Join Christine Mathieu and Shawn Glogowski for a conversation about the role our relationship with money plays in the financial decisions we make. Through real-life client examples, they’ll explore what wealth coaching is, how it complements financial planning, and why understanding the person behind the plan can lead to more thoughtful decisions and better financial outcomes.
What We’ll Cover:
Discover what wealth coaching is and why it has become an integral part of our planning process
Learn how your beliefs, experiences, and emotions around money shape the financial decisions you make.
Hear real-life client stories that illustrate how wealth coaching and financial planning work together.
Explore why understanding the person behind the plan can lead to better financial outcomes.
Walk away with practical insights you can apply to your own financial journey
Discover how 529 plans can help support future education costs through tax-advantaged savings, strategic gifting, and long-term planning.
In my first month at Note Advisors, I’ve noticed a wonderful trend: many grandparents are incredibly eager to make a lasting impact on their grandchildren’s education.
Recently, someone asked whether they could contribute appreciated stock directly to a grandchild’s 529 plan to bypass capital gains taxes.
While the short answer is no, it highlights a great opportunity to break down how 529 plans work and how to navigate this exact scenario.
What Is a 529 Plan?
Authorized by Section 529 of the Internal Revenue Code, 529 plans are tax-advantaged savings accounts designed to encourage saving for future education costs. Here are some key benefits of opening one:
Tax Benefits
Contributions are made with after-tax dollars.
Earnings grow 100% tax-free.
Withdrawals are tax-free when used for Qualified Higher Education Expenses.
Diverse Educational Pathways
Traditional 2- and 4-year public and private colleges and universities
Graduate programs
Technical and trade schools
Registered apprenticeship programs
No Income or Age Restrictions The beneficiary must be a U.S. citizen or resident alien with a valid Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).
Contribution Rules
By law, all 529 contributions must be made in cash or cash equivalents, such as checks, electronic transfers, or payroll deductions. While you cannot transfer stock directly into a 529 plan, there are ways to maximize contributions.
Maximizing Contributions: It’s Per Giver, Not Per Plan
There is no limit on how many different people can contribute to a single child’s plan. The 2026 rules apply to each individual donor:
Annual Exclusion
Each individual can contribute up to $19,000 per year (or $38,000 for married couples filing jointly) per beneficiary without triggering gift tax reporting.
Superfunding
An individual can front-load five years of gifts at once—up to $95,000 individually or $190,000 jointly—provided no further gifts are made by that specific donor to that beneficiary for five years.
Lifetime Plan Caps
Contribution limits vary by state. For example, New York caps the maximum aggregate balance per beneficiary at $520,000.
Once the cap is reached, no new contributions are allowed from any source, although the account may continue growing through investment returns.
Solving the Appreciated Stock Dilemma
Since you cannot transfer appreciated stock directly into a 529 plan, you have two primary pathways to consider, each with its own tax trade-offs.
Strategy 1: Liquidate and Gift
You can sell the stock, pay any applicable capital gains tax, and contribute the cash proceeds to the 529 plan.
While this approach may create an immediate tax liability, it is often the simplest and most straightforward option. Once the cash is contributed, future growth inside the 529 plan can compound tax-free, and qualified withdrawals for education expenses can also be taken tax-free.
Optimization Strategy: If the stock has appreciated, you may be able to reduce the tax impact by harvesting capital losses elsewhere in your portfolio to offset some or all of the gains recognized on the sale. In certain situations, it may also make sense to spread stock sales over multiple tax years to help manage the overall tax burden.
Although paying capital gains taxes upfront may seem undesirable, it can be worthwhile when weighed against the long-term tax benefits and flexibility that a 529 plan provides.
Strategy 2: Gift Stock Through a Custodial Account
You can gift the stock to a custodial account in your grandchild’s name. Your grandchild assumes your original cost basis, and the stock can later be sold to help fund the 529 plan.
However, there is an important tax consideration.
Many families assume that because the stock now belongs to the grandchild, any capital gains will automatically be taxed at the grandchild’s lower tax rate. In some cases, that is true. However, the IRS has established “Kiddie Tax” rules to prevent families from shifting investment income to children solely to take advantage of lower tax brackets.
As a result, if your grandchild is under age 18 (or under age 24 and a full-time student) and realizes more than $2,700 of unearned income, such as dividends, interest, or capital gains, a portion of that income may be taxed at their parents’ higher marginal tax rate instead of the child’s rate.
There is an important exception for grandchildren who are 18 or are full-time students between the ages of 19 and 23. If they file their own tax return and provide more than 50% of their own financial support specifically through their own earned income, such as wages or self-employment income, they may avoid the Kiddie Tax and instead use their own individual tax rate, which can be as low as 0% for long-term capital gains.
If they do not meet this earned-income support test, you may need to wait until the Kiddie Tax rules no longer apply—generally age 19 for non-students or age 24 for full-time students—before selling the stock.
What Counts as a Qualified Withdrawal?
Funds can be used at qualified colleges, universities, graduate schools, technical and trade schools, and registered apprenticeship programs.
Higher Education & Trade Schools
Qualified expenses include:
Tuition
Mandatory fees
Books
Supplies
Equipment
Computers and internet access used by the beneficiary for educational purposes
Room & Board
Room and board expenses qualify only if the student is enrolled at least half-time and are generally capped at the school’s published cost-of-attendance figures.
Apprenticeships
Qualified expenses include fees, textbooks, and equipment required for participation in a U.S. Department of Labor registered apprenticeship program.
K-12 Tuition
At the federal level, up to $20,000 per year per beneficiary may be used for elementary or secondary public, private, or religious school tuition.
However, New York State treats K-12 tuition withdrawals as nonqualified distributions for New York State tax purposes.
Student Loans
Up to a $10,000 lifetime maximum per beneficiary may be used to repay qualified student loans.
Adjusted Qualified Education Expenses (AQEE) are calculated as total qualified education expenses minus any tax-free educational assistance received.
You can only take tax-free withdrawals up to the final AQEE amount. Any withdrawal exceeding AQEE is considered nonqualified, and the earnings portion of the withdrawal is subject to ordinary income tax plus a 10% penalty.
New York State Tax Deduction
Contributions to a New York State 529 plan may help lower your tax bill.
New York taxpayers may deduct:
Up to $5,000 for individual filers
Up to $10,000 for married couples filing jointly
Certain limitations may apply depending on each individual’s situation.
Leftover Funds & “What-If” Scenarios
If a beneficiary receives a full scholarship, chooses not to attend college or trade school, or simply has money remaining in the account, the funds are not lost.
Scholarship Exception
You may withdraw an amount equal to the scholarship penalty-free. However, ordinary income tax will still apply to the earnings portion of the withdrawal.
Beneficiary Change
You can change the beneficiary to another qualifying family member, including children, siblings, cousins, spouses, and others.
Maintain the Account
If the beneficiary plans to pursue future education, the funds can remain invested and available for future qualified expenses.
Roth IRA Rollover
If the 529 account has been open for at least 15 years, leftover funds may be rolled directly into the beneficiary’s Roth IRA.
This strategy is subject to:
A $35,000 lifetime rollover limit
Annual Roth IRA contribution limits ($7,500 for 2026, or $8,600 if the beneficiary is age 50 or older)
Take a Nonqualified Withdrawal
You may withdraw funds for nonqualified purposes, but the earnings portion may be subject to:
Federal and state income taxes
A 10% penalty tax
The original after-tax contributions are treated as a return of capital and are generally not taxable.
Key Takeaways
The Ultimate College Safety Net
529 plans are one of the most effective tools for building a dedicated education fund and helping students graduate without the burden of significant student loan debt.
The Triple-Tax Advantage
Tax-Deferred Growth
Investments compound tax-free while inside the account.
Tax-Free Withdrawals
Qualified withdrawals are free from federal income tax and, in most cases, state income tax.
State Tax Benefits
Many states offer an upfront state income tax deduction or tax credit for contributions.
Significant Flexibility
If the original beneficiary decides not to pursue higher education, you are not locked into one outcome. The beneficiary can be changed to another qualifying family member without triggering taxes or penalties.
No More “Use-It-or-Lose-It” Concerns
Recent tax law changes allow a lifetime limit of up to $35,000 of unused 529 assets to be rolled into a Roth IRA for the beneficiary, potentially giving them a meaningful head start on retirement savings.
If you have questions or need help setting up a 529, don’t hesitate to reach out by either scheduling a call using the button below or emailing us directly at connect@noteadvisor.com.
Andrew Lemay, CPA, MBA, is a Tax & Financial Planning Associate at Note Advisors. He works closely with the firm’s CERTIFIED FINANCIAL PLANNER® professionals to help clients align tax strategy, preparation, and compliance with their broader financial goals. As he works toward earning his CFP® certification, Andrew is committed to delivering the integrated planning experience that is central to Note Advisors’ approach. Connect with him on LinkedIn.
No portion of this commentary is to be construed as the provision of personalized investment, tax or legal advice. Please consult with the appropriate professionals for advice that is specific to your situation. Note Advisors, LLC can assist in determining a suitable investment approach for a given individual, which may or may not closely resemble the strategies outlined herein.
I recently attended an informative webinar through Kitces.com covering the newly introduced Section 530A “Trump Accounts,” and I wanted to share some key insights because there have already been a lot of questions surrounding who can open these accounts, how they work, and whether they may create planning opportunities for families.
Authorized under the One Big Beautiful Bill Act (OBBBA), Section 530A accounts introduce a brand new tax-advantaged investment vehicle for minors. At their core, they function like an early start retirement account, designed to give children the opportunity to benefit from decades of tax-deferred compounding growth.
While the legislation is still very new and additional guidance will likely continue to emerge, there are several important takeaways worth understanding now.
Who is Eligible and How to Open an Account?
Any U.S. citizen under the age of 18 with a valid Social Security number is eligible for a Section 530A account.
A parent and/or legal guardian, adult sibling, or grandparent, in that order of priority, can establish the account beginning July 4, 2026, through either:
IRS Form 4547, filed concurrently with your federal income tax return.
Understanding the Growth Period
From the time the account is opened until the end of the year before the child turns 18, the account enters what’s called the “Growth Period.”
During this phase:
Assets grow tax-deferred
Distributions are generally prohibited
Investments are limited to broad U.S. equity index mutual funds or ETFs with expense ratios capped at 0.1% annually.
The goal appears to be keeping these accounts relatively simple, low cost, and focused on long-term growth.
The 4 Ways These Accounts Can Be Funded
One of the more interesting aspects of the legislation is the flexibility around contributions.
1. Direct After-Tax Contributions
Parents, grandparents, family members, friends, or even the child themselves can contribute cash directly to the account.
Annual contribution limit: $5,000
Contributions are after tax
No tax deduction is received
2. Employer Contributions
Employers can voluntarily contribute up to $2,500 annually to either:
An employee’s account, or
Their dependent’s account
These contributions are excluded from the employee’s gross income under Section 128, though they still count toward the $5,000 annual limit.
3. The $1,000 Federal Pilot Program
One of the most discussed provisions is the government-funded pilot program contribution.
Children born between January 1, 2025 and December 31, 2028 qualify for a one-time $1,000 contribution funded directly by the U.S. Treasury.
Importantly:
This does not count toward the $5,000 annual contribution limit
Families must actively elect the contribution through Form 4547 or the online portal
For young families, this may represent a meaningful opportunity to begin investing early.
4. Qualified General Contributions
Approved charitable or government organizations can inject large-scale capital aimed at broad geographic or age-based classes of beneficiaries.
These do not count toward the $5,000 annual contribution limit
The Power of Starting Early
Even relatively small amounts invested early can potentially become substantial over time because of compound growth. Section 530A accounts are uniquely designed to maximize this compounding effect, as these accounts are established for minors and the initial investments have nearly two decades to grow.
What Happens at Age 18?
Once the beneficiary turns 18, control of the account transfers entirely to them, and the account essentially adopts the rules of a Traditional IRA.
At that point, they generally have four options:
Maintain the Account
Keep the account invested and continue allowing it to grow tax-deferred.
Roll It Into a Traditional IRA
Transfer the balance into a Traditional IRA without penalty and continue deferring taxes until retirement distributions begin.
Convert to a Roth IRA
Potentially one of the more powerful planning opportunities.
The beneficiary can convert the account into a Roth IRA without a 10% penalty, though income taxes would still apply at the time of conversion to the non-basis portion of the account, including:
Employer contributions
Government pilot contributions
Qualified General Contributions
Investment growth
Because many 18-year-olds are often in relatively low tax brackets, this could create an opportunity for lower-cost Roth conversions early in life.
That said, families will want to pay close attention to Kiddie Tax rules, since large conversions could potentially trigger taxation at the parents’ higher marginal tax rates.
Take a Distribution
The beneficiary can also withdraw funds directly.
Original direct after-tax contributions are considered a return of your basis and are tax-free
Growth, employer, charitable, and government contributions are taxable as ordinary income
Withdrawals before age 59½ may also trigger a 10% early withdrawal penalty unless an IRA exception applies
The Biggest Planning Consideration May Not Be Taxes
One of the more interesting discussion points from the webinar had less to do with taxes and more to do with behavior.
At age 18, the beneficiary legally gains control of the account.
For some families, that may prompt an important conversation about financial education and long-term decision-making.
An 18-year-old may understandably feel tempted to cash out funds for short-term wants, especially if they don’t fully understand the long-term value of compounding.
That makes financial literacy and ongoing education incredibly important.
Because ultimately, the real power of these accounts is not necessarily the initial contribution itself. It’s the time horizon attached to it.
We’ll continue monitoring guidance and developments surrounding Section 530A accounts and helping families evaluate how they may fit into a broader long-term financial plan. If you have questions, don’t hesitate to reach out by either scheduling a call using the button below or emailing us directly at connect@noteadvisor.com.
Andrew Lemay, CPA, MBA, is a Tax & Financial Planning Associate at Note Advisors. He works closely with the firm’s CERTIFIED FINANCIAL PLANNER® professionals to help clients align tax strategy, preparation, and compliance with their broader financial goals. As he works toward earning his CFP® certification, Andrew is committed to delivering the integrated planning experience that is central to Note Advisors’ approach. Connect with him on LinkedIn.
No portion of this commentary is to be construed as the provision of personalized investment, tax or legal advice. Please consult with the appropriate professionals for advice that is specific to your situation. Note Advisors, LLC can assist in determining a suitable investment approach for a given individual, which may or may not closely resemble the strategies outlined herein
There’s a shift happening in the way families think about wealth.
For previous generations, estate planning often meant one thing: deciding what happens to your money after you’re gone. Conversations about wealth were private. Children didn’t know much about the finances, and many families simply planned to “figure it out later.”
But today, more families are asking a different question:
What kind of impact do we want our wealth to have while we’re still here to experience it?
At Note Advisors, we’ve seen some of the most meaningful financial planning conversations happen not around numbers or investment returns, but around family, values, generosity, and legacy.
Because in many cases, the most important part of a financial plan has very little to do with spreadsheets.
Legacy Is About More Than Money
True legacy is much bigger than the transfer of assets.
It’s the values you pass down. The conversations you have. The opportunities you create for your children and grandchildren. The memories your family carries forward long after the money itself is gone.
One of the most common things we hear from clients is:
“I want to see my kids and grandkids enjoy this while I’m alive.”
That mindset changes the conversation entirely.
Instead of simply asking, “How much can we leave behind?” families begin asking:
How can we help our children now?
What experiences matter most to us?
What values do we want future generations to carry forward?
How do we use wealth intentionally?
Those are legacy conversations.
The Power of Open Family Conversations
For many families, money was once a topic that stayed behind closed doors.
Parents often believed their adult children shouldn’t know anything about the family finances until after they passed away. While the intention may have been good, the result was often confusion, stress, and uncertainty for the next generation.
Today, we’re seeing more families embrace openness.
Not in a way that creates entitlement, but in a way that creates understanding.
When families communicate intentionally about wealth, they create clarity around:
family values
charitable priorities
financial responsibility
long-term intentions
stewardship across generations
And perhaps most importantly, those conversations can strengthen relationships.
A Different Way to Think About Charitable Giving
One of the most meaningful examples we’ve seen in the families we work with involves charitable giving.
Many families establish charitable accounts or donor-advised funds because of the tax benefits. And while those benefits can certainly be valuable, the real opportunity often goes much deeper.
We encourage families to use charitable giving as a teaching tool.
One client began involving his children and grandchildren in deciding which charities the family would support each year. At Thanksgiving, each member of the family had the opportunity to share a cause that mattered to them.
What started as a financial strategy became something much more meaningful: a family tradition rooted in shared values and generosity.
The tax deduction became secondary.
The real impact was the conversation itself.
Giving While Living
Another trend we continue to see is parents and grandparents choosing to support younger generations earlier in life rather than waiting decades to pass wealth down.
That might mean:
helping with a first home purchase
contributing toward education
funding family experiences
supporting entrepreneurship
gifting strategically as part of a larger estate plan
And interestingly, many adult children initially respond the same way:
“We don’t want the money. We want mom and dad to enjoy it.”
But for many parents, these gifts are part of the enjoyment.
It’s a way to witness the impact of their life’s work firsthand.
To see their children build stable lives. To watch grandchildren create memories. To experience the joy of helping others while they’re still here to share in it.
The Math Answer vs. The Right Answer
Financial planning often involves technical decisions: taxes, investment strategies, withdrawal rates, and estate structures.
Those things matter.
But there are moments when the “best” mathematical answer may not fully capture what matters most to a family.
Sometimes a client chooses to spend money on a meaningful trip tied to a loved one’s memory. Sometimes parents decide to help children earlier than a spreadsheet would recommend. Sometimes generosity, family connection, or purpose outweigh pure optimization.
As we often say:
There’s the math answer, and then there’s the right answer. Sometimes those are the same. Many times they’re not.
Holistic financial planning should factor in both.
Wealth as a Tool for Purpose
At its best, wealth is not simply about accumulation.
It’s about alignment.
Alignment between your money and your values. Between your resources and your relationships. Between your financial plan and the life you want your family to experience together.
The families who navigate legacy most successfully are rarely the ones focused only on preserving wealth.
They’re the ones focused on using it intentionally.
Because the greatest legacy often isn’t the money itself.
It’s the impact that money has on the people you love.
If you’d like to have a conversation about your own legacy, schedule a call with one of our Certified Financial Planners (CFP®) to see if we are the right fit.
How to Prepare for Aging Family Members, End-of-Life Planning, and the Financial Decisions No One Talks About
As an advisor and retirement plan specialist, one of the most rewarding parts of my career is building relationships with clients that span decades. I’ve had the privilege of walking with people through various stages of life — helping them prepare for retirement, guiding them into it, and planning for their legacy.
As a result, I’m working with aging clients who are experiencing signs of cognitive decline. These conversations can be tender and challenging. On my end of the phone, I often find myself answering the same questions multiple times, sensing changes in communication, and noticing shifts in behavior that weren’t there before.
Over time, the pattern becomes problematic, and we need to ask a member of the client’s family to step in and help.
What Is Financial Caregiving?
Financial caregiving happens when a family member steps in to manage money, decisions, and logistics for a loved one experiencing cognitive decline, aging-related challenges, or end-of-life transitions.
For many people, this role isn’t planned. It’s sudden, emotional, and often without a clear roadmap.
The Financial Responsibilities Families Face
When a loved one begins to decline, financial complexity increases quickly.
Families are often left managing:
Bank and investment accounts
Bill payments and cash flow
Insurance and healthcare expenses
Estate planning documents
Protection against fraud or scams
Meetings with advisors, attorneys, and CPAs
If there isn’t a plan in place, these responsibilities can feel overwhelming, especially for those just stepping in for the first time.
The Emotional Reality of Caring for Loved Ones
Financial caregiving isn’t just about managing money. It’s about navigating one of the most emotionally difficult stages of life.
We often see:
Adult children stepping into unfamiliar roles
Spouses taking over responsibilities they’ve never handled
Families making decisions while processing grief and uncertainty
The hardest part? These decisions don’t wait until you’re ready. They happen while you’re supporting a parent through cognitive decline, managing affairs after a loss, or helping a spouse through an illness.
Why Financial Planning for Cognitive Decline Matters
Most people think of financial planning in terms of retirement or investments, but one of its most important roles is preparing for what happens when you can no longer manage things on your own.
Proper planning can help ensure:
Power of attorney documents are in place
Accounts are organized and accessible
Beneficiaries are up to date
Income and expenses are clearly mapped out
Family members know who to call and what to do
Without this preparation, families are often left trying to piece everything together under pressure.
Common Mistakes Families Make
When planning hasn’t been done ahead of time, we often see:
No clear financial point person
Missing or outdated legal documents
Disorganized accounts across multiple institutions
Increased vulnerability to scams or poor decisions
Family tension due to unclear roles or expectations
These aren’t failures. They’re simply the result of conversations that never happened.
The Value of Having an Advisor in Your Corner
One of the biggest challenges during this stage is not just the complexity. It’s the feeling of being alone in it. Having a trusted financial advisor can help families:
Coordinate accounts and financial decisions
Guide conversations between family members
Work alongside attorneys and CPAs so everyone is on the same page
Provide clarity during emotionally difficult moments
Reduce the burden placed on a single caregiver
Because in these moments, families need guidance.
If you’re thinking about aging parents or your own future, reach out for help to ensure you have a plan in place.
Angela M. Hall, Ph.D., CFP®, is Note’s Senior Financial Advisor and head of the Retirement Planning division at Note Advisors. As a Certified Financial Planner®, her mission is to guide you in achieving your most ambitious life and business vision by developing and maintaining custom wealth and retirement plan strategies. Connect with her on LinkedIn
Through your 401(k), you have one of the most powerful tools available to reduce taxes, build personal wealth, and create flexibility outside of your business. This webinar will show you how to think about that plan more strategically as part of a much bigger picture.
Join Angela Hall, CFP® from Note Advisors, for an educational webinar to show you how to think about your 401(k) plan more strategically as part of a much bigger picture. This webinar is designed for business owners looking for smart strategies to exit rich and retire secure.
What We’ll Cover:
Why your business shouldn’t be your only retirement plan
How to turn business profits into personal, tax-efficient wealth
Strategies to reduce taxes through smart retirement planning
How to align retirement planning with your succession strategy
Debt isn’t inherently good or bad. It’s a tool, and like any tool, it depends on how you use it.
“I don’t want any debt and want to pay off my loans as quickly as possible.”
That’s how the conversation started.
We recently built a financial plan for a younger couple with dual income, no kids, and who were in a very strong financial position. From the start, it was clear they saw debt as something that needed to be eliminated as quickly as possible. It was one of the main reasons they wanted to meet.
For many people, debt feels heavy. In their words, it was “something hanging over them.”
It’s a very real and understandable mindset. At the same time, they were missing an important part of the bigger picture.
Debt is a Two-Sided Coin
Not all debt is created equal.
There’s the kind that works against you, such as high-interest credit cards, for example, where the cost of borrowing can quietly erode your progress.
And then there’s debt that can actually work for you, such as a mortgage, a business loan, or even strategically managed low-interest debt.
Some of the wealthiest individuals and families carry significant amounts of debt. Not because they have to, but because they strategically choose to.
They understand something important that some people tend to miss.
If your money can earn more elsewhere than your debt costs, while still staying accessible, aggressively paying it off may not be the most effective strategy in terms of the numbers.
But you also have to consider the other side of the coin—not just the math, but how it fits into your overall plan and priorities.
The Bucket Philosophy
One way I like to simplify this is what I call the bucket philosophy.
Think of your financial life as a series of buckets. Each one represents a different place your money can go—retirement accounts, investment accounts, savings, or paying down debt.
The question becomes: Which buckets are giving you the best return?
If you have money left over each month, it may make sense to first fill the buckets that are working hardest for you.
For example:
Contributing to your 401(k) or 403(b), especially if there’s an employer match
Funding a Roth IRA, where growth can be tax-free
Investing in accounts that have long-term growth potential
These buckets have the ability to compound over time in a way that debt repayment simply doesn’t.
Once those higher-opportunity buckets are being filled, that’s when you shift focus.
Now it may make more sense to accelerate paying down debt, especially if it’s higher interest or no longer serving a strategic purpose.
This isn’t about ignoring debt, but about putting it in the right place within the bigger picture of your financial plan, making your money work more efficiently for you.
It’s Not Just Math. It’s Behavior
There’s an important layer to all of this.
Even if the math says one thing, your comfort level matters.
If having debt keeps you up at night, that’s real. And part of good planning is balancing both the numbers and how you feel about them.
But what I’ve found is that many people have been conditioned to view all debt the same way without ever stepping back to ask:
“Is this debt actually holding me back… or could it be part of a more strategic strategy?”
A Different Way to Think About It
The goal isn’t to carry debt for the sake of it. The goal is to be intentional.
To understand:
What your money is doing
Where it’s working hardest
And how each decision fits into your long-term plan
Because sometimes, the fastest path forward isn’t about eliminating debt as quickly as possible, but about making sure your money is positioned in the places that can do the most for you over time.
TJ Conway, CFP® APMA™ is a Financial Advisor and Retirement Planning Associate at Note Advisors. As a Certified Financial Planner® and Accredited Portfolio Management Advisor℠ (APMA®), TJ is committed to providing client-focused, high-quality financial advice. Connect with him on LinkedIn or Schedule an Introductory Call
If you’re searching for a financial advisor, you’ve likely come across terms like fiduciary, suitability, RIA, and CFP® professional.
These aren’t just industry jargon. They directly impact the kind of advice you receive.
Understanding the difference between the fiduciary standard vs. suitability standard can help you choose an advisor who truly aligns with your best interests.
What Is a Fiduciary Financial Advisor?
A fiduciary financial advisor is legally required to act in your best interest at all times.
This standard applies to Registered Investment Advisors (RIAs) and certain financial professionals.
Key characteristics of a fiduciary:
Must put the client’s interests ahead of their own
Required to provide full transparency on fees and conflicts
Must act with care, prudence, and diligence
Obligated to avoid or properly manage conflicts of interest
In short, a fiduciary is held to the highest standard of care in the financial industry.
What Is the Suitability Standard?
The suitability standard is a lower standard that applies to many brokers and financial sales professionals.
Under this model:
Recommendations must be suitable based on your situation
They are not required to be the best option available
Advisors may recommend products that pay them higher commissions
The responsibility often falls on the client to identify poor advice
This means a recommendation can meet the standard even if a better, lower-cost, or more appropriate option exists.
Fiduciary vs. Suitability: Key Differences
Fiduciary Standard
Suitability Standard
Must act in your best interest
Must provide suitable recommendations
Full fee and conflict transparency
Limited disclosure requirements
Ongoing duty of care
Transaction-based relationship
Conflict management required
Conflicts may exist without full alignment
Higher legal accountability
Lower legal obligation
Why the Fiduciary Standard Matters
Choosing a fiduciary financial advisor can lead to:
More objective advice
Greater transparency around costs
Fewer conflicts of interest
A more comprehensive financial plan
For investors, this often translates into clearer guidance and greater confidence in decision-making.
What Is an RIA (Registered Investment Advisor)?
A Registered Investment Advisor (RIA) is a firm that operates under the fiduciary standard.
RIA firms are required to:
Act in the client’s best interest
Disclose how they are compensated
Provide ongoing advice and portfolio oversight
If you’re looking for a fiduciary advisor, working with an RIA is a strong place to start.
What Does CFP® Certification Mean?
A Certified Financial Planner (CFP®) professional is someone who has met rigorous standards in:
Financial planning education
Examination and technical knowledge
Ethics and professional conduct
Importantly, CFP® professionals are also held to a fiduciary standard when providing financial advice.
How to Choose the Right Financial Advisor
When evaluating advisors, ask these key questions:
Are you a fiduciary at all times?
How are you compensated (fees vs. commissions)?
Do you provide comprehensive financial planning or just investment advice?
Are you a CFP®?
These answers will help you understand how advice is delivered and whether it aligns with your goals.
Our Approach at Note Advisors
At Note Advisors, we are a Registered Investment Advisor (RIA) and operate under a fiduciary standard.
Our approach includes:
Putting your interests first. Always
Transparent and fee-based advisement
Delivering holistic financial planning, not just investment recommendations
Our team includes Certified Financial Planner® professionals who are committed to helping you make thoughtful, informed decisions about your financial future.
Final Thoughts: Why This Distinction Matters
Not all financial advisors operate under the same rules.
Understanding the difference between fiduciary vs. suitability can help you:
Avoid conflicts of interest
Ask better questions
Choose an advisor you can trust
Because when it comes to your financial future, the standard your advisor follows matters more than most people realize.
If you want to learn more, schedule an introductory call with one of our Certified Financial Planners (CFP®) to see if we are the right fit.
Beginning this year, higher-earning participants may be required to make catch-up contributions on a Roth (after-tax) basis. Roth catch-up contributions are taxed now but grow tax-free, giving participants a different way to plan their retirement tax strategy.
Join Angela Hall, CFP® from Note Advisors, for an educational webinar to talk about these 2026 catch-up contribution changes. This webinar is designed for business owners, HR professionals, plan sponsors, and individuals who want a clearer understanding of how these changes may affect retirement planning and plan administration.
What We’ll Cover:
What catch-up contributions are and what’s changing in 2026
New Roth catch-up contribution requirements for higher earners
Expanded “super” catch-up contributions for individuals ages 60–63
Saving for retirement is getting a boost in 2026, especially for older workers. New IRS rules are expanding catch-up contribution opportunities while also introducing important changes around Roth catch-up contributions.
Whether you’re a plan sponsor or a participant, understanding these updates can help you make smarter retirement planning decisions and avoid surprises.
What Are Catch-Up Contributions?
Catch-up contributions allow participants age 50 and older to contribute more to employer-sponsored retirement plans—such as a 401(k), 403(b), or 457(b)—beyond the standard annual limit.
These contributions are designed to help individuals who:
Started saving later in their careers
Took time away from the workforce
Want to accelerate retirement savings as retirement approaches
For 2026, catch-up contribution limits have been adjusted for inflation and expanded for certain age groups.
Roth Catch-Up Contributions: A Major Change in 2026
One of the most impactful updates affects how catch-up contributions are taxed for higher earners.
Beginning January 1, 2026:
Participants with prior-year FICA wages from the same employer above the IRS threshold (approximately $150,000 for 2026) must make catch-up contributions as Roth (after-tax) contributions
Participants earning below the threshold may continue to choose between pre-tax or Roth catch-up contributions, depending on their plan’s provisions
Why Roth Catch-Up Contributions Matter
Roth contributions are taxed today but grow tax-free, and qualified withdrawals in retirement are also tax-free. While Roth contributions may reduce current take-home pay, they can provide meaningful tax flexibility in retirement, especially for participants who expect higher future tax rates.
Super Catch-Up Contributions for Ages 60–63
For workers nearing retirement, the IRS has introduced an enhanced saving opportunity known as the “super” catch-up contribution.
In 2026:
Participants aged 60, 61, 62, or 63 may contribute up to $11,250 in catch-up contributions
This is higher than the standard catch-up limit of $8,000 for participants age 50 and older
These expanded limits are designed to help late-career employees take advantage of peak earning years and close potential retirement savings gaps.
What These Catch-Up Contribution Changes Mean for Employers
The 2026 catch-up contribution rules affect more than just participants. They also create new administrative considerations for plan sponsors.
Employers should:
Review plan documents to confirm whether Roth and super catch-up contributions are permitted
Coordinate with payroll providers and recordkeepers to ensure systems can apply Roth requirements correctly
Communicate these changes clearly so participants understand their options and potential tax impact
Final Thoughts on Catch-Up Contributions in 2026
Catch-up contributions have long been a powerful retirement planning tool, and the 2026 updates make them even more impactful, especially for workers approaching retirement. At the same time, new Roth requirements add complexity, making education and planning more important than ever.
If you have questions about how catch-up contribution changes affect your retirement plan or personal savings strategy, let’s connect.
Angela M. Hall, Ph.D., CFP® is Note’s Senior Financial Advisor and head of the Retirement Planning division at Note Advisors. Angela works closely with business owners who need retirement plan options for their employees. As a Certified Financial Planner®, her mission is to guide you in achieving your most ambitious life and business vision by developing and maintaining custom wealth and retirement plan strategies. Connect with her on LinkedIn
