January is Financial Wellness Month, but at Vanguard we focus on financial wellness every month of the year. Here’s a preview of some of the services that we'll introduce and research that we'll publish this year.
Financial well-being
In the new year, we’ll continue to enhance our financial well-being program in ways that can help your participants prepare for a successful retirement.
Out-of-plan emergency savings
To help support participants seeking emergency savings, we plan to introduce an out-of-plan proprietary nonretirement savings vehicle, called Cash Plus, in the second half of 2024. Participants will be able to use a Cash Plus account to save for nonretirement goals, including—but not limited to—emergencies.
Cash Plus will give participants access to higher-yield savings and help them move money more easily. Look for more details later in the year.
Cash Plus will give participants access to higher-yield savings and help them move money more easily. Look for more details later in the year.
Award-winning advice*
The value of personalized advice
Vanguard advice provides personalized financial, portfolio, emotional, and time value for employees, supporting progress toward their goals and helping them build confidence. In 2024, we’ll turn our focus to measuring advice recommendations.
Vanguard advice provides personalized financial, portfolio, emotional, and time value for employees, supporting progress toward their goals and helping them build confidence. In 2024, we’ll turn our focus to measuring advice recommendations.
Target-date funds and advice
New research will analyze how both target-date funds (TDFs) and financial advice can support participant financial well-being. We’ll explore the value of personalization, how behavioral coaching and life events can affect investment glide paths, and considerations for financial planning.
New research will analyze how both target-date funds (TDFs) and financial advice can support participant financial well-being. We’ll explore the value of personalization, how behavioral coaching and life events can affect investment glide paths, and considerations for financial planning.
Industry-leading investments
Hybrid annuity TDF research note
Another research note will review key investment considerations for evaluating hybrid annuity TDF products.
Another research note will review key investment considerations for evaluating hybrid annuity TDF products.
Fiduciary well-being
We apply a fiduciary lens to every aspect of our retirement recordkeeping services so you can focus less on day-to-day operations and more on making decisions that add value.
SECURE 2.0 Act updates
It's been a year since the SECURE 2.0 Act was passed, and we’re committed to keeping you up to date as the law changes and we receive new guidance from regulators.
Roth catch-up contribution provision delayed
Regulators have issued a two-year administrative transition period for the implementation of the Roth catch-up contribution provision. As of January 1, 2026, participants ages 50 or older who earned more than $145,000 in FICA wages in the previous calendar year can only make catch-up contributions as Roth contributions.
Long-term part-time employee eligibility begins
You should be aware of these two dates:
- January 1, 2024: Long-term part-time (LTPT) employees—part-time employees who worked at least 500 hours in each of three consecutive years—will be eligible to make elective deferrals to their 401(k) plans.
- January 1, 2025: The definition of LTPT employees will change to part-time employees who worked at least 500 hours in each of two consecutive years. Coverage is expanded to include 403(b) plans.
LTPT employee eligibility for 2024 will be determined by tracking hours worked since January 1, 2021. Contact your Vanguard representative for help identifying who qualifies as an LTPT-eligible employee.
Roth dollars excluded from required minimum distributions
Beginning January 1, 2024, Roth dollars won't be subject to a required minimum distribution (RMD), and Roth dollars won’t be included when calculating RMD amounts. But you don't need to take any action. We'll make sure that Roth sources are exempt from RMD calculations and that all participant materials and forms are updated accordingly.
We’ve also notified participants who receive RMDs containing both Roth and non-Roth dollars that their RMDs will likely be lower beginning in 2024. And we’ve informed those with retirement plan balances that consist entirely of Roth dollars that their RMD payments will stop in 2024.
Watch our video, SECURE 2.0: The Journey to Implementation, and read our article, “SECURE 2.0—2024 Look Ahead.”
*Vanguard Digital Advisor received the top rating for "Best Robo-Advisor for Low-Cost Investing" for 2023 among 16 other robo-advisors selected by NerdWallet. NerdWallet evaluated each provider across the following weighted criteria as of October 1, 2022, to determine the winner for low costs: management fees (50%), expense ratios on investments (40%), and account fees (10%). NerdWallet also selected Vanguard Digital Advisor for the 2021 award based on November 16, 2020, data and the 2022 award based on October 1, 2021, data. Additional details about NerdWallet's methodology are available on their website. Current fees may vary for Digital Advisor and the other robo-advisors considered. Although Vanguard compensates NerdWallet for marketing services, NerdWallet's opinions and evaluations are independent and unrelated to the selection of Digital Advisor for this award. ©2017-2023 and TM, NerdWallet, Inc. All Rights Reserved.
Vanguard received the first overall ranking in Morningstar’s 2023 Robo-Advisor Landscape report among 17 other robo-advisors selected by Morningstar. Morningstar evaluated each provider across the following weighted criteria as of December 2022, to determine their rankings: total price (30%); the process used to select investments, construct portfolios, and match portfolios with investors (30%); the parent organization behind the digital platform (20%); and breadth of services (20%). Morningstar also selected Vanguard Digital Advisor for the 2022 award based on December 2021 data. For more on Morningstar’s methodology, go to The Best Robo-Advisors of 2023. Current fees may vary for Digital Advisor and the other robo-advisors considered. Although Vanguard compensates Morningstar for marketing services, Morningstar’s opinions and evaluations are independent and unrelated to the selection of Vanguard for this ranking. Following the independent announcement of this ranking, Vanguard purchased a license from Morningstar for the right to include this rating in Vanguard marketing. Source: “2023 Robo-Advisor Landscape” by Amy C. Arnott, et al. © 2023 Morningstar, Inc. All rights reserved.
Vanguard received the first overall ranking in Morningstar’s 2023 Robo-Advisor Landscape report among 17 other robo-advisors selected by Morningstar. Morningstar evaluated each provider across the following weighted criteria as of December 2022, to determine their rankings: total price (30%); the process used to select investments, construct portfolios, and match portfolios with investors (30%); the parent organization behind the digital platform (20%); and breadth of services (20%). Morningstar also selected Vanguard Digital Advisor for the 2022 award based on December 2021 data. For more on Morningstar’s methodology, go to The Best Robo-Advisors of 2023. Current fees may vary for Digital Advisor and the other robo-advisors considered. Although Vanguard compensates Morningstar for marketing services, Morningstar’s opinions and evaluations are independent and unrelated to the selection of Vanguard for this ranking. Following the independent announcement of this ranking, Vanguard purchased a license from Morningstar for the right to include this rating in Vanguard marketing. Source: “2023 Robo-Advisor Landscape” by Amy C. Arnott, et al. © 2023 Morningstar, Inc. All rights reserved.
Notes:
- All investing is subject to risk, including the possible loss of money you invest.
- Investments in target-date funds are subject to the risks of their underlying funds. The year in the fund name refers to the approximate year (the target date) when an investor in the fund would retire and leave the workforce. The fund will gradually shift its emphasis from more aggressive investments to more conservative ones based on its target date. An investment in target-date funds is not guaranteed at any time, including on or after the target date.
- Advice services are provided by Vanguard Advisers, Inc., a registered investment advisor, or by Vanguard National Trust Company, a federally chartered, limited-purpose trust company.
- Call 888-885-2306 for questions about the Vanguard Cash Plus Account. We're available Monday through Friday from 8 a.m. to 8 p.m., Eastern time.