Tax Season and the Many Years Beyond

• Roth Catch-up Contributions: What Changed This Year

• Reminder on Tax Form Dates

• The “6-Figure” Decision for Your Later Years - Continuing Care Retirement Communities

Roth Catch-Up Contributions: What Changed This Year

If you're over 50 and earning more than $150,000, there's a new rule in town for your workplace retirement plan. As part of the SECURE Act 2.0, a provision that was originally passed back in 2022 has now officially taken effect in 2026: if your prior-year FICA wages exceeded $150,000, any catch-up contributions you make to your 401(k), 403(b), or 457(b) must go into a Roth account.

To be clear—this doesn't eliminate your ability to make catch-up contributions. You can still put in that extra money. It simply means those dollars now go in after-tax, into the Roth side of your plan. The silver lining? Those contributions along with their future growth come out tax-free in retirement. For many of you, this is actually a good thing, even if it doesn't feel like it on this year's tax return.

We've already updated our advice to reflect this change, so if this applies to you, it should be seamless on your end. That said, if you have questions about how this interacts with your broader tax picture or retirement income strategy, don't hesitate to reach out. This is exactly the kind of detail we love to help you think through.

Reminder on Tax Form Dates

Your tax forms may still be on the way. Here’s what to expect if you haven’t gotten all of your documents yet:

· 1099-Consolidated Forms: These include 1099-DIV, 1099-B, 1099-INT, 1099-OID, and 1099-MISC. Forms will be released to your Altruist Client Portal in three waves based on the complexity of your financial portfolio: 

o  Wave 1: On January 31 - Most tax documents came already

o  Wave 2: On February 16 - More came here

o  Wave 3: On March 16 - This is the final batch!

· Correction runs: Starting March 17, corrections will be processed bi-weekly as needed. Clients with Mutual Funds, REITs, REMIC securities, or WHFITs may experience income reclassification, which could result in amended forms. This could affect their tax filings and deadlines.

Here’s a video to show you how to access those documents.

If you find that there are any corrections to these tax forms that are necessary, please let us know.  This is pretty rare, but we can help you address it if something is off.

The “6-Figure” Decision for Your Later Years - Continuing Care Retirement Communities

I want to take a few minutes to talk about a different kind of transition—one that often gets delayed until it’s too late.  Reaching retirement is a huge milestone but life doesn’t stop evolving there does it?  It is important to consider the next big transition that you may face.

We often hear clients say, “I’m just going to age in place,” or ask, “Is that retirement community really worth the cost?” These are valid questions, but we should look at this with a systematic framework in mind.

The reality is that choosing where to live in your 80s and 90s isn’t just a real estate decision—it’s a Housing and Care decision. And it’s one of the most significant financial and lifestyle choices you will make.

Here is a summary of the most critical points and what they mean for your financial plan.

Reframing the CCRC Decision

1. It’s Not Just About the BuildingWhen you choose a Continuing Care Retirement Community (CCRC) or "Life Plan Community," you aren’t just renting an apartment. You are effectively purchasing a bundled insurance policy for your future care (Assisted Living, Skilled Nursing, Memory Care). This ensures you have priority access to care if your health declines, rather than scrambling to find a facility during a crisis.

2. The "6-Figure" DecisionCCRCs often require a significant upfront entry fee (ranging from $100k to over $400k) plus monthly fees. While sticker shock is common, this fee often prepays for future medical care. It shifts the risk of rising healthcare costs from you to the community, depending on the contract type.

3. Know Your ABCs (Contract Types)Not all contracts are created equal. There are three main structures:

   • Type A (Life Care): Higher upfront/monthly fees, but your rate remains stable even if you move into skilled nursing.

   • Type B (Modified): Lower fees initially, but you pay market rates for care after a certain period.

   • Type C (Fee-for-Service): Lowest upfront cost, but you pay full market price for any future care.

4. The "Aging in Place" DefaultStaying in your current home is a valid choice, but it requires a plan. "Aging in place" often means becoming an employer of home-health aides and a project manager of your own care. A CCRC outsources these logistics.  To be successful here, you will need to consider several elements, which I will discuss separately below.

5. Timing is Everything (The Health Hurdle)Most top-tier CCRCs require you to be independent and relatively healthy to join. If you wait until a diagnosis arrives, you may be disqualified. The "sweet spot" for moving is often in your late 60s or early 70s—earlier than most people think.

6. Tax OpportunitiesA portion of your entrance fee and monthly fees may be deductible as a prepaid medical expense. This can be a massive tax planning opportunity in the year you move. Consult your tax advisor for these details.

7. Lifestyle & LongevityBeyond money, we need to consider the "loneliness epidemic." CCRCs provide built-in community, which is statistically linked to longer, healthier lives. The social component is just as important as the clinical one.

   
   

Aging in Place: What it Actually Takes:

Staying in your own home as care needs increase sounds simple, but it requires real planning.  Here are some of the key pieces that need to come together:  

• The home itself has to work. That means thinking about single-level living, grab bars, wider doorways, walk-in showers, and accessibility for walkers or wheelchairs. These modifications aren't always cheap, but they're a fraction of the cost of a facility.

• You need a care team and a plan to pay for them. In-home aides, skilled nursing visits,   physical therapy, and meal preparation add up quickly. Depending on your area, full-time in-home care can rival or exceed the cost of assisted living. Understanding how you'll fund this—through long-term care insurance, savings, or a hybrid policy—is critical.

• Someone has to coordinate it all. Medications, appointments, rotating caregivers, insurance claims.  This is a logistics operation on its own.  A geriatric care manager can be invaluable here, especially when adult children are juggling their own lives or live far away.

• Family dynamics matter more than people think. Who is the primary caregiver? What happens when they burn out? Having honest conversations early can prevent a lot of stress and conflict down the road. Don’t wait for a crisis to force this conversation.

• Legal documents need to be current and accessible. A durable power of attorney, healthcare directive, and HIPAA authorizations aren't optional. If something happens suddenly, the people who need to act on your behalf need the authority to do so.

• Isolation is the silent risk. Staying home can mean missing out on the built-in social interaction that facilities provide. See bullet number 7 above.

  
  

Your Action Items: What To Do Now

Whether you are 55 or 75, here is how we can apply this to your plan today:

• Start the Conversation Early: Don't wait for a health crisis to look at options. If you are considering a move, let’s discuss the liquidity needs for an entrance fee before you put your house on the market.

• Audit Your "Aging in Place" Plan: If you plan to stay home, do we have the budget for 24/7 in-home care if needed? (Current costs can exceed $15,000/month in some areas).

• Review the Contract: If you are looking at a specific community, bring the contract to us. We need to model the long-term cash flow correctly.

• Visit and "Test Drive": Visit communities now, even if you aren't ready. Eat the food, talk to residents, and see if the "vibe" matches your personality.

• Check the Financial Health: Just as we analyze a stock, we should analyze the       financial stability of the CCRC to ensure they can fulfill their lifetime promise to you.

Resources:

• The Medicare website has good information regarding what these different types of care provide.  You can find many useful guides here. They also have a provider search function here.  You may not need or want a Medicare approved facility, but they provide a good starting point for information.

• Another important consideration is accreditation. CARF is an independent, non-profit accreditor of health and human services. They essentially act as a watchdog for CCRCs.  Earning a CARF accreditation is completely voluntary, rigorous, and involves a deep dive into a community's financial health, resident care, and safety protocols. You can go to their website to learn more about their accreditation process and search for providers.

You don’t have to make these big decisions alone. Without knowing what your future holds for your health, it is best to start developing a plan so that you can at least outline your preferences.  Our goal is to ensure your plan reflects real choices, not just assumptions. If you or a parent are weighing these options, let’s schedule a time to run the numbers when you’ve got an idea of which provider you’re considering. I can help make sure it fits into your financial plan.