career change, or a phased transition out of the workforce.

How employees can use this in planning:

• Build flexibility into your retirement strategy knowing this option exists can reduce pressure.
• If you're planning to retire early, you may leave money in your current employer's plan to take advantage of the penalty-free access.
• Use it as a bridge until Social Security or other income sources begin.

Why These Rules Matter Together

While the Rule of 72 helps you understand growth, the Rule of 55 helps you understand access. One encourages long-term accumulation; the other provides short-term flexibility. Together, they give employees a clearer picture of both how their retirement savings grow and how they can be used as life plans evolve.

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. #5059399

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Retirement, HSA, and Estate Updates at a Glance

As the calendar turns, the numbers shift — and with them, meaningful opportunities to strengthen retirement plans, optimize taxes, and plan for the next generation. The IRS has released the updated limits for 2026, and while many changes appear modest, they can add up to powerful long-term advantages for savers, investors, and families preparing for wealth transfer.

2025 vs 2026: Key Retirement, HSA, Estate, and Tax-Savvy Updates

Account / Rule	2025 Limit	2026 Limit	Why It Matters
401(k) / 403(b) / 457 employee deferral	$23,500	$24,500	More room for pre-tax or Roth savings.
401(k) Catch-Up (50+)	$7,500	$8,000	Extra boost for those nearing retirement.
Super Catch-Up (60–63)	$11,250	$11,250	Additional employee-only savings opportunity.
Combined Employee + Employer (§415)	$70,000	$72,000	Larger cap helps business owners and self-employed individuals.
Traditional / Roth IRA (under 50)	$7,000	$7,500	Modest increase enhances tax-advantaged growth.
IRA Catch-Up (50+)	$8,000	$8,600	Higher limit for late-career savers.
HSA (Self-Only)	$4,300	$4,400	Helps fund medical + retirement needs.
HSA (Family)	$8,550	$8,750	Slight bump for families.
HSA Catch-Up (55+)	$1,000	$1,000	Still a valuable tool for older savers.
Annual Gift-Tax Exclusion	$19,000	$19,000	Predictable gifting; couples can give $38,000.
Qualified Charitable Distribution	$108,000	$111,000	Tax-efficient giving directly from IRAs.
Charitable Giving for Standard Deduction filers	N/A	$1,000 Single/$2000 Married	Cash donations deductible even without itemizing.
529 → Roth IRA Conversion	Allowed up to $35,000 lifetime	Allowed up to $35,000 lifetime	Turns unused 529 funds into retirement savings.
Estate Tax Exemption (individual)	$13.99mm	$15mm	Higher threshold for tax-free transfers.
Estate Tax Exemption (married)	$27.98mm	$30mm	Expanded room for multi-generational planning.

What These Changes Mean for You

1. More Room For Retirement Savings

Higher limits across 401(k)s, IRAs, and HSAs create more tax-efficient space for long-term wealth building. For example, a saver age 60–63 could potentially contribute up to $35,750 in employee-only 401(k) contributions — and up to $72,000 when combined with employer dollars.

2. Strategic Charitable Giving Options

QCD limits rise to $111,000 in 2026, making it easier for IRA owners 70½+ to give generously while reducing taxable income. Even standard-deduction filers can deduct up to $1000 for single/$2000 for married filing jointly in cash/stock donations next year.

3. New Flexibility for 529 Plans

Unused 529 dollars can now be moved into a Roth IRA for the beneficiary, giving families a tax-efficient way to support a child or grandchild’s retirement — provided the account is old enough and earned-income rules are met.

4. Expanded Estate and Legacy Planning Power

With the 2026 exemption rising to $15 million per individual ($30 million per couple), families have additional room to transfer wealth tax-free. Paired with annual gifting and charitable strategies, this strengthens multi-generational planning.

5. A Holistic Planning Opportunity

Retirement accounts, HSAs, charitable tools, and estate strategies don’t stand alone — they work together. Thoughtful coordination can create more tax efficiency and better long-term outcomes.

Even small annual changes can have major lifetime impact. The 2026 updates offer more ways to save for retirement, strengthen philanthropic plans, manage healthcare expenses, and pass wealth efficiently to heirs. With a coordinated approach, these expanded limits help protect both lifestyle and legacy.

As the financial landscape evolves, staying proactive ensures your planning keeps pace. Use the new 2026 limits to your advantage — and position yourself and your family for a stronger financial future.

Jeremy Heavey

AIF ® , NSSA ® | FINANCIAL ADVISOR

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How Inflation Can Affect Retirement Savings and Ways to Mitigate Its Impact

Planning for retirement is challenging enough, but one factor often underestimated is inflation, the gradual increase in prices over time. Even modest inflation can erode the purchasing power of your savings, meaning the money you’ve set aside may not stretch as far in the future as it does today. Understanding how inflation works and taking steps to protect against it can make a significant difference in your long-term financial security.

How Inflation Impacts Retirement Savings

• Reduced purchasing power: A retirement goal of $80,000 annually today might require $110,000 or more in the future,
depending on inflation.
• Eroded investment returns: If your portfolio earns 6% but inflation is 3%, your real return is closer to 3%.
• Higher cost of living in retirement: Healthcare, housing, and daily expenses often rise faster than general inflation.

Historical Inflation Trends

Over the past 30 years, inflation in the U.S. has averaged roughly 2–3% per year, but there have been periods of higher inflation (such as the early 1980s and the recent 2020s) showing that rates can fluctuate significantly. Planning for a range of potential inflation scenarios is key to protecting your retirement lifestyle.

Strategies to Mitigate the Impact of Inflation

• Invest for growth: Incorporating equities can help your portfolio outpace inflation over the long term.
• Diversify your retirement accounts: Using tax-advantaged accounts like 401(k)s, IRAs, or Roth accounts can help increase
after-tax income.
• Consider inflation-protected investments: Options like Treasury Inflation-Protected Securities (TIPS) or certain annuities can offer
safeguards.
• Delay Social Security when possible: Benefits increase each year you delay up to age 70, helping protect income from inflation.
• Review and adjust regularly: Periodically updating your retirement strategy ensures your plan stays aligned with changing
economic conditions.

Next Steps

Inflation can quietly erode your retirement savings if left unaddressed. Take action now by reviewing your current retirement plan, assessing how it accounts for inflation, and exploring strategies to protect your future purchasing power. Schedule a consultation with a financial advisor today to create a plan tailored to your goals and safeguard your financial security in retirement.

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

Financial Advisor

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As 2025 comes to a close, taking a few strategic steps now can help reduce your tax liability and position you for a stronger financial year ahead. Beyond just contributions and deductions, savvy planning can include gifts, income timing, and leveraging credits. Here’s the top 7 ideas for the 2025 year-end.

1. Maximize Retirment Contributions

Contribute to retirement accounts like 401(k)s, IRAs, and HSAs to lower taxable income:

- 401(k): Up to $30,500 (including catch-up contributions for those 50+)

- IRA: Up to $7,000 ($7,500 if 50+)

- HSA: $4,300 for individuals, $8,550 for families

These contributions not only reduce taxes today but also grow tax-deferred (or tax-free for Roth accounts).

2. Utilize Tax-Loss Harvesting

Selling investments that have declined in value can offset capital gains from other investments. This strategy, known as tax-loss harvesting, allows you to reduce taxable income by up to $3,000 in excess losses.

Carryover of Losses:
If your total net capital loss exceeds $3,000 ($1,500 if married filing separately), the remaining loss can be carried over to future tax years. You can apply it against future capital gains, and if any amount remains, up to $3,000 per year can continue to offset ordinary income until the loss is fully used. This allows investors to gradually use larger losses without losing the tax benefit.

3. Accelerate Deductions & Defer Income

- Accelerate Deductions: Prepay medical expenses, property taxes, or charitable contributions this year to reduce taxable income (if you are itemizing on your taxes).

- Defer Income: Delay bonuses, consulting income, or other earnings to next year if you expect a lower tax bracket.

4. Review Tax Withholding

Check your paycheck or estimated tax payments to ensure you're not overpaying or underpaying. Adjusting whitholding before year-end can prevent surprises come April.

5. Take Advantage of Tax Credits

Maximize credits like the Child Tax Credit, Earned Income Tax Credit, or education-related credits. These directly reduce your tax bill rather than just your taxable income.

6. Leverage the Gift Tax Exclusion

Consider using the annual gift tax exclusion ($18,000 per recipient in 2025) to shift wealth to family members without incurring gift taxes. Gifts can reduce the size of your taxable estate while helping loved ones financially.

Example: Did you know that a married couple can give a married child and their spouse $72,000 in total?

Mom gives daughter $18,000
Dad gives daughter $18,000
Mom gives son-in-law $18,000
Dad gives son-in-law $18,000

By splitting gifts this way, the couple fully uses the annual exclusion for each recipient without triggering gift taxes.

7. Make Qualified Charitable Distributions (QCDs)

If you are 70½ or older, consider using a Qualified Charitable Distribution from your IRA. QCDs allow you to donate up to $108,000 directly to a qualified charity in 2025, counting toward your required minimum distribution (RMD) while excluding the donation from taxable income. This strategy can lower your adjusted gross income and potentially reduce Medicare premiums or tax on Social Security benefits

Year-end tax planning is about more than just checking boxes—it’s an opportunity to optimize savings, leverage credits, and strategically position your finances for the coming year. A review with a tax professional can ensure these strategies fit your situation and maximize your benefits. taxable income. This strategy can lower your adjusted gross income and potentially reduce Medicare premiums or tax on Social Security benefits.

This material and the opinions voiced are for general information only and are not intended to provide speciﬁc advice or recommendations for any individual or entity. To determine what is appropriate for you, please contact your Rose Street Financial Professional. Information obtained from third-party sources are believed to be reliable but not guaranteed. The tax and legal references attached herein are provided with the understanding that neither M Financial Group, nor its Member Firms are engaged in rendering tax, legal, or actuarial services. If tax, legal, or actuarial advice is required, you should consult your accountant, attorney, or actuary. Neither M Financial Group, nor its Member Firms should replace those advisors.

Jeremy Heavey

AIF ® , NSSA ® | FINANCIAL ADVISOR

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In the spring of 2008, my wife and I spent several days trekking through Peru’s Andes Mountains on our way to Machu Picchu. The climbs were steep, the air thin, and the scenery breathtaking. But what we remember most is the team of sherpas who turned a demanding expedition into an unforgettable journey—while staying completely out of the spotlight.

From the first morning, the sherpas set the pace and prepared us for each leg of the climb. They balanced heavy packs on donkeys, cooked full meals at 10–15,000 feet, and somehow managed to bake a surprise birthday cake for my wife halfway through the trip. Their skill with the tools of the trade—sturdy ropes, perfectly packed gear, and altitude-tested cooking equipment—kept us comfortable and safe while we focused on the views and the experience.

At every scenic overlook, they urged us to pause, breathe, and take in the beauty. Yet when it came time for photos at the summit, the sherpas quietly stepped behind the camera. They were happiest as the experts behind the scenes, making the journey possible while letting us enjoy the moment.

That trek mirrors how our wealth-management team serves clients. We realize how hard you have worked so hard to get to the point you have and why you are now seeking professional guidance. We begin by understanding your goals and mapping the route. We then take over and carry the load through this next lag of the journey—investment research, tax strategy, regularly trading to take advantage of the trends, keeping your portfolio wisely diversified, estate planning—and we bring the right tools and partnerships so you can focus on life’s vistas. When markets shift or unexpected challenges arise, we adjust the path and keep you moving toward your destination.

Just as our sherpas found joy in seeing us reach the amazing view at the end, we find fulfillment in helping clients achieve their financial summits. The amazing view you have of seeing your kids and grandkids enjoy experiences you have worked so hard for and the celebrations are yours; we’re the steady, experienced guides working quietly in the background to make the climb safe, rewarding, and memorable.

Jeremy Heavey

AIF ® , NSSA ® | FINANCIAL ADVISOR

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The Pre-Flight Checklist: Double Check Your Beneficiaries

When we flew in Jim’s Cessna 170, we had no idea it would be the last time. For years, my son has shared his dream of becoming a pilot. Spending time with Jim and flying in his plane is a memory we will never forget. Jim was a passionate aviator and generously shared his love of flying with my son. Shortly after this flight, Jim was diagnosed with a terminal illness and passed away months later.

While we don’t often think about it, none of us know when our last flight will be. Just as pilots follow a strict pre-flight checklist before takeoff, there are important steps we encourage our clients to take to ensure their assets support the people and causes they care about most.

1. Verify Your Current Beneficiaries

Just as a pilot confirms fuel levels before takeoff, check that listed beneficiaries on your investment accounts are accurate. Life changes such as marriage, divorce, births, or deaths may require updates to reflect your current wishes.

2. Confirm Accuracy of Information

A pilot checks all instruments before takeoff to avoid errors. Likewise, ensure that the names, contact details and Social Security numbers of your beneficiaries and are correct to prevent complications later.

3. Align Your Legacy with Your Passion

Before takeoff, a pilot sets their course. Consider whether your beneficiaries reflect your values and interests. Naming a non-profit organization that aligns with your passion will continue inspiring future generations and further your legacy.

Just as Jim's legacy lives on through his passion for aviation and the memories he created, we have the opportunity to leave our own legacy. Taking the time to review and update your beneficiaries ensures that your hard-earned assets are directed to the people and causes that matter most. It’s a simple yet powerful way to safeguard what’s important to you. Remember, life is unpredictable, and while we will never know last flight takes place, we can ensure our financial legacy is ready to take off when the time comes.

7642154.1This material and the opinions voiced are for general information only and are not intended to provide speciﬁc advice or recommendations for any individual or entity. To determine what is appropriate for you, please contact your Rose Street Financial Professional. Information obtained from third-party sources are believed to be reliable but not guaranteed. The tax and legal references attached herein are provided with the understanding that neither M Financial Group, nor its Member Firms are engaged in rendering tax, legal, or actuarial services. If tax, legal, or actuarial advice is required, you should consult your accountant, attorney, or actuary. Neither M Financial Group, nor its Member Firms should replace those advisors.

Jeremy Heavey

AIF ® , NSSA ® | FINANCIAL ADVISOR

Jeremy is passionate about partnering with individuals and families to identify what is important in their lives and creating a comprehensive financial strategy to help them reach their life goals. This holistic approach allows Jeremy and the wealth management team to ensure the specific needs of the client are front and center as they make investment recommendations and collaboratively design custom-tailored financial plans.

Jeremy has a professional track record starting, leading, and managing for-profit and non-profit organizations. He is a graduate of Taylor University and has completed business programs at both Hong Kong Baptist University & Harvard Business School. Jeremy is also formally trained and certified in behavioral assessment, conflict management and life coaching. Jeremy, his wife Kim and their 4 kids reside in Kalamazoo. They love spending time exploring the outdoors, fixing up their farmhouse, and living life with friends and extended family.

Fun fact: Jeremy has been playing drums since he was 13 years old and made callbacks for the Blue Man Group.

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When our oldest got her first job, we were thrilled for her! As her parents, we were trying to balance being excited while helping her learn how to manage the bigger paychecks than she had seen in the past from babysitting and other odd jobs. As your teen(s) start earning their own money, guiding them through a few key financial moves can set them up for future success. Here are a few ideas to get them started on the right track!

1. Help Them Set Up a Budget and Track Spending

With that first paycheck comes the responsibility of managing money. Encourage them to create a budget that lists their income and expenses—think car expenses, cell phone bill, donations, college savings and of course, all those fun extras. Just like us adults, a solid budget will help them keep tabs on where their money is going and make sure they’re living within their means. There are plenty of budgeting apps and tools out there that can make this task easier and even a bit enjoyable.

Budgeting tips to share:

• Start with a basic budget or recommend a budgeting app.

• Emphasize the importance of including savings in their budget so they get used to living on less than they make from the beginning.

• Suggest reviewing and adjusting the budget regularly as their financial situation evolves.

2. Encourage Building an Emergency Fund

As we know, life has a way of throwing unexpected expenses our way and it is important for them to start planning for unexpected expenses (or even opportunities like participating in a fun experience with their friends). Advise them to save up enough to cover three to six months of normal expenses in a separate savings account. This emergency fund will act as a financial safety net, helping them not always coming to their parents when those surprises come up.

How to build an emergency fund:

• Help them set a savings goal based on their monthly expenses.

• Suggest setting up automatic transfers to their savings account each payday.

• Remind them that even small, consistent deposits will grow over time.

3. Talk About Starting Retirement Savings

It might seem far off, but starting to save for retirement now can make a huge difference later on financially and even mentally, teaching them the discipline to live on less than they make. As soon as your teen has an earned income and needs to file a tax return, they are now eligible to contribute to a Roth IRA. Your teen can put up to the annual max, or their actual earned income, whichever is lower. You (or a grandparent) could even offer a matching program! For every dollar they put in, the parent puts in a dollar. The earlier they start, the more they’ll benefit from compound interest. Don’t forget, if needed, they can withdraw the basis (amount they contribute, not the growth) at any point without a penalty.

Retirement savings advice:

• Recommend opening and beginning to fund a Roth IRA.

• If they have a company retirement plan that they are eligible for, encourage them to consider contributing enough to their 401(k) to get any

employer match.

• Suggest aiming to invest around 10-15% of their income for retirement.

Wrapping Up

Helping your teen navigate their first job and their new financial responsibilities can make a big difference in setting them up for a successful future. By guiding them through budgeting, building an emergency fund and starting retirement savings, you’re giving them the tools they need to thrive financially. Your support and advice will help them tackle these early financial steps with confidence and prepare for a bright future ahead.

Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors, LLC is independently owned and operated. File #6968916.1

Jeremy Heavey

AIF ® | FINANCIAL ADVISOR

Fun fact: Jeremy has been playing drums since he was 13 years old and made callbacks for the Blue Man Group.

Interested in more?

Let's Talk

It is officially Summer! Favorite summer past times of grilling burgers, hotdogs, swimming, boating, gardening, camping and just spending time outside is here. A staple in many American refrigerators in the summertime, and throughout the year, is Ketchup. Ketchup has a way of giving those grilling favorites that much needed edge to just simply make it better. Just like ketchup gives our grilling favorites the edge needed, catch-up contributions in a 401k can serve the same purpose.

If you or someone you love is still working and is or going to turn 50 this year, while the normal contribution limit to a 401k/403b plan is $23,000 for 2024, those 50 and older can make catch-up contributions of an additional $7,500, totaling $30,500. The extra amount contributed can really give an investor’s portfolio the extra boost needed to stay on track or get back on track for retirement goals.

On December 29, 2022, Congress passed the SECURE 2.0 Act, which stands for Setting Every Community Up for Retirement Enhancement. Several of the provisions outlined in the act have delayed start dates. Beginning in 2025, Section 109 of the SECURE 2.0 Act allows employees who are 60-63 years old to contribute at a “super” catch-up rate! The super catch-up allows for investors to make an additional 50% increase to the $7,500, which would result in $11,250 in additional catch-up contributions in 2025. This catch-up contribution is planned to index to inflation and could mean possibly more contributions in future years.

If you have questions or want to learn more, please reach out and let's chat.

Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors, LLC is independently owned and operated. File # 6718069.1

Jeremy Heavey

AIF ® | FINANCIAL ADVISOR

Fun fact: Jeremy has been playing drums since he was 13 years old and made callbacks for the Blue Man Group.

Interested in more?

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All Things 401k | 5 Helpful Ways to Organize Your 401(k) Fiduciary Files

Managing Discover top strategies for maintaining organized 401(k) fiduciary files with best practices for compliance and peace of mind. As a plan sponsor, one of your primary responsibilities is ensuring that your company's retirement plan operates smoothly and within the boundaries of compliance regulations. This is no small feat, especially when dealing with the complexities of a 401(k) plan. One of the ways to help enable hassle-free management is by maintaining neat and tidy records. This article will provide you with some practical tips and best practices on how to organize and document your fiduciary files.

Why Is Retirement Plan Documentation Important?

First, let's delve into why retirement plan documentation is crucial. Proper documentation serves as evidence of your diligent fiduciary oversight. It helps to show that you are actively managing your company's retirement plan in accordance with ERISA regulations. Moreover, it helps streamline the auditing process and makes it easier to answer inquiries from your plan's third-party administrator (TPA).

Best Practices for Organizing Fiduciary Files

Now, let's explore some of the best methods to keep your fiduciary files in order: 1. Create a Fiduciary File System: Designate a secure location, preferably a locked file cabinet or encrypted digital storage space, for all plan-related documents. This includes the plan document, amendments, participant communications, government filings, and investment reviews. Action item: Create a new master folder and label it “401(k) Plan”. Within this master folder, create subfolders with important categories such as, “Plan Document and Amendments”, “Participant Communications”, “Annual Filings”, and “Investment Reviews”. Ensure that relevant documents are correctly placed within their corresponding subfolders. 2.Implement a Document Retention Policy: Develop a policy that outlines for how long different types of documents should be retained. For instance, the plan document and amendments should be kept permanently, while records related to plan operations should typically be kept for at least six years. 3.Regularly Update Your Files: Make it a habit to update your files regularly. This includes adding new documents as they come in and removing outdated ones based on your retention policy. 4.Use Clear Labeling and Categorization: Clearly label each document with its type and the date it was created or received. Categorize documents based on their nature, such as plan administration, investment management, participant records, and compliance tests. Folder / File Name Examples •Plan Document and Amendments / Plan Document-ABC Company-401k Plan-2010.docx •Investment Reviews / Investment Review-ABC Company-401k Plan-Q1 2024.docx •Participant Communications / Participant Education-ABC Company-401k Plan-Q1 2024.docx 5.Ensure Accessibility While Maintaining Confidentiality: Balancing accessibility with confidentiality is vital when managing fiduciary files. The documents should be readily retrievable as needed, yet stored in a manner that protects sensitive data from unauthorized access. Implement safeguards such as password protection for sensitive documents and restrict access to authorized personnel only. Let’s take the company's census file as an example. This file holds sensitive information like Social Security numbers, dates of birth, salaries, 401(k) deferral amounts, employer match, and profit sharing calculations. This file should be safeguarded with a password and is only accessible to employees who require this information for their roles. For instance, a newly hired temporary employee would not have access to this file, ensuring the information remains confidential.

Reduce the Hassle of Compliance Testing

One of the many benefits of maintaining organized fiduciary files is how much easier it makes compliance testing. For example, your plan's TPA usually asks for uploading census data by January 31st to run their compliance tests for the year. By having clean data and organized files, this task becomes significantly less daunting. Instead of spending hours searching for and compiling the requested information, you can access it within a few clicks. This not only saves you valuable time, but it also helps ensure that your TPA has all the necessary information to perform accurate compliance tests.

Structure for Success

Maintaining a well-organized 401(k) is more than just a tidy system of records. It's an outward sign of effective fiduciary oversight, accurate audits, and comprehensive compliance testing. As a plan sponsor, you play an important role in the smooth operation of your company's retirement plan. However, you don't have to navigate this path alone. Partnering with an experienced 401(k) advisor can offer valuable assistance, provide answers to your questions, and help ensure you're on the right track. Remember, the success of your 401(k) plan is not just about its performance but also about its organization and compliance. We are here to provide guidance, help you stay organized, and support the development of a bright financial future for your employees.

JULIA SANDERS

AIF®, CPFA® | Retirement Relationship Manager

Meet Julia, a people-focused life-long learner with several years of experience in the retirement plan industry. Throughout her career, Julia has been committed to maintaining strong client relationships by providing incredible customer service. She is passionate about helping clients define and plan for their retirement goals. Julia’s daily role at the firm energizes and reinforces her commitment to client-focused work.

SCOTT HIGGINS

AIF®, CFP®, CPFA® | Financial Advisor

Since 2012 at Rose Street, Scott has been responsible for helping the firm's individual wealth management clients with income strategies for retirement and consulting with employers with their employee retirement plans. In free time, he enjoys golf, biking, skiing, cooking, and traveling. Fun fact, Scott has a hobby of filling growlers with coins!

Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors, LLC is independently owned and operated. #6188012.1

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

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The HSA Strategy Retirees Wish They Started Sooner

The Triple-Tax Advantage

HSAs offer one of the strongest tax combinations available:

Grow It Like a Retirement Account

Keep Receipts & Reimburse in Retirement

Healthcare Costs Are Higher Than People Think

Best Practices

Jeremy Heavey

AIF ® , NSSA ® | FINANCIAL ADVISOR

Interested in more?

Two Simple Tools for Smarter Retirement Planning

The Rule of 72: How Fast Will Your Money Double?

The Rule of 55: Accessing Retirement Savings Penalty-Free

Why These Rules Matter Together

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

Financial Advisor

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Retirement, HSA, and Estate Updates at a Glance

2025 vs 2026: Key Retirement, HSA, Estate, and Tax-Savvy Updates

What These Changes Mean for You

Jeremy Heavey

AIF ® , NSSA ® | FINANCIAL ADVISOR

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How Inflation Can Affect Retirement Savings and Ways to Mitigate Its Impact

How Inflation Impacts Retirement Savings

Historical Inflation Trends

Strategies to Mitigate the Impact of Inflation

Next Steps

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

Financial Advisor

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1. Maximize Retirment Contributions

2. Utilize Tax-Loss Harvesting

3. Accelerate Deductions & Defer Income

4. Review Tax Withholding

5. Take Advantage of Tax Credits

6. Leverage the Gift Tax Exclusion

7. Make Qualified Charitable Distributions (QCDs)

Jeremy Heavey

AIF ® , NSSA ® | FINANCIAL ADVISOR

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Jeremy Heavey

AIF ® , NSSA ® | FINANCIAL ADVISOR

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The Pre-Flight Checklist: Double Check Your Beneficiaries

1. Verify Your Current Beneficiaries

2. Confirm Accuracy of Information

3. Align Your Legacy with Your Passion

Jeremy Heavey

AIF ® , NSSA ® | FINANCIAL ADVISOR

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Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors, LLC is independently owned and operated. File #6968916.1

Jeremy Heavey

AIF ® | FINANCIAL ADVISOR

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Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors, LLC is independently owned and operated. File # 6718069.1

Jeremy Heavey

AIF ® | FINANCIAL ADVISOR

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All Things 401k | 5 Helpful Ways to Organize Your 401(k) Fiduciary Files

Why Is Retirement Plan Documentation Important?

Best Practices for Organizing Fiduciary Files

Reduce the Hassle of Compliance Testing

Structure for Success

JULIA SANDERS

AIF®, CPFA® | Retirement Relationship Manager

SCOTT HIGGINS

AIF®, CFP®, CPFA® | Financial Advisor

Securities and Investment Advisory Services offered through M Holdings Securities, Inc., a Registered Broker/Dealer and Investment Advisor, Member FINRA/SIPC. Rose Street Advisors, LLC is independently owned and operated. #6188012.1

This information was developed as a general guide to educate plan sponsors and is not intended as authoritative guidance or tax/legal advice. Each plan has unique requirements, and you should consult your attorney or tax advisor for guidance on your specific situation.

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