The start of a new year often brings renewed motivation to improve our health, productivity, and personal habits. January is also recognized as Financial Wellness Month, a timely reminder to assess where you stand financially and to make thoughtful decisions that support long-term stability rather than short-lived resolutions.

Financial wellness is not about quick fixes or chasing market trends. It is about building a clear understanding of your financial life, reducing unnecessary stress, and aligning your money decisions with your goals and values.

What Is Financial Wellness?

Financial wellness refers to your overall financial health and confidence. It encompasses more than just income or investment performance. At its core, financial wellness means:

●     Having clarity around cash flow and spending

●     Maintaining appropriate savings and emergency reserves

●     Managing debt intentionally

●     Planning for future goals such as retirement, education, or legacy needs

●     Feeling confident in your ability to handle both expected and unexpected expenses

When finances are disorganized or reactive, stress tends to follow. When they are intentional and well-coordinated, money becomes a tool rather than a source of anxiety.

Why January Matters

January is a natural checkpoint. You have a full year ahead of you, fresh financial statements, and—soon—tax documents that reflect the prior year’s activity. It is an ideal time to step back before daily routines take over and ask a few foundational questions:

●     Do I know where my money is going?

●     Am I saving and investing in the right places?

●     Are there upcoming tax or planning decisions I should be proactive about?

●     Has anything changed in my life that should be reflected in my financial plan?

Addressing these questions early in the year gives you more flexibility and better options than trying to react later.

Practical Steps to Take During Financial Wellness Month

You do not need to overhaul your entire financial life in January. Small, focused actions can meaningfully improve your financial well-being.

1. Review Cash Flow and Spending

Start by understanding what is coming in and what is going out. Review bank and credit card statements from the past few months. Look for patterns rather than perfection. Even modest adjustments can free up cash for savings or investing.

2. Revisit Savings Priorities

Confirm that you are contributing appropriately to emergency savings, retirement accounts, and other key goals. If contributions lapsed last year or never quite happened, January is a good time to restart or automate them.

3. Check Investment Alignment

Market performance often dominates attention, but allocation and risk exposure matter more. Ensure your investments still align with your time horizon, tax situation, and tolerance for volatility—especially after market swings.

4. Think Ahead About Taxes

Financial wellness includes tax awareness. January is a good time to identify potential tax-saving opportunities for the year ahead, rather than scrambling at filing time. This may involve adjusting withholding, planning charitable giving, or coordinating investment decisions across accounts.

5. Update Planning Documents

Life changes—marriages, births, retirements, business transitions—can quietly make older plans obsolete. Review beneficiary designations, estate documents, and insurance coverage to ensure they reflect your current circumstances and intentions.

6. Set One or Two Meaningful Goals

Rather than a long list of resolutions, choose one or two financial priorities that matter most to you this year. Progress is more likely when goals are specific, realistic, and connected to a broader purpose.

Financial Wellness Is Ongoing, Not Seasonal

While January provides a useful reset, financial wellness is not a once-a-year exercise. It is an ongoing process of review, adjustment, and intentional decision-making. The habits you reinforce now can reduce stress, improve confidence, and create more control throughout the year.

Financial Wellness Month is ultimately about awareness. By using January to clarify where you stand and where you want to go, you position yourself to make better decisions—not just this month, but all year long.

Sources:

https://www.intuit.com/blog/innovative-thinking/financial-tips/financial-wellness-month/

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

If you get a Form 1099-K from Venmo, PayPal, Square, or another payment platform, you may have questions. You might wonder what the form means, why you received it, and how it affects your taxes.

Receiving a 1099-K is not limited to traditional business owners or freelancers. Individuals who use digital payment apps for a variety of reasons may also receive one. Having a clear understanding of how Form 1099-K fits into your tax reporting responsibilities can help you avoid complications with the IRS or state tax authorities.

What is Form 1099-K?

Form 1099-K is an IRS information return that reports the total amount of payments processed on your behalf through certain payment methods. Its purpose is to help the IRS verify that income received through credit cards and third-party payment networks is being properly reported on tax returns.

This form is issued by payment settlement entities (PSEs), including companies such as PayPal, Venmo, Cash App, Square, and similar platforms. When reporting is required, the payment processor must provide a copy of the form both to you and to the IRS.

The dollar threshold that triggers Form 1099-K reporting is set by federal law and has changed over time. For many years, reporting was required only when payments exceeded $20,000 and involved more than 200 transactions during the year. More recent legislation authorized a lower threshold of $600 with no minimum transaction count, although the IRS has announced a phased rollout of this change. For the most current threshold and timing, consult the IRS’s official Form 1099-K guidance.

What payments are reported on a 1099-K?

Form 1099-K includes payments received for goods or services through credit cards, debit cards, gift cards, and third-party payment networks. This generally covers transactions processed through digital platforms such as Venmo, PayPal, Square, or similar services. Payments made by cash, check, or bank transfer outside of these networks are not included on the form.

Each payment processor calculates reporting thresholds based on the total amount processed through its platform during the calendar year. If your combined transactions meet or exceed the applicable threshold, the processor must issue a 1099-K—even if you do not think of the activity as a business. While not all payments reported on a 1099-K are necessarily taxable, the IRS still expects the amounts to be addressed on your tax return.

How do I report a 1099-K?

If you are self-employed, operate a sole proprietorship, or earn income as an independent contractor or gig worker, the amounts shown on your 1099-K are typically reported on Schedule C as part of your federal income tax return.

Small business owners and landlords who accept payments through third-party processors may receive one or multiple 1099-K forms reflecting gross receipts for the year. Because reporting thresholds have changed, it is possible to receive a 1099-K now even if you did not receive one in prior years.

If you already track your income using accounting software or spreadsheets, the amounts on your 1099-K may duplicate income you have already recorded. In addition, you might also receive Forms 1099-NEC or 1099-MISC for similar work. When payments are made through third-party processors, the same income can appear on multiple forms. Reviewing your records carefully—or working with a qualified tax or legal professional—can help prevent double reporting.

It is also important to remember that Form 1099-K reports gross payments, not profit. Business expenses, fees, refunds, and returns are not deducted on the form and must be accounted for separately when calculating taxable income.

What if I’m not a business owner but received a 1099-K?

Form 1099-K is not limited to businesses. If you receive one, do not ignore it. The payment processor has already sent a copy to the IRS using your Social Security number or taxpayer identification number, allowing the IRS to match the reported income to your tax return.

Failing to reconcile the form with your return can result in penalties, interest, or increased audit risk. In some cases, 1099-K forms may contain mistakes, such as incorrect amounts, duplicate reporting, or transactions that were not taxable.

If you believe the form is inaccurate or does not represent taxable income, you can request a correction from the payment processor or seek guidance from a legal professional on how to properly address it.

Bottom Line

No matter if you use payment apps for business, side income, or personal use, it is important to review the form carefully. Make sure to check it against your records. Reporting the amounts correctly can help you avoid mistakes and unwanted IRS attention. When questions arise or the numbers do not appear to align with your actual taxable income, seeking professional guidance from a financial advisor or tax professional can provide clarity and help ensure your tax return is accurate and complete.

Sources:

https://www.rocketlawyer.com/family-and-personal/personal-finance/personal-taxes/legal-guide/what-does-it-mean-if-i-get-a-1099-k-tax-form?utm_content=Paragraph3&utm_source=triggered_email&utm_medium=email&utm_campaign=OM_NL_December2025_All

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

Many investors devote significant time to researching stocks, bonds, and funds with strong return potential. They follow market commentary, read financial news, and seek input from friends or colleagues. Yet an important contributor to long-term results is often underappreciated: how much of those returns are lost to taxes.

Tax-aware investing does not require complex maneuvers, but it does benefit from intentional planning. While market performance, inflation, and interest rates tend to dominate headlines, thoughtful tax management can meaningfully enhance what you keep after taxes. Federal income taxes can be influenced through several coordinated decisions, including what investments you own, when you buy or sell them, which accounts you use, how you handle losses, and whether strategies such as charitable giving are incorporated. When aligned properly, these elements can help reduce, delay, or better control taxes over time.

Importantly, taxes should not be the primary driver of investment decisions. Your goals, time horizon, financial circumstances, and risk tolerance should always come first. That said, layering tax awareness into portfolio management can improve overall efficiency.

Managing taxes along the way

The timing of transactions and the types of investments you hold can affect your tax bill. While tax considerations should not override sound investment judgment, they can be factored into ongoing portfolio decisions.

Capital losses. Selling an investment at a loss can help offset realized gains elsewhere in your portfolio. If losses exceed gains, up to $3,000 may be applied against ordinary income in a given year, with remaining losses carried forward to future years.

Capital gains. Assets held for more than one year generally receive more favorable long-term capital gains tax treatment than short-term holdings. Being mindful of holding periods can help avoid higher tax rates, though investment risk and return expectations should always remain the primary consideration. Tax rules may also vary for shares acquired through employer equity compensation plans.

Fund distributions. Mutual funds typically distribute income and capital gains annually. Investors who own shares in a taxable account on the distribution record date may owe taxes regardless of how long they have held the fund. Understanding distribution timing can help avoid unexpected tax liabilities.

Tax-favored investments. Different investments receive different tax treatment. Municipal bonds are often exempt from federal income tax and sometimes state tax, while interest from bonds and income from REITs is usually taxed as ordinary income.

This is where asset location matters—placing certain investments in taxable accounts and others in tax-advantaged accounts can improve after-tax results. Qualified dividends, which are generally taxed at long-term capital gains rates, may also factor into investment selection.

Fund and ETF structure. Investment vehicles vary in tax efficiency. Passive strategies often generate fewer taxable events than active ones, though there can be wide variation even within each category. Reviewing a fund’s historical tax profile can be useful before investing.

Employer stock plans. Company stock plans often come with unique tax rules and planning considerations, particularly around diversification, timing of sales, and filing requirements.

Deferring taxes for future growth

One of the most powerful tax benefits available is tax deferral. Retirement accounts such as 401(k)s, 403(b)s, and IRAs allow investments to grow without annual taxation. Other vehicles, including health savings accounts (HSAs) and certain annuities, may offer additional opportunities for tax-deferred growth. Keeping more money invested, rather than paying taxes along the way, can enhance compounding over time.

Account selection also matters. Locating investments that generate higher taxable income inside tax-advantaged accounts—and holding more tax-efficient investments in taxable accounts—can improve long-term outcomes.

Stock options present another planning opportunity. Exercise timing can affect taxes, but concentrating too heavily in a single company introduces risk, so tax considerations should be weighed alongside diversification and overall portfolio exposure.

Reducing taxes strategically

Beyond managing and deferring taxes, some strategies aim to reduce them outright.

Charitable giving. The tax code provides incentives for philanthropy, particularly for those who itemize deductions. Donating appreciated assets—such as long-term stocks, funds, or certain non-public assets—may allow you to claim a deduction for fair market value while avoiding capital gains taxes.

Donor-advised funds can also be used to accelerate deductions in high-income years while supporting charities over time. Beginning in 2026, non-itemizers will again be eligible to deduct a limited amount of cash charitable contributions.

Roth conversions. Moving assets from a traditional account to a Roth account requires paying taxes upfront, but future qualified withdrawals may be tax-free. Evaluating whether a conversion makes sense depends on income, tax rates, estate planning goals, and timing, and should be reviewed carefully with professional guidance.

Education and health savings. Education savings plans, such as 529 accounts, offer tax-deferred growth and tax-free withdrawals for qualified education expenses. Health savings accounts provide a rare combination of potential tax-deductible contributions, tax-deferred growth, and tax-free withdrawals for eligible medical costs.

The bottom line

Taxes are only one component of a sound financial strategy, but they can have a lasting impact on results. By thoughtfully coordinating how you invest, where assets are held, and when income is recognized, you may be able to improve after-tax outcomes and keep more of your wealth working for you over time.

Sources:

https://www.fidelity.com/viewpoints/investing-ideas/tax-strategy

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

You’ve worked hard to build your business and set aside money in a retirement account. The next step is making sure those savings are invested with purpose. Before selecting investments, it helps to step back and establish a clear plan. A thoughtful strategy can provide direction, reduce uncertainty, and keep your long-term goals in focus.

Business owners often face a different reality than employees in traditional corporate roles. Retirement contributions, health coverage, and benefits that are typically automated elsewhere require deliberate decisions when you work for yourself. That makes planning not just helpful, but essential.

Step 1: Begin with a Comprehensive Plan

A solid financial plan acts as a blueprint for both your business and your personal life. It can help coordinate cash flow, insurance needs, tax planning, and retirement goals into a cohesive strategy.

Many entrepreneurs focus heavily on reinvesting in their companies and delay retirement planning altogether. While understandable, that approach can create challenges later. There are numerous retirement plan options available to business owners—such as SEP IRAs, SIMPLE IRAs, Solo 401(k)s, and defined benefit plans—and navigating the differences can feel overwhelming. Without guidance, it’s easy to postpone decisions that deserve attention now.

Planning should also extend beyond the life of the business. Whether you intend to sell, transition ownership, or gradually wind things down, an exit strategy matters. Relying solely on the hope that everything will work out can put the value you’ve built at risk.

Equally important is understanding your personal cash flow outside the business. Maintaining an emergency fund, setting a household budget, and knowing what it actually costs to live can make the shift into retirement far smoother. For some owners, the transition is difficult not because of a lack of assets, but because they’ve never had to live on a defined income before. Planning ahead helps prevent that shock.

Step 2: Understand Your Retirement Account

Before investing, it’s important to know the rules of the account you’re using. Contribution limits, tax treatment, and investment flexibility vary by account type, even though the core investment principles remain the same.

Common options for business owners include:

●     SEP IRA: Often used by self-employed individuals and small businesses, these plans allow relatively high employer-only contributions that are typically tax-deductible. Investments grow tax-deferred until withdrawal.

●     SIMPLE IRA: Designed for smaller employers, these plans require employer contributions and allow employees to contribute as well. Contributions are made on a pre-tax basis, with tax-deferred growth.

●     Solo 401(k): Available to self-employed individuals with no employees other than a spouse, this option offers high contribution limits and added flexibility. Many plans allow both traditional (pre-tax) and Roth (after-tax) contributions, giving you control over when taxes are paid.

Knowing whether your account supports pre-tax contributions, Roth contributions, or both can help you align today’s decisions with your expected tax situation in retirement.

Step 3: Design Your Investment Strategy

Think of an investment strategy like building a balanced diet—you don’t need complexity, just the right mix.

Asset Allocation

Asset allocation refers to how your money is divided among stocks, bonds, and cash. The right mix depends on several factors:

●     Time horizon: The longer you have until retirement, the more room you may have for growth-oriented investments.

●     Risk tolerance: Some investors are comfortable with market swings; others prefer stability.

●     Overall financial picture: Other income sources, savings, and how central this account is to your retirement all matter.

While growth tends to be more important earlier on, it doesn’t stop mattering once retirement approaches—especially if retirement may last decades.

Once your overall mix is established, the next step is spreading risk within each category.

Diversification

Diversification means avoiding over-reliance on any single investment. By spreading money across asset classes, industries, company sizes, and geographic regions, you reduce the impact of any one area underperforming.

The goal isn’t to eliminate losses, but to smooth the ride. A diversified portfolio can make it easier to stay disciplined when markets are volatile. That said, diversification and asset allocation cannot guarantee profits or prevent losses.

Rebalancing

Over time, market movement can push your portfolio away from its original target mix. Rebalancing is the process of realigning your investments by trimming areas that have grown too large and reinforcing those that have lagged.

This isn’t about predicting markets—it’s about maintaining discipline. Reviewing your portfolio once or twice a year is often sufficient, and some accounts allow automatic rebalancing to simplify the process.

Step 4: Choose Your Investments

This is where many investors hesitate, but there are several straightforward paths forward.

●     Individual stocks and bonds: Building a portfolio this way requires ongoing research and monitoring. A written investment policy can help maintain consistency, but this approach may be time-intensive for busy business owners.

●     Mutual funds and ETFs: These investments bundle many securities into a single fund, offering built-in diversification.

●     Actively managed funds aim to outperform the market.

●     Passively managed funds track market indexes.

●     Target-date funds: Designed around a projected retirement year, these funds automatically shift from growth-focused investments to more conservative ones over time.

Many investors use a combination of these options. Fees, expenses, and how investments work together should all be considered. Some business owners also choose professional management, either through a financial advisor or a managed account, to ensure alignment with their goals and risk tolerance.

Step 5: Put the Plan into Action

Once you’ve selected your strategy, implementation is the final step. That typically involves choosing investments, deciding contribution amounts, and setting up automatic funding when possible.

Automation—through payroll deferrals or scheduled bank transfers—can be especially powerful. Consistent contributions matter just as much as investment selection, and automation helps keep saving on track regardless of market conditions.

Perfection isn’t required at the start. Strategies can—and should—evolve over time.

Step 6: Monitor Progress Without Overreacting

After your plan is in place, the focus shifts to maintenance. Regular check-ins can help you stay aligned with your goals, especially when your business or personal situation changes.

Review your financial plan periodically, rebalance when necessary, and confirm that your investment mix still reflects your objectives. Daily market fluctuations don’t require action—and tuning out short-term noise can often lead to better long-term decisions.

When questions arise or circumstances change, professional guidance can provide clarity and help ensure your strategy continues to support both your business success and your future retirement.

Sources:

https://www.fidelity.com/learning-center/personal-finance/small-business-retirement-investing

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

Not everyone has access to a workplace retirement plan. If you are self-employed or run a business with no employees, that does not mean retirement savings are out of reach. One of the most flexible and generous options available is the solo 401(k), sometimes called an individual 401(k), self-employed 401(k), or one-participant 401(k)—the term favored by the IRS.

Designed for business owners with no employees other than a spouse who earns income from the business, the solo 401(k) is especially attractive for freelancers, consultants, gig workers, and owners of sole proprietorships, LLCs, S corporations, C corporations, and partnerships without staff. Its standout feature is the ability to contribute significantly more than many other retirement plans allow.

How Solo 401(k) Contributions Work

A solo 401(k) is unique because you contribute in two distinct roles: as the employee and as the employer. Each role comes with its own contribution limits, which together create a high overall savings potential.

Solo 401(k) Contribution Limits for 2026

Contribution limits rise modestly in 2026. Total contributions may reach up to $72,000 for individuals under age 50.

Catch-up contributions increase as follows:

●     Ages 50–59 and 64 or older: up to $8,000

●     Ages 60–63 (if the plan allows): up to $11,250

Employee Contributions (2026)

The employee deferral limit increases to $24,500. Including catch-up contributions:

●     Ages 50–59 or 64+: up to $32,500

●     Ages 60–63 (if permitted): up to $35,750

Employer Contributions (2026)

Employer profit-sharing contributions remain capped at 25% of compensation. The IRS compensation limit used to calculate contributions rises to $360,000 for 2026.

Important Coordination Rules

If you also participate in another employer-sponsored 401(k), your employee deferral limit applies across all plans combined—not separately for each plan. In that situation, you may still be able to make employer contributions to your solo 401(k), but employee deferrals may be limited or unavailable.

Contribution Deadlines and Tax Treatment

For self-employed individuals and owner-only businesses, both employee deferrals and employer profit-sharing contributions are generally due by the business’s tax filing deadline, including extensions. The first year a plan is established may have different timing rules, and salary deferral elections typically must be documented by year-end.

Tax treatment depends on your business structure:

●     Unincorporated business owners generally deduct contributions on their personal tax return

●     Incorporated businesses may deduct contributions as a business expense

Because rules vary, consulting a qualified tax professional is strongly recommended.

Roth Solo 401(k) Contributions

If your plan permits Roth contributions, the contribution limits are the same as for pre-tax deferrals. You may split contributions between Roth and traditional accounts, provided the combined total does not exceed annual limits.

Qualified Roth withdrawals are tax-free if you meet age or eligibility requirements and the five-year holding period has been satisfied. Recent legislation also allows certain employer contributions to be treated as Roth, though availability depends on plan design.

Beginning in 2026, individuals age 50 or older with prior-year W-2 income above a specified threshold will be required to make catch-up contributions on a Roth basis.

Correcting Excess Contributions

If you accidentally contribute more than allowed, the IRS requires that the excess deferral be removed. Typically, this correction must be made by April 15 of the year following the contribution year.

Correcting the error on time generally limits taxes to any earnings generated by the excess amount. Missing the deadline can result in additional taxation and potential early withdrawal penalties, making prompt correction essential.

Opening and Maintaining a Solo 401(k)

Solo 401(k) plans are offered by many financial institutions. When selecting a provider, consider:

●     Availability of traditional and Roth contributions

●     Investment choices

●     Fees and administrative support

●     Loan and rollover options

●     Ease of funding and electronic deposits

Once established, the plan administrator—often the business owner—is responsible for ensuring compliance with IRS rules and contribution limits.

Additional Considerations

If your solo 401(k) balance exceeds $250,000 at the end of the plan year, you are generally required to file IRS Form 5500-EZ annually. A final filing is also required when the plan is terminated.

Finally, while solo 401(k)s may offer some creditor protection, they typically do not receive the same level of ERISA protection as large employer-sponsored plans.

Bottom Line

For self-employed individuals with no employees, the solo 401(k) can be one of the most powerful retirement savings tools available. With high contribution limits, flexible tax treatment, and long-term growth potential, it offers an opportunity to build retirement security even without a traditional workplace plan. Consulting with your financial advisor is always a good idea before jumping into a Solo 401k.

Sources: https://www.fidelity.com/learning-center/smart-money/solo-401k-contribution-limits

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

A 401(k) is one of the most effective tools available for building retirement savings, but contributions are not unlimited. Each year, the IRS establishes specific caps on how much employees and employers can contribute. Staying within these limits is essential to avoid tax complications and ensure your retirement strategy stays on track.

401(k) Contribution Limits for 2026

Contribution limits increase in 2026. The employee deferral limit rises to $24,500, while the combined employee and employer contribution cap increases to $72,000.

Catch-up contributions for 2026 include:

●     $8,000 for those age 50 or older

●     $11,250 for those ages 60–63, if the plan allows this enhanced catch-up

That means the maximum employee contribution becomes:

●     $32,500 for participants age 50 or older

●     $35,750 for participants ages 60–63, if eligible

As with 2025, some plans allow additional after-tax contributions up to the overall annual limit, provided the combined total does not exceed compensation.

Roth 401(k) Contribution Rules

Roth 401(k) plans follow the same contribution limits as traditional 401(k)s. If you contribute to both Roth and pre-tax accounts, the combined total must stay within the annual employee deferral limit.

For example, in 2026, someone under age 50 cannot contribute more than $24,500 total across all Roth and traditional 401(k) accounts, regardless of how many plans they participate in.

Contribution Limits When You Have Multiple 401(k) Plans

If you participate in more than one 401(k) through different employers, the IRS still applies a single employee contribution limit across all plans combined.

For instance, in 2026, you could split the $24,500 maximum between two different plans, but you may not exceed the limit in total. Employer contributions are tracked separately for each plan.

These limits do not affect IRA contributions—you may still contribute the maximum allowable amount to an IRA in addition to your 401(k) savings.

After-Tax 401(k) Contributions

Some workplace plans allow after-tax contributions once you have reached the pre-tax and Roth limits. These contributions grow tax-deferred while in the plan, and you pay taxes only on the earnings when funds are withdrawn.

If your plan permits it, you may contribute after-tax dollars up to the total employee-plus-employer limit. For example, in 2026, an employee under 50 contributing $24,500, with an employer contribution of $20,000, could potentially add another $27,500 in after-tax contributions to reach the $72,000 cap.

Not all plans offer this feature, so it’s important to review your plan documents or speak with your administrator. If after-tax contributions are not an option, IRAs or other savings vehicles may help bridge the gap.

What Happens If You Contribute Too Much?

Exceeding 401(k) contribution limits can result in double taxation. Excess deferrals are taxed in the year they are made and again when withdrawn if not corrected in time. These amounts are reported on IRS Form 1099-R.

Most plans are designed to prevent overcontributions, but errors can occur—especially if you change jobs or contribute to multiple plans. If you discover an excess contribution, you generally must request a corrective distribution by April 15 of the following year to avoid additional penalties.

How Much Should You Save in a 401(k)?

Determining how much to contribute can feel daunting, but a common guideline is to aim for 15% of your annual income, including employer contributions. This target can include savings in other retirement accounts, such as IRAs.

While this may seem ambitious, especially early in your career, consistency matters more than perfection. Starting small and increasing contributions gradually can make the goal more manageable.

Strategies to Maximize Your 401(k)

To make the most of your retirement plan:

Start early.

The sooner you begin saving, the more time your investments have to benefit from compound growth.

Capture your full employer match.

Employer matching contributions are effectively free money. Contributing enough to receive the full match should be a top priority.

Increase contributions over time.

Gradually raising your contribution rate—such as by 1% annually or when you receive a raise—can significantly boost long-term savings without straining your budget.

Keep track of old plans.

Many people forget about 401(k)s from previous employers. Reviewing past jobs and consolidating accounts where appropriate can help you manage your retirement savings more effectively.

Bottom Line

Understanding annual 401(k) contribution limits—and how to work within them—can help you avoid costly mistakes while maximizing your retirement savings. With thoughtful planning and steady contributions, your 401(k) can remain a cornerstone of long-term financial security.

Sources:

https://www.fidelity.com/learning-center/smart-money/401k-contribution-limits

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

Income-based student loan repayment is undergoing a significant reset following the tax legislation signed on July 4, 2025. A centerpiece of this change is the creation of the Repayment Assistance Plan (RAP), a new income-driven repayment option scheduled to launch by July 1, 2026. For borrowers currently using income-driven plans—or planning to in the future—these changes could materially affect monthly payments and long-term repayment timelines.

What is the Repayment Assistance Plan (RAP)?

The Repayment Assistance Plan is a new federal income-driven repayment (IDR) option for student loan borrowers. Like earlier IDR plans, RAP ties required monthly payments to a borrower’s income and family size rather than the size of the loan alone. Once implemented, RAP will replace several existing programs, including the SAVE Plan, Income-Contingent Repayment (ICR), and Pay As You Earn (PAYE).

How RAP is structured

Under RAP, borrowers generally pay a set percentage of their income each month toward their student loans. One notable feature mirrors the SAVE plan: any unpaid interest is eliminated each month, provided the borrower makes their required payment. As a result, balances do not grow simply because payments are too low to cover interest.

For example, if a borrower accrues $200 in monthly interest but qualifies for the minimum RAP payment of $10, that $10 is applied to interest and the remaining $190 is forgiven—not capitalized. This prevents negative amortization, a common issue under older repayment models.

Additionally, if a borrower’s required payment would reduce the loan balance by less than $50 per month, the Department of Education will contribute enough to reach that $50 reduction threshold. This feature is designed to ensure progress toward repayment even at low payment levels.

RAP allows up to 30 years for repayment before forgiveness, regardless of whether the debt stems from undergraduate or graduate studies. This is longer than prior IDR plans, which typically capped forgiveness at 20 years for undergraduate loans and 25 years for graduate loans.

How monthly payments are calculated

RAP payments are based on a borrower’s adjusted gross income (AGI), which reflects total income after certain deductions. These deductions may include retirement contributions, health savings account contributions, student loan interest, and health insurance premiums for self-employed individuals.

Household size also matters. Each dependent claimed on a tax return reduces the monthly payment by $50. For instance, a borrower with an AGI of $101,000 and no dependents would owe approximately 10% of income annually—about $842 per month. With two dependents, that payment would drop to roughly $742 per month.

Regardless of income or family size, RAP enforces a minimum payment of $10 per month.

RAP income tiers

Annual payment requirements scale with income as follows:

●     $10,000 or less: $120 annually

●     $10,001–$20,000: 1% of AGI

●     $20,001–$30,000: 2%

●     $30,001–$40,000: 3%

●     $40,001–$50,000: 4%

●     $50,001–$60,000: 5%

●     $60,001–$70,000: 6%

●     $70,001–$80,000: 7%

●     $80,001–$90,000: 8%

●     $90,001–$100,000: 9%

●     Over $100,000: 10%

Who qualifies for RAP?

Borrowers with federal Direct Loans will be eligible for RAP once it becomes available, with one major exception: Parent PLUS loans do not qualify. Some borrowers holding non-Direct federal loans may be able to consolidate into a Direct Loan to gain access.

RAP versus the Standard Repayment Plan

Beginning July 1, 2026, new federal student loan borrowers will have only two repayment choices: the Standard Repayment Plan or RAP.

The Standard Repayment Plan uses fixed monthly payments over a predetermined timeline, similar to a traditional installment loan. Repayment length depends on the total amount borrowed:

●     Less than $25,000: 10 years

●     $25,000–$49,999: 15 years

●     $50,000–$99,999: 20 years

●     $100,000 or more: 25 years

Advantages of RAP

RAP offers several potential benefits compared to standard repayment:

●     Payments adjust to income, helping align obligations with cash flow

●     Loan balances do not grow due to unpaid interest

●     Borrowers receive payment reductions for dependents

●     Minimum payments ensure affordability while still reducing principal

Potential drawbacks to consider

There are also trade-offs:

●     Repayment may extend up to 30 years, increasing the duration of payments

●     Parent PLUS loans are excluded from RAP eligibility

●     Borrowers accustomed to $0 minimum payments under prior IDR plans will face a $10 monthly floor

Frequently asked questions

When does RAP begin?

Current law schedules RAP to launch on July 1, 2026.

Which loans qualify?

Only federal Direct Loans are eligible. Parent PLUS loans are excluded.

What is the lowest possible payment?

The minimum monthly payment under RAP is $10.

When does loan forgiveness occur?

Loans are forgiven after 30 years of qualifying payments. Public Service Loan Forgiveness (PSLF) remains unchanged, allowing eligible borrowers to receive forgiveness after 120 qualifying payments.

Key dates to remember

●     July 1, 2026: RAP becomes available

●     Loans issued after this date will no longer qualify for SAVE, PAYE, or ICR

●     New borrowers will choose between RAP and the Standard Repayment Plan

Bottom Line

The Repayment Assistance Plan represents a meaningful shift in how federal student loans will be repaid going forward, placing greater emphasis on affordability, balance stability, and long-term progress toward forgiveness. While RAP introduces valuable protections against interest growth and adjusts payments based on income and family size, it also extends repayment timelines and limits options for certain borrowers. As the July 1, 2026 rollout approaches, understanding how RAP fits into your broader financial plan will be essential to making informed borrowing and repayment decisions.

Sources:

https://www.fidelity.com/learning-center/personal-finance/repayment-assistance-plan

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

You’ve probably seen one of those shows where a professional organizer helps families sort through years of accumulated clutter. Watching closets emptied and unnecessary items finally let go can be surprisingly motivating.

Then the TV goes off, and you walk into your home office for one last email check. The desk is covered with unopened mail.

File drawers are crammed with old statements and random paperwork. Nothing is labeled, nothing is in order. That’s when it clicks: your financial paperwork may need the same kind of overhaul as an overstuffed garage or basement.

Here’s a practical way to begin.

1. Start by Letting Go

Many people don’t view stacks of financial documents as clutter. After all, it feels “important,” so it must be worth saving. In reality, much of it serves no purpose once it’s been reviewed or acted on. Keeping too much can cost you time searching through piles—and money if a forgotten bill results in late fees.

Begin by discarding items that have already done their job. ATM receipts can go once you’ve verified the transaction. Monthly statements and sales receipts can be tossed after payments are confirmed or return windows have closed.

If a document isn’t needed for taxes, insurance claims, or warranty support, it likely doesn’t belong in your files. For tax-related records, plan to retain them for at least three years.

2. Know What Deserves a Place

Some documents are worth keeping—and knowing which ones can save you a lot of guesswork later.

●     Medical bills: Keep until insurance claims are settled. Retain longer only if you plan to deduct the expense on your tax return.

●     Utility bills: Once paid, they can usually be discarded. If you’re preparing to sell your home, keep the most recent year.

●     Loan and insurance documents: Store these permanently, along with critical personal records such as birth certificates, passports, and Social Security cards, in a secure location.

●     Tax returns and backup documents: Keep at least the last three years; the IRS can review returns further back in certain cases.

●     Pay stubs: Hold onto them until you receive your annual W-2.

●     Home improvement records: Keep these until you sell the property, as they may help reduce taxable gains.

●     Bank statements: Retain for about one year.

●     Investment records: Keep capital gains documentation for a minimum of three years.

3. Shred, Then Recycle

A good shredder is essential. Any document that contains personal or financial information should be destroyed securely before disposal. Identity theft is a real risk, and shredding eliminates it.

For what remains, set up a filing system that’s simple enough to maintain. Clearly labeled folders—paper or digital—make it easier to stay organized over time. If the system is complicated, it won’t last.

4. Embrace Paperless Options

Switching to electronic statements and digital pay stubs can dramatically reduce incoming clutter. Most financial institutions and employers offer paperless delivery, and opting in is often just a few clicks.

That said, digital clutter is still clutter. Organize your electronic files thoughtfully, create clear folders, and periodically clean out old emails and documents you no longer need.

5. Don’t Put It Off

Make organization a habit rather than a one-time event. Set aside time, turn on some music, and tackle the pile. The longer you delay, the more paperwork accumulates.

Your financial advisor can also be a valuable resource in this process. They can help you decide what to keep, what to discard, and how to build a system that supports your overall financial plan—so you can move forward with less paper and more peace of mind.

Sources:

https://www.hartfordfunds.com/practice-management/client-conversations/financial-planning/tidying-up-financial-clutter.html?mkt_tok=ODYxLVJXUy02OTkAAAGfE8qhYFutYH5eUgFkuFj5TMXO-8An9kKIuuylzZ0Bo22rmt9qJA-9vclor59bs0jMjPMIQEGFnIeotUKN6ig5UV6JZxxXTsI0Xbgtc-DV4hjHaw

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

Each year, millions of Americans move retirement savings from employer plans like 401(k)s into IRAs. What many do not realize is that, after the rollover is complete, a portion of that money may end up parked in cash—and stay there far longer than intended. When that happens, years of potential growth can be lost as inflation steadily erodes purchasing power. Completing a rollover is not the end of the process; it is the beginning of a new phase of retirement decision-making.

Recent studies highlight how common this issue has become. Research conducted in 2023 and 2024 found that a significant number of rollover IRA investors left their assets uninvested for extended periods, often unintentionally. Nearly seven in ten investors who remained in cash reported that they did not understand how their IRA was invested. In many cases, the problem was not risk aversion, but simple confusion—confusion that can quietly undermine long-term compounding.

What actually happens during a rollover

One of the most misunderstood aspects of a 401(k)-to-IRA rollover is what happens to existing investments. In many cases, the holdings inside a workplace plan are liquidated during the transfer. The proceeds arrive in the IRA as cash rather than as invested assets. Unless the account owner selects new investments—or enrolls in a managed solution—that cash generally remains idle, aside from earning modest interest.

This surprises many people. There is an assumption that the transition will be seamless and automatic, but IRAs do not function like employer-sponsored plans. There is no default investment option, and no automatic reallocation. The next step requires action.

Many investors believe they remain invested after a rollover when, in reality, they are starting from scratch. Employer plans can default participants into investments under federal rules; IRAs cannot. During job transitions, investment decisions often take a back seat to more immediate priorities, making it easy to delay the follow-up.

For those who liked their former 401(k) allocation, documenting it before the rollover—by printing or saving a screenshot—can make it easier to recreate a similar mix in an IRA, even if the exact funds are not available.

Where uninvested money typically sits

Within an IRA, uninvested funds are held in what is known as a “core position.” This functions as a temporary holding account for cash and transactions and is often a money market fund or an FDIC-insured sweep option. While this cash position serves an important purpose, it is not designed to be a long-term strategy. Moving from cash into an investment approach aligned with your goals is the critical next step.

Why leaving money in cash can be costly

A rollover IRA may represent decades of work and saving, concentrated into a single transfer. Leaving those assets uninvested introduces meaningful risks:

●     Lost growth potential: Over long periods, diversified portfolios have historically outperformed cash, meaning idle funds miss market participation.

●     Inflation risk: Even when cash yields appear attractive, inflation can reduce real purchasing power over time.

●     Planning drift: Without an intentional investment strategy, retirement goals can gradually slip out of reach.

Planning before investing

A rollover creates a natural opportunity to step back and reassess your overall retirement plan—especially if it has been years since you last reviewed it. Goals evolve, markets change, and assumptions made earlier in your career may no longer apply.

Davin notes that some of the most meaningful rollover conversations begin with planning rather than fund selection. In one case, a long-tenured employee discovered she was closer to retirement than she expected once her accounts were aligned with a clear strategy. By the time her rollover was complete, she already had a plan for emergency savings, income, and long-term growth.

A solid plan can clarify where you stand, what adjustments are available, and how each decision affects your outcome. It helps:

●     Define your time horizon and income needs

●     Align investment risk with real-world goals

●     Coordinate multiple accounts into one cohesive strategy

●     Turn intentions into actionable steps

Once you understand your position relative to your goals, the path forward becomes clearer. Personal finance blends data with behavior—the math may show what is required, but success depends on choosing an approach you can realistically maintain.

Completing the rollover process

After your funds arrive, a few final steps can help ensure nothing is left unfinished:

●     Confirm the rollover is complete and funds are available to invest

●     Decide whether to manage investments yourself or delegate to a professional

●     Select an allocation that balances growth with your comfort during market volatility

●     Automate contributions and investing when possible

●     Schedule periodic reviews to adjust for life changes and market conditions

Practical rollover considerations

Whenever possible, a direct rollover—where funds move straight from the plan administrator to the IRA provider—can reduce paperwork, avoid withholding, and limit risk. If you receive funds personally, the IRS 60-day rule applies, and missing that deadline can trigger taxes and penalties.

An IRA’s flexibility can be a benefit, but it can also feel overwhelming. You may not need to reinvent your entire strategy. If a target-date or balanced approach worked well before, similar options may still be appropriate.

Cash feels safe—but carries its own risks

Holding cash can provide comfort, but as a long-term retirement strategy it can fall short. Without growth, portfolios may struggle to keep pace with inflation or support future income needs. While outcomes are never guaranteed, investing provides the opportunity for long-term growth that cash alone cannot offer.

For those hesitant to invest all at once, maintaining a reasonable cash reserve for emergencies while investing retirement assets according to plan can offer a balanced approach.

When professional help makes sense

If selecting and monitoring investments feels daunting—or simply not worth your time—working with a financial advisor can add value. An advisor can help integrate accounts, translate goals into a sustainable plan, and build an investment mix designed to hold up through market cycles.

Sources:

https://www.fidelity.com/learning-center/personal-finance/investing-your-rollover-ira

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

Many people like the idea of contributing to a Roth IRA because qualified withdrawals in retirement are generally tax-free. However, higher earners often discover they are not allowed to contribute directly due to IRS income limits.

There is a lawful workaround known as a backdoor Roth IRA. While it is not a separate type of account, it is a strategy that allows eligible individuals to move money into a Roth IRA even when their income exceeds the normal limits.

At a high level, the backdoor strategy involves two steps:

1.    Making a contribution to a traditional IRA

2.    Converting that contribution to a Roth IRA

To use this approach effectively—and avoid unexpected taxes—there are several important rules to understand.

IRA Contribution Limits Still Apply

The backdoor strategy does not allow you to exceed normal IRA contribution limits. Each year, your total IRA contributions (traditional and Roth combined) are capped at the lesser of:

●     100% of your earned income for the year, or

●     The annual IRS limit

For both 2024 and 2025, the limits are:

●     $7,000 for individuals under age 50

●     $8,000 for individuals age 50 or older (includes a $1,000 catch-up contribution)

Why High Earners Cannot Contribute Directly to a Roth IRA

Unlike traditional IRAs, Roth IRAs have income restrictions based on your modified adjusted gross income (MAGI) and tax-filing status.

2025 Roth IRA Income Limits (MAGI)

●     Single / Head of Household

●     Up to $150,000: full contribution

●     $150,000–$165,000: partial contribution

●     $165,000 or more: no contribution

●     Married Filing Jointly / Qualifying Widow(er)

●     Up to $236,000: full contribution

●     $236,000–$246,000: partial contribution

●     $246,000 or more: no contribution

●     Married Filing Separately

●     Less than $10,000: partial contribution

●     $10,000 or more: no contribution

Tip: If your income falls in the “partial” range, you may still contribute some amount directly to a Roth IRA and place the remainder of your annual limit into a traditional IRA.

2026 Roth IRA Income Limits (MAGI)

●     Single/Head of Household

●     Up to $153,000: full contribution

●     $153,000-$168,000: partial contribution

●     $168,000 or more: no contribution

●     Married Filing Jointly/Qualifying Widow(er)

●     Up to $242,000: full contribution

●     $242,000-$252,000: partial contribution

●     $252,000 or more: no contribution

●     Married Filing Separately

●     Less than $10,000: partial contribution

●     $10,000 or more: no contribution

Traditional IRA Contributions: Deductible vs. Nondeductible

Traditional IRAs do not have income limits for making a contribution, but income and workplace retirement plan coverage can limit whether that contribution is tax-deductible.

If you or your spouse participate in an employer retirement plan, the deductibility of your traditional IRA contribution may be reduced or eliminated as your income rises.

Because Roth IRAs are funded with after-tax dollars, many people intentionally treat the traditional IRA contribution used for a backdoor strategy as nondeductible, even if they technically qualify for a deduction.

That said, this decision should be made carefully, particularly if you already have money in traditional IRAs.

How the Backdoor Roth IRA Works in Practice

A backdoor Roth IRA generally follows this sequence:

Make a contribution to a traditional IRA

●     This must be completed by the tax-filing deadline (typically April 15 of the following year).

●     Extensions do not extend the IRA contribution deadline.

Convert the contribution to a Roth IRA

●     There is no formal deadline for the conversion.

●     Many people convert soon after contributing to limit taxable investment growth in the traditional IRA.

Once the funds are in the Roth IRA, future qualified withdrawals may be tax-free.

The Pro-Rata Rule: A Common Surprise

If you already have pre-tax money in traditional IRAs, SEP IRAs, or SIMPLE IRAs, the IRS requires that any Roth conversion include a proportional mix of pre-tax and after-tax dollars. This is known as the pro-rata rule.

Example

●     You have $95,000 in traditional IRAs, all pre-tax

●     You make a $5,000 nondeductible contribution

●     Your total IRA balance becomes $100,000

●     You convert $5,000 to a Roth IRA

Because only 5% of your IRA balance is after-tax, only 5% of the conversion is tax-free. The remainder is taxable—even though the contribution itself was nondeductible.

This rule is often the biggest obstacle to an efficient backdoor Roth strategy.

Using an Employer Plan to Reduce Taxes

Some individuals can avoid the pro-rata issue by rolling pre-tax IRA balances into an employer retirement plan, such as a 401(k), if the plan allows incoming rollovers.

Continuing the example above, if the $95,000 pre-tax balance is rolled into a 401(k), only the $5,000 after-tax contribution remains in the IRA—allowing for a fully tax-free Roth conversion.

Important reminders:

●     Employer plans generally cannot accept after-tax IRA dollars

●     Required minimum distributions must be taken first, if applicable

●     No new rollovers from an employer plan into an IRA should occur in the same year

Always confirm plan rules before pursuing this approach.

Proper Tax Reporting Is Critical

Backdoor Roth IRA contributions must be reported correctly on your tax return. IRS Form 8606 is used to track nondeductible IRA contributions and Roth conversions, ensuring you are not taxed twice on the same dollars.

Failure to file Form 8606 when required can result in:

●     Double taxation

●     IRS penalties for incorrect or missing reporting

Because custodial tax forms are issued on different timelines, your tax preparer may need account statements—not just Forms 1099-R and 5498—to complete your return accurately.

Final Thought

A backdoor Roth IRA can be a powerful planning tool for higher earners, but it is not a “set it and forget it” strategy. Income limits, existing IRA balances, employer plan rules, and tax reporting all play a role in determining whether it makes sense for you.

Before implementing this strategy, it is wise to coordinate with both your financial advisor and tax professional to ensure the steps are executed correctly and aligned with your broader financial plan.

Sources:

https://districtcapitalmanagement.com/mega-backdoor-roth/

https://www.fidelity.com/learning-center/personal-finance/backdoor-roth-ira

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

The SECURE 2.0 Act represents one of the most significant updates to the U.S. retirement system in years. Building on earlier reforms, the legislation introduces a wide range of changes designed to help Americans save more effectively, reduce friction as they move between jobs, and improve financial readiness for retirement.

Previous retirement laws increased the age at which required minimum distributions (RMDs) begin and expanded access to annuities inside workplace plans. SECURE 2.0 goes further, refining contribution rules, modernizing plan features, and addressing challenges faced by workers at every stage of their careers—from student loan borrowers to retirees managing withdrawals.

Although the law includes dozens of provisions, the most impactful changes center on higher catch-up contributions, revised RMD rules, new Roth options, and expanded flexibility for emergency savings and disaster relief.

Below are 10 notable changes introduced under SECURE 2.0.

Changes That Matter Most for Those Near or in Retirement

1. Expanded catch-up contributions for ages 60–63

Beginning in 2025, workers who reach ages 60 through 63 during the calendar year can make enhanced catch-up contributions to eligible workplace retirement plans. The increased limit allows contributions of up to $11,250, replacing the standard $7,500 catch-up amount, provided the plan permits it.

Starting in 2026, a new rule applies to higher earners: individuals age 50 or older who earned more than $150,000 in the prior year must make catch-up contributions on a Roth (after-tax) basis. Those earning below that threshold—indexed for inflation going forward—are exempt.

For IRAs, the catch-up contribution remains $1,000 for individuals age 50 and older, but that amount will now be adjusted for inflation over time. It remains unchanged for 2025.

2. Required minimum distribution (RMD) rules updated

SECURE 2.0 continues the gradual shift toward later RMD start ages. As of 2023, RMDs begin at age 73, replacing the former age 72 threshold. Those who reached age 72 in 2022 or earlier must continue following their original RMD schedule.

Looking ahead, the RMD starting age will increase again—to 75—beginning in 2033.

The law also reduced penalties for missed RMDs. The excise tax dropped from 50% to 25%, and may be further reduced to 10% if the missed distribution is corrected and a revised tax return is filed within two years.

Additional RMD-related updates include:

●     Roth accounts within employer retirement plans are no longer subject to RMDs starting in 2024

●     Excess annuity payments from in-plan annuities may count toward satisfying annual RMD obligations

3. Employer matching contributions can go to Roth accounts

SECURE 2.0 allows employers to offer matching and profit-sharing contributions directly into Roth accounts, if the plan is designed to support it. Previously, employer matches were required to be pre-tax.

While adoption will take time due to administrative and payroll system updates, this change gives savers more flexibility to build tax-free retirement income.

4. Expanded charitable giving options through IRAs

Individuals age 70½ or older can continue using qualified charitable distributions (QCDs) to donate directly from an IRA. Beginning in 2024, SECURE 2.0 allows a one-time QCD—up to $54,000 in 2025, indexed for inflation—to certain split-interest charitable vehicles, such as charitable remainder trusts or charitable gift annuities.

This special QCD counts toward the annual QCD limit and can satisfy RMD requirements, provided the transfer is made directly from the IRA by year-end. Not all charities qualify, so careful planning is required.

5. Enhancements to longevity annuities

Qualified longevity annuity contracts (QLACs), which provide income later in life (typically by age 85), received several upgrades. The maximum premium limit increased to $210,000 in 2025, and the prior restriction limiting premiums to 25% of retirement account balances was eliminated.

These changes provide greater flexibility for retirees seeking to manage longevity risk and coordinate annuity income with RMD obligations.

Changes Focused on Workers Earlier in Their Careers

6. Automatic enrollment and portability

Starting in 2025, most newly established 401(k) and 403(b) plans must automatically enroll eligible employees at a minimum contribution rate of 3%. Contributions must also automatically escalate over time.

The law also enables retirement plan providers to offer automatic portability services, which move small retirement balances into a new employer’s plan when workers change jobs. This feature may reduce the likelihood of cash-outs that derail long-term savings.

7. Workplace emergency savings accounts

Defined contribution plans may now include a dedicated emergency savings account for non–highly compensated employees. These accounts are structured as Roth accounts and allow contributions of up to $2,500 annually, or a lower employer-set limit.

Participants can make up to four penalty-free withdrawals per year, and in some cases, employer matching contributions may apply. The goal is to help workers manage short-term financial shocks without tapping long-term retirement savings.

8. Student loan payment matching

Beginning in 2024, employers may treat qualifying student loan payments as if they were retirement plan contributions for purposes of matching. This allows employees burdened by education debt to receive employer retirement contributions even if they are unable to defer income into a retirement plan.

9. New flexibility for unused 529 plan funds

After a 529 plan has been open for at least 15 years, unused funds may be transferred to a Roth IRA for the designated beneficiary. Transfers are subject to annual Roth contribution limits and a lifetime cap of $35,000.

Only contributions made at least five years prior to the transfer are eligible, and transferred amounts count toward the beneficiary’s annual Roth IRA limit.

10. Expanded disaster-related retirement access

SECURE 2.0 broadened access to retirement funds following federally declared disasters. Eligible individuals may withdraw up to $22,000 with favorable tax treatment, including the option to spread income taxes over multiple years and potentially recontribute the funds.

Additional relief options may include enhanced plan loans or hardship withdrawals, depending on plan rules. While these provisions offer flexibility, withdrawals can still reduce long-term retirement growth and should be approached cautiously.

Final Thoughts

SECURE 2.0 introduces meaningful opportunities to strengthen retirement outcomes, but its impact varies based on age, income, employment status, and plan design. Understanding how these changes apply to your specific situation is essential.

Before making decisions, consider consulting a financial advisor or tax professional to ensure you are taking full advantage of the new rules while aligning them with your broader financial goals.

Sources: https://www.fidelity.com/learning-center/personal-finance/secure-act-2

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

Feeling the pinch every time you check out at the grocery store? You are far from alone.

Persistent inflation remains a major concern for households nationwide, with nearly half of Americans citing rising day-to-day costs as their top financial worry. Food prices alone climbed more than 3% nationally in 2025, adding pressure to already strained budgets. While forecasts suggest grocery inflation may cool somewhat in 2026, the financial strain many families feel today is real—and ongoing.

Rather than waiting for prices to settle, many people are responding proactively. Across the country, households are reassessing priorities, setting clearer goals, and building more intentional financial plans.

Financial resolutions are emerging as a practical way to regain control in the year ahead. Although nearly one-third of Americans describe their relationship with money as stressful, a strong majority say they have a plan to reach their financial goals. Even more encouraging, interest in setting financial resolutions continues to rise, signaling a renewed focus on thoughtful planning in 2026.

If you want to turn that momentum into meaningful progress, consider the following steps to strengthen your financial foundation this year.

1. Take stock of your financial picture

Before you can make progress toward any goal, you need clarity on where you stand. Set aside 30 to 60 minutes to review your full financial landscape—income, expenses, debts, and savings. This snapshot can help you identify priorities and determine how much flexibility you have to allocate toward future goals.

As part of this review, look closely at:

●     Your monthly take-home income

●     Essential expenses such as housing, food, insurance, and utilities

●     Discretionary spending like travel, dining, and entertainment

●     Outstanding debts, including balances, interest rates, and minimum payments

Seeing everything in one place can make it easier to decide whether your focus should be cutting expenses, paying down debt, or increasing savings—all of which can free up cash for longer-term goals.

2. Revisit your budget with future goals in mind

A budget should evolve as your life changes. Think of it as a flexible framework rather than a rigid set of rules. Establishing clear spending boundaries can help you stay aware of where your money is going and make room for priorities that matter most, such as retirement savings.

Many Americans find money management overwhelming, particularly younger generations juggling rising costs. Starting with a clear inventory of your finances can replace uncertainty with structure and confidence.

3. Protect your progress with adequate insurance

Building wealth takes time, so protecting what you’ve accumulated is essential. Maintaining appropriate insurance coverage—health, life, and disability—can help shield your finances from unexpected disruptions.

Employer-sponsored insurance plans often provide coverage at lower costs than individual policies. Taking advantage of those benefits can be an efficient way to safeguard your income and assets. Insurance may feel unnecessary until it isn’t—but when an unexpected event occurs, having coverage can prevent a financial setback from becoming a long-term obstacle.

4. Plan ahead for health care costs with tax-advantaged accounts

Health care expenses are a reality at every stage of life, and planning for them can reduce future stress. If you’re enrolled in a high-deductible health plan, a health savings account (HSA) can be a powerful tool. Contributions are tax-deductible, invested balances can grow tax-free, and withdrawals for qualified medical expenses are not taxed.

HSAs also offer flexibility: funds do not expire, and you can choose how much to keep in cash versus investments. If an HSA isn’t an option, a flexible spending account (FSA) may still help by allowing you to set aside pre-tax dollars for medical expenses—though unused funds may be forfeited at year-end depending on employer rules.

5. Build a starter emergency fund

Unexpected expenses—car repairs, medical bills, or temporary income loss—can quickly derail financial progress. Establishing an emergency fund provides a financial buffer during uncertain times.

A common starting point is setting aside $1,000, then gradually working toward covering three to six months of essential expenses. Keeping this money in a high-yield savings account or money market fund can help preserve accessibility while earning a competitive return.

6. Capture your employer’s retirement match

When juggling near-term priorities, long-term goals like retirement can fall down the list. However, if your employer offers a 401(k) match, contributing enough to receive the full match is one of the most effective financial moves you can make. Employer matches are essentially additional compensation—and missing out is leaving money on the table.

As you contribute, periodically review how your investments are allocated to ensure they align with your time horizon, risk tolerance, and broader goals.

7. Reduce high-interest credit card debt

Credit card balances with high interest rates can quietly erode your cash flow. Paying more than the minimum each month can significantly reduce the total interest you pay and accelerate your path to becoming debt-free.

If you carry multiple balances, consider focusing extra payments on the card with the highest interest rate while maintaining minimum payments on the rest. Alternatively, some people find motivation by paying off the smallest balance first and rolling those payments forward.

8. Strengthen your emergency savings over time

Once you’ve built a starter fund, aim to expand it into a fully funded emergency reserve. This level of savings can provide meaningful protection against larger disruptions such as extended unemployment or major medical issues.

The appropriate amount varies by household, but factors like job stability and the number of income earners can guide how much you may want to set aside.

9. Address remaining debt with rates above 6%

After eliminating high-interest credit cards, review other debts such as auto or personal loans. As a general guideline, debts carrying interest rates of 6% or higher may warrant accelerated repayment before directing additional funds toward investing beyond any employer retirement match.

Paying down these obligations can improve cash flow, reduce financial stress, and create more room for future goals.

Start the year with intention

Taking deliberate steps early in the year can help you regain control and build momentum. With thoughtful planning and consistent action, 2026 can be a year of meaningful financial progress. If you need guidance along the way, working with a financial advisor can help you turn these strategies into a plan tailored to your situation.

Sources:

https://www.fidelity.com/learning-center/personal-finance/best-new-years-resolutions-ideas

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

As the year draws to a close, it’s easy to focus on holiday plans and put financial tasks on hold. However, December 31 is more than just a symbolic turning point—it is a firm cutoff for many tax and planning opportunities. Decisions made (or missed) before year-end can influence your tax bill, long-term savings, and financial flexibility well into 2026.

Below is a practical, year-end checklist of ten actions worth reviewing before the calendar turns.

1. Maximize Retirement Plan Contributions

Contributions to employer-sponsored retirement plans such as 401(k)s and 403(b)s must be completed by December 31. For 2025, the contribution limit is $23,500. Individuals age 50 and older may contribute an additional $7,500, and some plans allow even higher catch-up contributions for those ages 60 through 63.

While IRA and HSA contributions can generally be made up until the tax filing deadline, contributing before year-end may provide earlier tax benefits. If you receive a year-end bonus, consider directing a portion into your retirement plan.

For HSAs, timing matters. Contributions made through payroll withholding avoid Social Security and Medicare taxes, while direct contributions do not. To capture this benefit for 2025, payroll elections typically must be in place before your final paycheck of the year.

2. Take Required Minimum Distributions

If you are age 73 or older, required minimum distributions (RMDs) from traditional IRAs and most employer retirement plans must be taken by December 31. Failure to do so can result in significant penalties.

Charitably inclined individuals may consider directing part or all of an RMD to a qualified charity through a qualified charitable distribution (QCD). This approach can satisfy the RMD requirement without increasing taxable income.

Inherited IRA rules are more complex, particularly for non-spouse beneficiaries. Depending on when the original owner passed away, annual withdrawals may be required in addition to the 10-year distribution rule.

3. Evaluate Roth Conversion Opportunities

Converting assets from a traditional IRA to a Roth IRA must be completed by December 31 to be included in the current tax year. While the converted amount is taxable today, future qualified withdrawals from a Roth are generally tax-free, and Roth IRAs are not subject to RMDs.

Periods of market volatility may create opportunities to convert assets at lower values, potentially reducing the tax cost of the conversion. Roth conversions can also help diversify future tax exposure in retirement.

4. Review Tax-Loss Harvesting Opportunities

Realizing investment losses before year-end can help offset capital gains and, in some cases, reduce ordinary income. Losses that exceed current-year limits can be carried forward to future years.

Be mindful of wash sale rules, which disallow losses if a substantially identical investment is purchased within 30 days before or after the sale.

5. Make Charitable Gifts Strategically

Charitable contributions must be completed by December 31 to be deductible for the current year. Beyond writing a check, there are planning strategies that may increase the tax benefit of giving.

Donating appreciated securities held for more than one year may allow you to avoid capital gains taxes while still receiving a charitable deduction. Some individuals also choose to group multiple years of giving into a single year to exceed the standard deduction threshold and itemize.

6. Spend Remaining FSA Balances

Flexible spending account (FSA) funds often expire at year-end. While some plans allow a grace period or limited rollover, unused funds may be forfeited. Review your plan’s rules and submit eligible expenses before the deadline.

7. Fund Education Savings Accounts

Contributions to 529 plans made by December 31 may qualify for state tax incentives, depending on where you live. Families may also consider prepaying tuition for early 2026 to maximize education-related tax credits.

For larger gifts, 529 plans allow individuals to front-load up to five years’ worth of annual gift exclusions without triggering gift tax, provided proper reporting is completed.

8. Take Advantage of Annual Gifting Limits

You may gift up to $19,000 per recipient in 2025 without using your lifetime estate and gift tax exemption. Married couples can double this amount by splitting gifts.

Strategic gifting can reduce the size of a taxable estate while allowing you to support children, grandchildren, or other family members during your lifetime.

9. Accelerate Eligible Deductions

If you expect to itemize deductions, paying certain expenses before year-end may be beneficial. Medical expenses that exceed 7.5% of adjusted gross income may be deductible, so advancing procedures or prescriptions could help meet the threshold.

Similarly, making mortgage or property tax payments earlier than scheduled may increase deductible amounts, provided the payment is credited before year-end.

10. Delay Income When Appropriate

Self-employed individuals or those with variable income may be able to postpone billing or income recognition until January. Deferring income could help manage tax brackets or reduce exposure to certain surtaxes, though this approach should be evaluated carefully.

Final Thoughts

Year-end planning is about more than meeting deadlines—it’s about positioning yourself for the year ahead. While not every strategy will apply to every situation, reviewing these items before December 31 can help identify meaningful opportunities and avoid costly oversights.

Because tax rules are complex and frequently change, working with a financial or tax professional can help ensure these decisions align with your broader financial plan.

Sources:

https://www.fidelity.com/learning-center/personal-finance/year-end-money-checklist

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

An unexpected exit from the workforce—whether caused by a late-career layoff, an economic downturn, or a medical condition—can be especially disruptive when it occurs before you are eligible for Social Security. Beyond the emotional toll, the financial implications often arrive quickly and require careful decision-making.

Although Social Security benefits can begin as early as age 62, claiming too soon can permanently reduce your monthly income. For many individuals, delaying benefits—if financially feasible—can significantly improve long-term retirement security. Benefits increase by roughly 8% per year for each year you delay beyond full retirement age, up until age 70. Claiming earlier can reduce your benefit by as much as 30%, and it may also lower the survivor benefit available to a spouse.

If you find yourself unintentionally retired, the following five steps can help you evaluate your options and determine how to generate income until longer-term benefits become available. As always, these decisions should be made in consultation with a qualified financial professional.

Step 1: Capture Every Available Benefit

A job loss may come with severance pay, continued health insurance, or other transitional benefits. Carefully review any severance agreement, as these packages may replace income for weeks or months and extend employer-sponsored benefits.

If you plan to seek new employment, you may also qualify for unemployment compensation. Eligibility and benefit levels vary by state and are typically tied to your recent earnings. In many cases, unemployment benefits begin only after severance payments have ended.

Retirement accounts from a former employer deserve attention as well. Many plans allow balances above a certain threshold to remain invested after separation. Alternatively, rolling assets into an IRA may provide broader investment flexibility. If your former employer offered stock-based compensation—such as restricted stock units or stock options—be sure to understand vesting rules and exercise deadlines, which often accelerate or expire shortly after termination.

Step 2: Reassess Your Spending Plan

An unplanned retirement makes budgeting essential. Start by identifying your monthly fixed and discretionary expenses, then compare them against your expected income sources.

This review often reveals opportunities to reduce spending, particularly discretionary costs such as dining, travel, or subscriptions. With more time available, lifestyle adjustments—like cooking at home or delaying large purchases—can meaningfully reduce cash-flow pressure.

In some cases, supplementing income through part-time or consulting work may be a practical way to narrow any shortfall while preserving long-term assets.

Step 3: Evaluate How Your Assets Can Support Income

Your home and investment portfolio may offer ways to generate interim income. Some homeowners consider tapping equity through a line of credit, though higher interest rates make borrowing decisions especially important to evaluate carefully.

Downsizing may also be an option. Proceeds from a home sale can be deployed strategically, such as funding a short-term income solution like a bond ladder or a time-limited annuity designed to provide predictable payments until Social Security begins.

Because an early retirement often shortens your time horizon and alters risk tolerance, it is also an appropriate time to review your investment allocation to ensure it aligns with your revised circumstances.

Step 4: Plan Withdrawals With Taxes in Mind

Drawing from savings requires thoughtful coordination to avoid unnecessary taxes or penalties.

●     Health Savings Accounts (HSAs): Funds can be used tax-free for qualified medical expenses, including COBRA premiums and health insurance while receiving unemployment benefits.

●     Traditional retirement accounts: Withdrawals are generally taxed as ordinary income, and distributions before age 59½ may trigger penalties unless an exception applies. Certain rules—such as penalty-free withdrawals from a former employer’s 401(k) after age 55—may offer flexibility.

●     Roth accounts: Contributions can be withdrawn at any time tax- and penalty-free, while earnings may also be tax-free if specific requirements are met.

●     Taxable accounts: Selling appreciated investments can generate capital gains, making timing and asset selection important.

A coordinated withdrawal strategy can help extend the life of your savings while managing tax exposure.

Step 5: Secure Health Insurance Coverage

Health care often becomes one of the most complex issues in early retirement. If you are under 65 and not eligible for Medicare, coverage options may include COBRA, a spouse’s employer plan, an ACA marketplace policy, or private insurance.

Each option has different cost structures, coverage rules, and enrollment deadlines, making it important to compare them carefully to avoid gaps in coverage.

Special Considerations for Medical Disability

If retirement occurs due to a medical condition, additional income sources may be available:

●     Employer-provided disability insurance typically replaces a portion of income, though benefits may be taxable depending on how premiums were paid.

●     Individual disability policies generally provide tax-free benefits and may supplement employer coverage.

●     Social Security Disability Insurance (SSDI) can offer long-term income, though approval can be difficult and time-consuming. Approved benefits convert to standard Social Security retirement benefits at full retirement age.

A Hypothetical Example

Consider a couple forced into early retirement due to a medical event. By reducing discretionary expenses, coordinating disability income, and making modest withdrawals from savings, they are able to delay Social Security until full retirement age—resulting in a higher lifetime benefit and improved long-term stability. For others, claiming earlier may be necessary, and a shorter “bridge” to age 62 may be more realistic.

Final Thoughts

An unplanned retirement can feel overwhelming, but it does not eliminate your options. With careful planning, disciplined spending, and a well-constructed bridge strategy, it is often possible to navigate the transition without sacrificing long-term financial security.

Working with a trusted advisor can help you weigh trade-offs, avoid costly missteps, and create a strategy that connects today’s realities with tomorrow’s retirement income.

Sources:

https://www.fidelity.com/learning-center/personal-finance/retirement/unplanned-early-retirement

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

As the calendar year winds down, investors often hear about the so-called “Santa Claus Rally.” The phrase appears frequently in financial headlines and market commentary, especially in December. While it may sound whimsical, the Santa Claus Rally refers to a well-documented market tendency that has attracted attention for decades.

Understanding what it is—and what it is not—can help investors keep seasonal market behavior in proper perspective.

What Is the Santa Claus Rally?

The Santa Claus Rally refers to the tendency for U.S. stock markets to post positive returns during the final days of December and the first few trading days of January. Traditionally, it is defined as the last five trading days of the year plus the first two trading days of the new year.

This pattern was first identified in the 1970s by Yale Hirsch, creator of the Stock Trader’s Almanac, who observed that this short window historically delivered above-average returns compared to other periods of the year.

Importantly, the Santa Claus Rally is not a guaranteed outcome. It is a statistical tendency observed over long periods of time, not a promise of short-term gains in any given year.

What Causes the Santa Claus Rally?

There is no single explanation for why the Santa Claus Rally occurs. Instead, it is likely driven by a combination of behavioral, institutional, and structural factors.

Seasonal optimism and investor sentiment

The end of the year often coincides with improved investor sentiment. Tax planning is largely complete, earnings uncertainty is lower, and optimism about the coming year can influence buying behavior.

Lower trading volume

Many institutional investors and traders reduce activity around the holidays. With fewer participants in the market, modest buying pressure can have a greater impact on prices.

Year-end portfolio positioning

Portfolio managers may rebalance holdings before year-end, deploy remaining cash, or adjust allocations ahead of the new year. These flows can provide temporary support to equity prices.

Bonus and contribution effects

Year-end bonuses, retirement contributions, and new allocations for the coming year can add incremental demand for equities, particularly in early January.

Together, these dynamics can create a short-term environment that favors rising stock prices, even if broader economic conditions remain unchanged.

Common Misconceptions About the Santa Claus Rally

Despite its popularity, the Santa Claus Rally is often misunderstood. Several misconceptions are worth addressing.

Misconception #1: It happens every year

The Santa Claus Rally does not occur annually. There have been many years when markets declined during this period. Like all market patterns, it reflects probabilities, not certainties.

Misconception #2: It predicts the year ahead

Some investors believe that the presence—or absence—of a Santa Claus Rally forecasts market performance for the entire next year. While market historians sometimes note correlations, there is no reliable evidence that this short period determines long-term outcomes.

Misconception #3: It’s a strategy you can trade reliably

Trying to trade solely around the Santa Claus Rally can lead to poor decisions, higher transaction costs, and unintended tax consequences. Short-term seasonal effects are unpredictable and can be overwhelmed by unexpected news, economic data, or geopolitical events.

Misconception #4: It means risk disappears at year-end

Markets remain subject to volatility regardless of the season. Economic reports, central bank announcements, and global developments do not pause for the holidays.

How Investors Should Think About It

The Santa Claus Rally is best viewed as an interesting historical tendency—not an investment strategy. For long-term investors, it reinforces a broader lesson: markets are influenced by human behavior as much as fundamentals, especially over short periods.

Rather than attempting to time year-end movements, investors are generally better served by:

●     Staying disciplined with their long-term plan

●     Rebalancing portfolios as needed

●     Managing taxes thoughtfully

●     Avoiding emotional decisions driven by seasonal headlines

Final Thoughts

The Santa Claus Rally captures attention because it combines market history with seasonal psychology. While it has appeared often enough to earn a name, it should not overshadow sound financial planning or long-term investment principles.

Markets may enjoy a holiday lift—or they may not. What matters most is maintaining a strategy built around goals, diversification, and time in the market, not short-term calendar effects.

Sources:

https://corporatefinanceinstitute.com/resources/career-map/sell-side/capital-markets/santa-claus-rally/

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

As the year winds down, it’s easy to focus on holiday plans—but your financial checklist deserves attention, too. Year-end isn’t just a date on the calendar; it’s a key deadline for actions that can reduce your taxes, boost retirement savings, and set the stage for a stronger 2026. Missing these deadlines could mean lost tax advantages or penalties.

Here’s a practical guide to 10 important steps to consider before December 31.

1. Maximize retirement plan contributions

For workplace retirement accounts like 401(k)s and 403(b)s, December 31 is the final day to contribute for 2025. The standard contribution limit is $23,500, with catch-up options of $7,500 for those 50+, and up to $11,250 for certain individuals aged 60–63 if your plan allows.

IRAs and health savings accounts (HSAs) offer a bit more flexibility, with contributions allowed until April 15, 2026. But contributing before year-end can lower your taxable income sooner. If you receive a year-end bonus, consider directing part of it into your retirement account.

HSA Tip: Contributions through payroll can save FICA taxes, unlike direct contributions. To capture this benefit for 2025, make sure payroll deductions occur before year-end.

2. Take required minimum distributions (RMDs)

If you’re 73 or older, you must withdraw your RMD from traditional IRAs and most workplace accounts by December 31 to avoid penalties of up to 25%.

Charitable giving via a qualified charitable distribution (QCD) can satisfy your RMD while reducing taxable income, and supports organizations you care about. Non-spouse inherited IRA beneficiaries may also need to withdraw by year-end, depending on the account’s rules and the original owner’s age at death.

3. Evaluate a Roth conversion

Converting funds from a traditional IRA to a Roth IRA by December 31 means the converted amount counts toward 2025 taxable income. While you’ll pay taxes now, future qualified withdrawals are tax-free and Roth IRAs aren’t subject to RMDs.

If your investments have declined, a year-end conversion could result in a lower tax bill while helping diversify your retirement tax strategy.

4. Harvest investment losses

Selling investments that have declined in value and replacing them with similar assets can offset gains and up to $3,000 of ordinary income. Unused losses carry forward indefinitely.

Be mindful of wash-sale rules, which prevent repurchasing the same or substantially identical security within 30 days. Cryptocurrencies currently have different rules, but regulations may change.

5. Make charitable contributions

To count for 2025, donations must be completed by December 31. Strategies like bunching donations or using a donor-advised fund can maximize deductions. Donating appreciated assets, such as long-term stocks, may also reduce capital gains taxes.

Even if you don’t itemize, combining several years’ donations into one year could make itemizing worthwhile. Recent changes in charitable giving rules may make it beneficial to accelerate some donations.

6. Use remaining flexible spending account (FSA) funds

Most FSAs follow a “use-it-or-lose-it” rule. Spend any leftover funds before year-end unless your plan allows a rollover or grace period. Check your employer’s rules carefully.

7. Contribute to education savings

Contributions to 529 plans by December 31 can qualify for state tax benefits. Prepaying tuition for early 2026 can also maximize federal education credits.

You can front-load up to five years’ worth of the annual gift tax exclusion—$95,000 per individual or $190,000 if split with a spouse—without triggering a gift tax, as long as IRS Form 709 is filed.

8. Make strategic gifts

Gifting up to $19,000 per recipient in 2025 is tax-free, or $38,000 for married couples splitting gifts. This can reduce estate value and help family members with education, housing, or other financial needs.

9. Accelerate deductible expenses

If you’re near the medical expense threshold of 7.5% of AGI, paying for treatments or prescriptions before year-end could help you itemize. Other deductible expenses, like mortgage interest or property taxes, can sometimes be accelerated if you plan to itemize. Verify that any payments made for 2026 purposes are applied correctly to 2025.

10. Consider deferring income

Freelancers or self-employed individuals may reduce 2025 taxable income by delaying billing until January. This strategy could keep you in a lower tax bracket, but it’s important to confirm it works with your overall tax plan.

Looking Ahead

Even if you miss a deadline, there may be opportunities next year. Acting now, however, can maximize savings and reduce stress. Tax laws are complex and subject to change, so working with a financial or tax professional is recommended to tailor strategies to your personal situation.

Sources:

https://www.fidelity.com/learning-center/personal-finance/year-end-money-checklist

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

As we approach a new year, it’s natural to think about goals—both personal and financial. While no one can predict exactly what 2026 will bring, thoughtful planning can help ensure you are prepared for change and positioned to take advantage of opportunity. From our perspective, the most meaningful financial goals for the year ahead are not just about numbers on a statement, but about creating structure, flexibility, and confidence in your overall plan.

Start With Clarity

Over time, financial lives tend to grow more complex. Multiple accounts, legacy strategies, and outdated assumptions can quietly accumulate.

One valuable goal for 2026 is to step back and simplify where possible. This might include consolidating accounts, reviewing your investment allocation, or confirming that each component of your plan still serves a clear purpose. Greater clarity makes your plan easier to manage and easier to adapt when circumstances change.

Focus on Progress, Not Perfection

Financial progress rarely follows a straight path. Markets fluctuate, priorities evolve, and life intervenes. Rather than aiming for perfection, a healthier goal for 2026 is steady progress.

Incrementally increasing savings, maintaining a disciplined investment approach, or continuing to reduce debt can have a meaningful long-term impact. Consistent habits, applied over time, often matter more than short-term results.

Plan for Meaningful Experiences

Money is most powerful when it supports the life you want to live. Many families are placing greater emphasis on experiences—time with loved ones, travel, personal growth, or flexibility in how they spend their days. A thoughtful goal for 2026 is to plan for these priorities intentionally. Building experiences into your financial plan helps ensure they are enjoyed without undermining long-term security.

Build Resilience Into Your Plan

Another important focus for the year ahead is resilience. This includes maintaining adequate cash reserves, reviewing insurance coverage, and stress-testing your plan against unexpected events. A resilient plan is designed to bend, not break. Flexibility—having multiple ways to reach your goals—can provide peace of mind and help you stay on course even when conditions are less than ideal.

Revisit Estate and Legacy Planning

For many families, 2026 is an opportunity to revisit estate planning with fresh perspective. Beyond having documents in place, it’s important to ensure your plan reflects your current wishes and family dynamics. Reviewing beneficiary designations, updating key documents, and having open conversations with loved ones can help align your financial legacy with your values.

Confidence Comes From Preparation

Ultimately, one of the most important goals for 2026 is confidence. Not confidence in predicting markets, but confidence in knowing you have a well-thought-out plan that evolves with your life. When decisions are grounded in a clear strategy, it becomes easier to tune out short-term noise and focus on what truly matters.

As we look ahead, the goal is not simply to do more, but to plan better. A thoughtful financial plan can help you move into 2026 with clarity, purpose, and the flexibility to navigate whatever the year may bring.

Sources:

https://www.citizensbank.com/learning/new-year-financial-planning-checklist.aspx

https://altuswealthmgt.com/resources/financial-planning/preparing-for-2026-key-wealth-planning-priorities-in-an-evolving-landscape/

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

December 12, 2025

Losing someone without warning is one of life’s most devastating experiences. The shock can be overwhelming, and the number of decisions that suddenly fall on your shoulders can feel impossible to manage. When a spouse, parent, or close family member passes unexpectedly, it is common to feel unprepared—especially if they had not made plans or organized their affairs.

Yet even in the midst of heartbreak, there are concrete next steps that can help you stabilize the situation, honor your loved one, and support those who remain. What follows is a grounded, step-by-step framework to guide you through the first days and weeks after an unexpected loss.

1. The First Decisions: Handling the Remains

The initial logistical question typically involves the care and transfer of the body. If the death occurs in a hospital, staff will safeguard the remains temporarily and ask which funeral home should receive them. Hospitals can generally hold the body for several days, but storage fees often begin after 72 hours.

If the death occurs at home, a funeral home must be contacted to transport the body as soon as possible.

Even in these early hours, do not let anyone rush you into a decision. Funeral costs vary widely, and the national median cost for a traditional funeral now exceeds $8,000. Take time to call funeral homes directly, compare pricing, and confirm which services are optional. If a provider pressures you to commit on the spot, consider choosing another.

You have time to make a thoughtful choice. A brief pause to gather yourself and weigh options is completely appropriate.

2. Understanding Life Insurance Benefits

If your loved one held a life insurance policy with you as beneficiary, the benefit may help pay for funeral expenses or provide financial stability in the weeks ahead. To file a claim, you will need a certified death certificate, which is relatively simple and inexpensive to obtain through state or county offices.

If you are unsure whether a policy exists, do not assume one wasn’t in place. Every year, millions of dollars in benefits go unclaimed simply because families are unaware the coverage existed. The National Association of Insurance Commissioners (NAIC) offers tools to search for policies that may not be immediately apparent.

3. Planning Funeral or Memorial Arrangements

Once the funeral home has taken the remains into their care, you will meet with a director to discuss your options. If your loved one did not leave instructions, you will need to choose the type of service and disposition that reflects their values and your family’s needs.

Traditional funerals—with embalming, visitation, and burial—tend to be the most costly, though you can control expenses by adjusting the type of casket, length of viewing, or other service details.

Cremation, especially “direct cremation” with no visitation, typically costs far less—often around $1,000.

Emerging alternatives may also appeal to families seeking a simpler or more environmentally aligned approach:

• Green or natural burials, which use biodegradable materials and forgo embalming, usually cost between $2,000 and $4,000.

• Burial at sea, with or without attendees, ranges widely depending on the provider.

• Cremation plus a later memorial, which spreads costs and gives families more flexibility in planning.

If your loved one practiced a particular faith tradition, local religious communities often provide lower-cost memorial support.

Above all, remember: honoring someone’s life does not require extravagant spending. A heartfelt gathering of family and friends can be just as meaningful.

4. Closing Accounts and Managing Digital Footprints

Once immediate arrangements are underway, you will need to begin notifying institutions of the death and closing accounts. This often includes:

• Bank and credit card accounts

• Insurance policies

• Social media profiles

• Online subscriptions and streaming services

• Email accounts

• Loyalty programs or memberships

Having a death certificate readily available makes these conversations easier. If you run into unhelpful or confusing procedures, resources such as Everplans offer step-by-step guides for shutting down hundreds of digital services.

This part of the process can take time, so approach it gradually. It does not need to be completed in a single sitting.

5. Caring for Yourself: Grief Support and Mental Health Resources

Grief unfolds differently for everyone, and there is no “correct” way to mourn. What matters most is finding support that helps you move through your loss without added financial strain.

Affordable options exist, including:

• Community-based grief groups, such as those offered through GriefShare, typically at little or no cost

• Support programs connected to funeral homes

• Group counseling, which is often more affordable than one-on-one therapy

• Specialized support groups for those grieving a spouse, sibling, or other specific relationship

• Medicare-covered mental health services, if you qualify

Your emotional well-being matters. Seeking support—whether through counseling, faith communities, family, or peers—can make the weight of loss feel more manageable.

Taking Things One Step at a Time

The aftermath of a sudden death is disorienting, painful, and filled with responsibilities you never asked for. Yet you do not need to manage everything at once.

Handle only the next task in front of you. Reach out for help when you need it. And remind yourself that grieving is not linear—your process will be your own.

With patience, support, and time, you can navigate the necessary logistics while preserving the dignity, memory, and legacy of the person you loved.

Sources:

https://www.thepennyhoarder.com/insurance/what-to-do-when-a-loved-one-unexpectedly-dies/

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

Tax Day represents more than the deadline for filing your return or requesting an extension. It also marks the cutoff for making contributions to most types of Individual Retirement Accounts (IRAs).

For individuals looking to strengthen their retirement savings or potentially reduce their tax liability, the weeks leading up to the deadline can be an important planning window. The following overview outlines the key dates and contribution rules for traditional, Roth, SEP, and SIMPLE IRAs for the 2025 tax year.

Traditional and Roth IRA Deadlines for 2025

Individuals contributing to a traditional IRA or Roth IRA have until the federal tax filing deadline—April 15, 2026—to make contributions for the 2025 tax year. The contribution limits for 2025 remain straightforward:

●     Up to $7,000 if you are under age 50

●     Up to $8,000 if you are age 50 or older (due to catch-up contributions)

Eligibility to deduct traditional IRA contributions or to make Roth IRA contributions may be reduced or phased out at higher income levels. Reviewing current IRS income thresholds or consulting updated guidance can help clarify how much you are permitted to contribute or deduct.

SEP IRA Contribution Deadline for 2025

Self-employed individuals and small business owners using Simplified Employee Pension (SEP) IRAs follow a different timeline. SEP contributions for 2025 can be made up to the due date of the sponsoring business’s tax return, including any approved extensions.

Contribution amounts are based on a percentage of compensation—generally up to 25% of eligible earnings—subject to IRS calculations for self-employment income. The maximum allowable SEP IRA contribution for 2025 is $70,000. Because business tax deadlines vary depending on the entity structure, the applicable SEP contribution deadline varies as well.

SIMPLE IRA Contribution Deadlines for 2025

Savings Incentive Match Plans for Employees (SIMPLE IRAs) operate under dual deadlines because both employers and employees make contributions. This distinction is especially notable for self-employed individuals who function in both roles.

Employee deferrals:

Salary deferrals for the 2025 tax year must be deposited as soon as reasonably possible but no later than 30 days after the end of the month in which the deferral was withheld. For compensation deferred in December 2025, the latest permissible date to deposit employee contributions is January 30, 2026.

Employer contributions:

Employer matching or non-elective contributions may be made up to the business’s tax return due date, including extensions.

Contribution limits:

For 2025, SIMPLE IRA employee deferrals are capped as follows:

●     $16,500 standard limit

●     $20,000 for individuals ages 50–59 or 64+

●     $21,750 for individuals ages 60–63 (reflecting the enhanced catch-up provision)

For businesses with 25 or fewer employees, or those with up to 100 employees that have adopted the required 4% match or 3% non-elective contribution, the maximum deferral increases to $17,600 for 2025. With catch-up contributions, the maximum ranges from $21,450 to $22,850, depending on age. Employers must either match up to 3% of employee compensation or provide a flat 2% non-elective contribution.

Strategies for Maximizing IRA Contributions

Thoughtful planning can help you make the most of your IRA contributions and strengthen your long-term retirement outlook.

Select the Appropriate Account Type

Choosing between a traditional IRA and a Roth IRA often comes down to how you want to manage taxes today versus in the future.

●     Traditional IRAs may offer tax-deductible contributions, subject to income limits and participation in workplace plans. Distributions in retirement are taxable as ordinary income.

●     Roth IRAs accept after-tax contributions but offer tax-free growth and tax-free withdrawals once you reach age 59½ and satisfy the five-year rule.

Both account types permit penalty-free withdrawals beginning at age 59½, although Roth earnings require the five-year holding period to avoid taxes.

Contribute Early, and Contribute Consistently

Long-term retirement readiness is often built on two core behaviors:

●     Establish a consistent savings pattern. Whether you contribute monthly or annually, regular funding can help smooth market fluctuations and build momentum.

●     Start as early as possible. Early contributions benefit most from compounding, giving your long-term savings strategy more time to grow.

Depending on your income, contributions may also qualify for a deduction or the Saver’s Credit, offering potential tax benefits for the 2025 filing year. Looking ahead to 2026, you can automate your retirement savings and consider adjusting your withholding or estimated payments to reflect anticipated deductions or credits.

Sources:

https://www.fidelity.com/learning-center/smart-money/ira-contribution-deadline

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.

Retirement rarely unfolds in a straight line. Over several decades, the way you live—and what you spend—naturally shifts.

The early years may be filled with travel, hobbies, and a busy social calendar. Later on, you may gravitate toward simpler routines and activities that require less physical exertion. These transitions often bring meaningful changes to your spending patterns.

Rather than remaining flat, retirement spending tends to rise and fall over time. A flexible plan can help you adjust as your priorities evolve. The sections below outline three stages many retirees experience, along with strategic planning considerations for each.

Phase 1: The Go-Go Years

What to Expect in the Early Years of Retirement

The initial stage of retirement is often full of momentum. Many retirees finally have time for extended travel, hobbies, family engagements, and activities they postponed while working. Spending often increases simply because life becomes more active and experience-heavy.

How to Build Reliable Income in Early Retirement

Your retirement income may come from Social Security, pensions, annuities, and investment withdrawals. Ensure that predictable sources cover your essential expenses so market volatility doesn’t disrupt your basic needs. Some retirees use a portion of their savings to purchase lifetime income annuities for added stability.

Creating a Sustainable Leisure Spending Plan

A strong spending plan balances enjoyment and preservation. Allocating funds for travel, hobbies, and family support—while tracking withdrawal rates—helps you avoid both overspending and unnecessary constraints. Financial modeling can help you spend confidently in this active period.

Why Growth Investing Still Matters in Retirement

Even after leaving the workforce, your portfolio needs exposure to assets that can outpace inflation. An overly conservative strategy may hamper long-term financial security. Align your investment mix with your risk tolerance while maintaining room for growth.

Planning for Long-Term Care Early

Because Medicare does not cover most long-term care services, explore options early. Consider dedicated long-term care insurance or hybrid life/long-term care products that offer flexibility and potential legacy benefits.

Phase 2: The Slow-Go Years

How Retirement Spending Changes in Your 70s and 80s

By your mid-70s or early 80s, your pace may naturally slow. Travel and large-scale activities may decrease, while routines and proximity to home take center stage. Your spending often shifts alongside your lifestyle.

Managing RMDs for Tax Efficiency

Once required minimum distributions begin, withdrawals from tax-deferred accounts can increase your taxable income. If your RMDs exceed your spending needs, consider reinvestment strategies, charitable giving, or other tax-mitigating options.

Evaluating Housing and Aging-in-Place Options

Whether you stay in your home, downsize, or relocate, this is the period to assess what living arrangement best supports your health and comfort. If you prefer to stay put, plan for renovations that enhance safety and accessibility.

Benefits of Lifetime Gifting for Estate Planning

Gifting assets to heirs during your lifetime may reduce estate taxes and allow you to witness the impact of your generosity. Cash, appreciated securities, real estate shares, or business interests can all be part of a lifetime gifting strategy.

Phase 3: The No-Go Years

Planning for Increased Health Needs in Late Retirement

As you enter your late 80s and beyond, health care often becomes the largest driver of spending. Mobility changes may increase the need for caregivers or supportive living arrangements.

Ensuring Liquidity for Medical and Care Costs

Keep accessible funds available for unexpected medical or personal care expenses. Strategies such as maintaining ample cash reserves or using backed lines of credit can help avoid forced asset sales.

Updating Estate and Health Care Documents

Review and update wills, trusts, powers of attorney, and health care directives to reflect your current wishes. Clear communication with trusted family members or decision-makers is critical.

Passing on More Than Money—Sharing Values and Intentions

A successful legacy plan communicates the meaning behind the assets. Family meetings and side letters can help heirs understand your intentions, reduce confusion, and strengthen multigenerational continuity.

A Flexible Retirement Plan Supports Every Stage

Retirement spans many years, and your financial plan should evolve with you. Anticipating lifestyle changes and spending patterns helps you navigate each stage with confidence. With a roadmap that adapts as life unfolds, you can enjoy retirement more fully while staying prepared for both the expected and the unexpected.

Sources:

https://www.fidelity.com/learning-center/wealth-management-insights/living-in-retirement

Disclosure:

This information is an overview and should not be considered as specific guidance or recommendations for any individual or business.

This material is provided as a courtesy and for educational purposes only.

These are the views of the author, not the named Representative or Advisory Services Network, LLC, and should not be construed as investment advice. Neither the named Representative nor Advisory Services Network, LLC gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. Please consult your Financial Advisor for further information.