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Vol. 80, No. 3, May 2026

FEATURED ARTICLES

The Evolution of Lifetime Income Benefits in Defined Contribution Plans: An Optimistic Trend
Barry Kozak, JD, LLM, MPP
Benefits accrued in an employer-sponsored defined benefit plan are assumed to be paid out to the retiree as lifetime income and benefits accrued in an employer-sponsored defined contribution plan are assumed to represent an endowment that the retiree can draw down as needed. However, two trends are changing the traditional understanding: the endowment-ification of defined benefit plans and the fixed-income-ification of defined contribution. This article will explain the arcs of these trends so that financial service professionals can better assist their clients in optimizing their retirement benefit options as they consider their retirement budgets.

Using 401(k) Contributions with Roth Conversions instead of Roth Contributions to Fund Special Needs Planning
Lewis Hershey, MA, PhD
This article explores the use of the "401(k) + conversion" strategy to help fund retirement and special needs planning (SNP) needs. For older clients, provisions for both "catch up" contributions and possible in-service distributions for 401(k)s when combined with Roth conversions options can provide greater funding for both retirement and SNP than traditional Roth contributions alone. A key change is that catch up contributions for 401(k)s must now be taken as a Roth, even if the client’s income makes them ineligible to contribute to a Roth otherwise. Such changes to the 401(k) contribution provisions effective in 2026 provide financial planners with opportunities to explain how these evolving differences in retirement planning provide enhanced tools to meet the needs of both their clients’ retirement and their SNP concerns.

Revisiting the 10-Percent Penalty Exceptions for Retirement Plans
Kenn Beam Tacchino, JD, LLM
There is a penalty tax that applies to premature retirement distributions, which is intended to discourage clients from using their retirement plans as an ATM while still working. However, the additional 10 percent tax does not apply to a variety of withdrawals that are protected by a plethora of statutory exceptions. In order to more effectively advise clients, planners need to have a working knowledge of the exclusions that are available. Since recent legislation has added a variety of new exemptions, this is an opportune time to review the Code Section 72(t) penalty

DEPARTMENTS

Editor’s View
Celebrating 80 Years of the Journal of Financial Service Professionals
Kenn Beam Tacchino, JD, LLM
Our 80th anniversary is cause for a reflection about the purpose of the oldest financial planning Journal in America. It is also a good time to review the process involved in creating the Journal content. Finally, information is only useful if it can be understood and applied by those who receive it. For this reason, this Journal is mindful that the information presented must be pertinent to your career and we want readers to regard the topics and the level of the material presented as having applicability to your professional lives.

Accounting and Taxation
Health Savings Account Eligibility Expansion under the One Big Beautiful Bill
Bill Harden, CPA, ChFC, PhD
This column examines the significant expansion of Health Savings Account (HSA) eligibility under the One Big Beautiful Bill Act (OB3) and subsequent IRS Notice 2026-5. While HSAs offer a unique triple tax benefit, strict "eligible individual" rules limit their utility. The author analyzes three key regulatory shifts: the deductible exception for telehealth services, the qualification of bronze and catastrophic exchange plans as High-Deductible Health Plans (HDHPs), and the integration of Direct Primary Care Service Arrangements (DPCSAs). By detailing compliance requirements and reimbursement mechanics, this column provides essential guidance for professionals advising clients on modern healthcare tax planning.

Executive Compensation
Understanding the Benefits, Risks and Mechanics of a Section 83(b) Election
Paul J. Schneider, JD, LLM
This column provides practical guidance on Section 83(b) elections, focusing on their implications for the taxation of property transferred for services. Section 83 governs the taxation of property transferred in connection with services. Typically, income is recognized when property vests, but a Section 83(b) election allows for earlier income recognition at the time of transfer. This election can be beneficial when property value is low at grant, as it locks in ordinary income at that lower value and converts future appreciation into capital gains. Understanding the intricacies of the Section 83(b) election can help taxpayers make informed decisions about their equity compensation and potential tax liabilities.

Entrepreneurship
How Financial Planners Can Help Small Business Clients Conduct Effective Market Research
Kevin Tacchino, MSTFP
Entrepreneurial ventures introduce a layer of uncertainty that traditional financial planning models are not always designed to absorb. Given that environment, market research serves as more than background context and is a stabilizing force within the planning process. For financial planners, the objective is not to become market researchers or industry analysts. Rather, it is to ensure that assumptions embedded in a client’s projections are grounded in observable data, aligned with industry realities, and logically connected to the broader financial plan.

Financial Gerontology
Wealthspan Planning: Guiding Principles for Advising, Accumulation, and Expenditure
John Migliaccio, PhD, RFG, FGSA
We examine how financial gerontology’s founding experts charted a pathway that continues to benefit financial service professionals, their clients, and generations to come. Understanding of and tools for creating understanding, expertise, and approaches that assist in the long term relationships between advisor and client remain part of that legacy.

Guest Column – Special Needs Planning
Medical Capital Improvements and Their Financing: Leveraging the Medical Expense and Home Equity Interest Expense Deduction for Families Caring for Those with Special Needs
Thomas M. Brinker Jr., CPA/PFS, CGMA, JD, LLM, ChFC, ChSNC, CFE, AEP
Parents caring for those with special needs are often unaware of the substantial tax benefits available to them and often forego hundreds, if not thousands, of potential tax deductions and reductions in their tax liability. Medical care expenditures alone for a child with special needs can prove astronomical. As a result, parents and their advisors need to become familiar with some unusual Internal Revenue Code provisions that may assist and/or hinder in this process.

Long-Term Care Insurance
The Long and Short of It
Ronald Hagelman, Jr., CLTC, CSA, LTCP
This article examines the shifting landscape of long-term care insurance (LTCI) amidst rising claims and premiums. While traditional Tax-Qualified policies face sustainability challenges, the author highlights a growing middle market gap. The narrative advocates for short-term care (STC) insurance as a flexible, affordable alternative. By offering streamlined underwriting and immediate benefits, STC provides families with the critical time to think and financial protection necessary to navigate the complexities of elder care.

Practice Management
A Fresh Look at Small Business Retirement Plans
Douglas B. Richards, JD, MBA, CLU, CFP
The information presented in this column will aid the financial service professional seeking to become more familiar with the small business retirement plan market. The financial service professional should feel more confident in encouraging small business owners who have yet to adopt a retirement plan to consider sponsoring a SIMPLE IRA or a SEP IRA.