Motley Fool Money — Advocate for a Better 401(k) and Tax-Smart Charitable Giving

Date: November 22, 2025
Host: Robert Brokamp
Guest: Buck Hartzell, Senior Analyst at The Motley Fool

Episode Overview

This episode of the Motley Fool Money’s Saturday Personal Finance edition skips the headlines for a deep dive into two topics:

1. How employees can advocate for better 401(k) plans at their workplaces.
2. Tax-savvy strategies for charitable giving—tied to the upcoming holiday/giving season.

Robert Brokamp and long-time colleague Buck Hartzell reflect on their own experiences transforming The Motley Fool’s retirement plan and offer actionable advice for listeners seeking to improve their own (or their company’s) 401(k) plan. The latter part of the episode deals with the mechanics and new rules around charitable giving, including how to maximize both the philanthropic and tax benefits.

1. Improving Your 401(k): Lessons from Experience

(00:04 – 18:33)

History of Motley Fool's Plan

• Early Days:
  • In the late 1990s, The Motley Fool’s original 401(k) plan offered limited choices with high fees.
    • "We were paying 1.5% a year for an index fund, bro. I mean, you remember that." — Buck Hartzell (03:13)
  • Most investment options came from the plan sponsor, often with even higher fees and questionable performance.
• Attempts at Change:
  • Buck and Robert lobbied for better options, repeatedly suggesting new funds but were rejected multiple times by the plan sponsor.
    • "They went, no, no, no, no, no, no, no, no, no. Can't add any of those. But thanks for the call, guys." — Buck Hartzell (03:51)
  • Eventually, a company-wide effort led to replacing the plan sponsor and creating a lasting committee for ongoing oversight.

Why Early Plans Are Often Bad

• Small Companies: Fewer assets under management mean less leverage when negotiating with plan providers, so small companies often settle for expensive, limited options.
  • “They want to deal with plans with bigger assets than we had certainly at that time. So that makes it a little bit of a challenge.” — Buck Hartzell (05:23)

Key Steps to Evaluate and Improve Your 401(k)

A. Assess Existing Features (06:04)

• Auto Enrollment & Escalation: Encourages broader participation at no additional cost.
• Employer Match: Typical match is between 4–6%, incentivizing employee contributions.
• Roth 401(k) Option: Growing in popularity, allowing after-tax contributions.
• Participation Rate: Useful indicator—Motley Fool’s participation exceeds 95%.

B. Investment Options & Fees (07:32)

• Look for Passive Options: Availability of low-fee index funds and/or ETFs is essential.
• Red Flags: High fees for passive funds and an overrepresentation of funds from the sponsoring organization.
• Independent Research: Use publicly available documents like Form 11-K and 5500 to benchmark against respected employers.
  • "You can look up the form 11k... see what does this company have as investment choices within their own plan." — Buck Hartzell (08:50)

C. Administrative Costs (10:29)

• Who Pays the Fees?: Plans generally cost 0.5–1% (company size dependent). Know whether costs are covered by the employer or passed to employees (especially post-employment).
• Brokerage Windows: Some plans offer a self-directed brokerage option for broader investment choices.
  • “If you have that side brokerage account option, you can pick stocks, individual bonds, ETFs, mutual funds, literally thousands of choices.” — Robert Brokamp (11:08)

D. Investment Policy Statement (11:23)

• Important document governing fund selection; ask to review it.
• “We have an investment policy statement for our plan … you can always ask your employer for what’s [theirs].” — Buck Hartzell (11:23)

E. Understanding Plan Management (13:16)

• Who’s in Charge?: May be HR, a dedicated committee, or an outsourced fiduciary.
• Suggested questions to ask:
  • Who manages the plan’s investment options?
  • What are the broader goals for the plan (employee retention, attraction, financial security)?
  • If improvements are needed, what’s the process for suggesting changes?
  • “Ask informed questions politely … first thing is really to find out … who’s in charge.” — Buck Hartzell (13:16)
• Notable Quote:
  • “Just about anybody you talk to is in the same boat as you … anyone in HR is also participating in the same 401k … so if you can express it as, not as a complaint, but say, like, here’s a way to make all of our situations better...” — Robert Brokamp (15:30)

F. Fees to Avoid (16:08)

• Recurring Asset-Based Fees: Push back against any additional fees just for using certain features (e.g., brokerage windows).
  • “I would hope that most plans don’t have that. But to the extent that you find … features … that charge additional portion of assets under management, I would push back on those.” — Buck Hartzell (16:38)

Final Recommendations for 401(k) Advocacy

(17:06 – 18:33)

• Benchmark against role-model companies by examining their disclosed filings (Form 11-K).
• For HR professionals: research plans at firms you “keep losing out to” when hiring, as these can be recruiter differentiators.
• Don’t assume someone else is more qualified; speak up, ask questions, and offer to participate in committees.
  • “Don’t be afraid to speak up … You might be impressed, or they might even invite you to be part of the committee.” — Buck Hartzell (17:56)
• Serving on a 401(k) committee is “a really rewarding part of my time here… It does impact, I think, the lives of a lot of people who are working here that I care deeply about.” — Buck Hartzell (18:23)

2. Charitable Giving — New Tax Strategies for 2025–2026

(19:49 – end)

[Segment begins 19:49]

Tax-Smart Charitable Giving Basics

• Donating appreciated shares (stocks, bonds, ETFs) from taxable accounts lets you:
  • Avoid capital gains taxes.
  • Repurchase investments at a higher cost basis (tax advantage).
• For those 70½ or older:
  • Qualified Charitable Distribution (QCD): Donate directly from an IRA, up to $108,000/year, reducing taxable income and potentially required minimum distributions (RMDs).

Upcoming Changes (from July Bill; Effective 2026)

• Charitable Deduction Limits:
  • Deductions only allowed for contributions exceeding 0.5% of Adjusted Gross Income (AGI) for those who itemize (e.g., on $150,000 AGI, only the portion above $750 deductible).
    • May be an argument for accelerating charitable giving into 2025.
• Above-the-Line Deduction:
  • Starting 2026, new deduction for direct cash gifts: $1,000 (single filers), $2,000 (joint), even if standard deduction is used.
    • May make sense to delay some giving until 2026 for those not itemizing.
• Practical Advice:
  • “Most charities could really use the money as soon as possible.”—Robert Brokamp (20:47)
  • Always do your own research and consider consulting a tax advisor before making large gifts.

Personal and Suggested Charitable Organizations

• Fool Community Foundation: Focuses on wealth-building for Americans living paycheck to paycheck.
• Together We Bake: Provides workforce development for women facing barriers to employment in Alexandria, VA (Robert is personally involved).
  • “I'd personally be quite grateful if you visited TogetherWeBake.org and made a donation and or bought some really delicious cookies or granola which also make great holiday gifts.” — Robert Brokamp (21:48)

Notable Quotes by Timestamp

• "We were paying 1.5% a year for an index fund, bro." — Buck Hartzell (03:13)
• "They went, no, no, no, no, no, no, no, no, no. Can't add any of those. But thanks for the call, guys." — Buck Hartzell (03:51)
• "Most people's face of the 401k plan is an HR representative, but they might not actually be in charge at all." — Buck Hartzell (13:22)
• “Just about anybody you talk to is in the same boat as you ... so if you can express it as, not as a complaint, but say, like, here's a way to make all of our situations better..." — Robert Brokamp (15:30)
• “Don’t be afraid to speak up ... You might be impressed, or they might even invite you to be part of the committee.” — Buck Hartzell (17:56)
• "It does impact, I think, the lives of a lot of people who are working here that I care deeply about. And so that's been a rewarding experience for me." — Buck Hartzell (18:23)
• “Most charities could really use the money as soon as possible.” — Robert Brokamp (20:47)

Key Takeaways

• You CAN Improve Your 401(k): Even major improvements are possible with data-driven, persistent, and collaborative advocacy.
• Know What (and Who) to Ask: Understand your plan's features, costs, and governance—don't assume the experts have it all figured out.
• Tax Law Changes Affect Charitable Strategies: Timing matters for maximizing both your impact and your deductions.
• Engagement is Rewarding: Participation in plan improvement is impactful—for oneself and colleagues.

Essential Timestamps for Reference

• The Motley Fool’s 401(k) history/story: 02:37 – 05:36
• How to assess and benchmark your own plan: 06:04 – 09:19
• Administrative costs & fees: 10:29 – 11:23
• Process for requesting improvements: 13:16 – 17:00
• Closing thoughts and the power of advocacy: 17:06 – 18:33
• Tax tips for charitable giving: 19:49 – 21:33

This episode is an empowering primer for anyone looking to take ownership of their retirement planning and charitable giving, offering both technical knowledge and the inside stories to inspire action.