FINANCIaL
FIELd NOTES
The Full Scope of Eligible HSA Reimbursements
Open enrollment is running at most employers right now, and Medicare's window opened October 15. A rule change took effect for 2026 that widens who can fund a health savings account. Bronze and catastrophic marketplace plans now count as HSA-compatible coverage (Source: IRS Notice 2026-05)…
Direct Indexing Explained
While most investors focus on their gross return (the number on your statement or custodial website), the most important number is your net after-tax return. If two investments earn the same rate of return but one is taxed at a higher rate, we know who is coming out ahead. For the right client, direct indexing can significantly improve after-tax returns.
Typically, when you buy an index fund, you own one investment, and inside it are several hundred companies. Direct indexing gives you those same companies, except you own the shares themselves, weighted so the whole thing behaves like the index. On your statement, you will see each stock you own (i.e Apple, McDonalds, etc)…
Optimizing Tax Lot Selling
Many clients have spent decades building a brokerage account by consistently saving, reinvesting dividends, and staying invested through the bumps. Now, as they approach retirement, they are ready to start drawing it down. The question most people never think to ask until they are actually selling: which shares do you sell first?
The answer can save you thousands of dollars a year in taxes…
When Tax Brackets Lie to You
On paper, a retiree can look like they are firmly in the 12% bracket. In practice, their next dollar of income can cost nearly three times that. The reason is due to the way the tax system works, particularly something called “income stacking.”
Take a retired couple, the Smiths. Their income this year looks like this: $48,000 in ordinary income from Social Security, a small pension, and interest, alongside $130,000 in long-term capital gains and qualified dividends from their brokerage account…
When Pre-tax (not Roth) 401k Contributions Can Make Sense
Most people think of the Roth vs. pre-tax 401(k) decision as a simple bet on future tax rates. But there is a more specific opportunity hiding in that choice, particularly in the years leading up to retirement, and it has everything to do with where in the bracket structure your deduction lands versus where your Roth conversion starts…
The Age 60-63 “Super Catch-Up”
Last year, as part of Secure 2.0, the “super catch-up” became available to pre-retirees saving in their 401k. It’s a generous rule, specifically for the four-year window between ages 60 and 63, that allows a meaningfully larger contribution during what are often peak earning years…