What Fastenal Employees Should Know About Caring for Aging Parents
Healthcare Provider Update: Healthcare Provider for Fastenal
Fastenal, a leading distributor of industrial and construction supplies, typically offers employee healthcare benefits through a self-funded plan, managed by a third-party administrator. This allows them to customize their health benefits while controlling costs, with the objective of improving employee health and productivity.
Potential Healthcare Cost Increases in 2026
As we approach 2026, Fastenal and its employees may face significant healthcare cost increases. Premiums in the Affordable Care Act (ACA) marketplace are projected to rise sharply-by as much as 66% in some states-due to various factors such as rising medical costs and the potential expiration of enhanced federal subsidies. This situation could result in many employees seeing out-of-pocket premium payments increase by over 75%, impacting their overall financial well-being and suggesting that Fastenal might need to adapt its healthcare strategies to mitigate employee healthcare expenses in the coming year.
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'Many Fastenal employees underestimate how caregiving responsibilities may influence their long-term planning. To prepare thoughtfully and involve the right professionals, it's important to start these conversations early.' — Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.
'Many Fastenal employees face unexpected pressure when aging parent responsibilities arise. I believe early planning and open family communication can help households navigate these challenges with greater clarity.' — Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.
In this article, we will discuss:
Key warning signs that aging parents may need additional support.
Essential legal and health care preparations to help families stay organized.
How to coordinate family involvement and emotional readiness during caregiving.
Many Fastenal employees in their mid-50s to early 60s come to discover that their retirement planning may have to expand to include the needs of their aging parents. As America’s population grows older, adult children frequently take on caregiving responsibilities for parents facing health issues, financial weaknesses, and cognitive decline. These realities influence family dynamics, investments, estate planning, taxes, and emotional well-being.
“Your parents' financial vulnerabilities become your financial stress unless you plan ahead and take a proactive role,” explains Brent Wolf, CFP®, an advisor at Wealth Enhancement.
Below are key considerations for individuals ages 55 to 65 who are preparing to support elderly parents.
1. Recognize the Early Signs of Cognitive Decline
For many families, cognitive decline in an aging parent typically appears gradually. Early warning signs may include:
- Repeatedly forgetting conversations
- Missing or duplicating bill payments
- Confusion about routine transactions
- Financial decisions influenced by new “friends”
- Unusual wire transfers or unexpected spending changes
Your role is not to diagnose—your role is to observe and speak up early. By addressing concerns promptly, you, your family, and your advisory team can potentially help mitigate the risk of future financial or cognitive harm.
2. Put Durable Power of Attorney and a Trusted Contact in Place
If a parent becomes cognitively impaired without a durable power of attorney, families often face a costly, lengthy conservatorship process. Fastenal employees can address this by planning ahead.
Consider getting the following key documents in place:
- A trusted contact authorization
- Durable Power of Attorney for finances
- HIPAA releases and health care power of attorney
- Updated beneficiary designations, wills, and trusts
These steps can help reduce uncertainty and lessen the risk of financial exploitation should a parent become more vulnerable.
3. Prepare for Health Care Shock: Medicare Has Gaps
Many households are surprised by how much Medicare does not cover. Common out-of-pocket costs include:
- Long-term custodial care (memory care, assisted living, in-home support)
- Prescription drugs
- Private caregivers and care managers
- Out-of-pocket deductibles and co-pays
To plan effectively, Fastenal employees should understand:
- What your parents’ insurance covers
- Their likely care expenses
- Whether self-funding or long-term care strategies may fit
- Whether Medicaid planning (with its five-year look-back) should begin early
Health care decisions become more urgent if cognitive decline is a concern.
4. Guard Your Parents Against Financial Abuse
Financial abuse is a growing threat for older adults—including parents of Fastenal employees. Common scams include:
- Romance schemes
- Fake IRS, FedEx, or government calls
- “Grandchild in trouble” scams
- Caregiver misconduct
- Pressure from acquaintances or distant relatives
- Fraudulent investment pitches
Adult children often hesitate to intervene, but silence can increase risk. Advisors can help monitor accounts, identify unusual activity, and place temporary holds when needed.
5. Organize the “Invisible” Parts of Their Financial Life
By age 80, even financially experienced parents may struggle to keep up with routine obligations such as:
- Required minimum distributions
- Quarterly tax payments
- Charitable documentation
- Insurance renewals
- Online passwords
- Property tax deadlines
- Portfolio withdrawal planning
Advisors can help reduce errors by automating tasks, consolidating accounts, and simplifying processes.
6. Bring the Entire Family Into the Conversation Early
The most challenging situations often arise when adult children learn of issues only after a crisis. Fastenal employees may benefit from:
- Annual family meetings
- Clear conversations about parents’ wishes
- Defined caregiving and financial roles
- Discussions around independence and dignity
Proactive communication may helps mitigate conflict and avoid last-minute decisions during emergencies.
7. Prepare Yourself Emotionally and Financially
Caring for aging parents can influence:
- Retirement timing
- Your ability to continue working
- Your cash flow
- Your mental and emotional resilience
Advisors can help you develop:
- A dedicated “parent care fund”
- Tax-efficient withdrawal strategies
- Cash flow outlines that factor in elder care
- Estate plans that reflect multigenerational needs
With thoughtful planning, supporting your parents does not have to disrupt your retirement goals—even for Fastenal employees navigating complex benefits.
8. Build a Team-Based Approach
Families caring for elderly parents often benefit from a coordinated team that may include:
- A financial advisor
- An attorney with experience working with seniors
- Tax specialist
- Geriatric care manager
- Estate planning attorney
- Health care advocates
Working together, these professionals can help manage risk for both parents and adult children through a unified strategy.
Conclusion
Aging is inevitable—but it does not have to create chaos. Early planning, while parents are still capable, can lessen emotional strain, help minimize family conflict, and ideally reduce the likelihood of financial harm.
“The best gift you can give your aging parents is structure, clarity, and a financial advocate who supports them when they can no longer support themselves,” says Brent Wolf.
For Fastenal employees ages 55 to 65, now is the time to act.
Taking the Next Step
The Retirement Group can help you design a Parent Care Plan that includes financial oversight, health care review, legal preparation, and fraud monitoring.
To speak with a team member who can guide you through each stage of the process, call
(800) 900-5867
.
We are here to support you, your parents, and your family through every stage of life.
What type of retirement plan does Fastenal offer to its employees?
Fastenal offers a 401(k) savings plan to help employees save for retirement.
How can Fastenal employees enroll in the 401(k) plan?
Employees can enroll in Fastenal's 401(k) plan through the company's benefits portal or by contacting the HR department for assistance.
Does Fastenal match employee contributions to the 401(k) plan?
Yes, Fastenal provides a matching contribution to employee 401(k) contributions, subject to certain limits.
What is the maximum contribution limit for Fastenal's 401(k) plan?
The maximum contribution limit for Fastenal's 401(k) plan is in line with IRS guidelines, which may change annually.
When can Fastenal employees start contributing to their 401(k) plan?
Fastenal employees can start contributing to the 401(k) plan after completing their eligibility period, typically within their first year of employment.
Are there any fees associated with Fastenal's 401(k) plan?
Yes, Fastenal's 401(k) plan may have certain fees, which are disclosed in the plan documents provided to employees.
Can Fastenal employees take loans against their 401(k) savings?
Yes, Fastenal allows employees to take loans against their 401(k) savings, subject to the plan's terms and conditions.
What investment options are available in Fastenal's 401(k) plan?
Fastenal's 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, to suit different risk tolerances.
How often can Fastenal employees change their 401(k) contribution amount?
Fastenal employees can change their 401(k) contribution amount at any time, subject to the plan's guidelines.
What happens to Fastenal employees' 401(k) savings if they leave the company?
If Fastenal employees leave the company, they can roll over their 401(k) savings to another retirement account or withdraw the funds, subject to tax implications.
With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
Fastenal offers a robust retirement plan for its employees, including the Fastenal Company & Subsidiaries 401(k) and Employee Stock Ownership Plan. This plan allows employees to save for retirement through salary deferrals and includes discretionary matching contributions from the company. Employees can contribute both pre-tax and Roth 401(k) deferrals. Fastenal offers an automatic enrollment feature, enrolling employees with a 5% pre-tax deferral unless they opt out (SEC.gov).
Fastenal's 401(k) plan includes various investment options, including mutual funds and company stock. Employees are permitted to invest up to 25% of their incoming contributions in Fastenal common stock, although subsequent transfers are restricted (SEC.gov). The plan also allows participants to make catch-up contributions if they are over 50 years old.
Fastenal also has an Employee Stock Ownership Plan (ESOP) incorporated into its 401(k) plan, which enhances employees' retirement savings. Upon retirement or termination, participants can choose to receive distributions in lump sums, partial payments, or installments
Restructuring and Layoffs: Fastenal announced a restructuring plan in early 2024 aimed at streamlining its operations and reducing overhead costs. The company will be consolidating some of its distribution centers and implementing workforce reductions. This move is part of a broader strategy to enhance operational efficiency and adapt to evolving market conditions. The decision to reduce headcount and close certain facilities reflects Fastenal's response to the pressures of a changing economic landscape, highlighting the need for companies to remain agile amidst economic uncertainties.
Company Benefits and 401k Changes: Fastenal has made adjustments to its employee benefits and 401k plans in response to the shifting economic environment. The company has modified its 401k matching contributions and adjusted health benefits to better align with its financial goals. These changes are significant as they impact employees' long-term financial planning and retirement readiness. Given the current investment climate and tax considerations, it is crucial for employees to stay informed about these changes to effectively manage their retirement savings and benefits.
Fastenal provides stock options and RSUs to eligible employees as part of their compensation and benefits package. Stock options are granted based on performance and tenure. RSUs are typically awarded to senior management and key employees.
Company's Official Website: Check Fastenal’s official website for their health benefits section, which often includes details about plans, coverage options, and recent updates.
Reliable News Sources: Look for news articles, press releases, and reports from reputable sources that mention Fastenal’s health benefits.
HR and Benefits Sites: Explore sites that specialize in employee benefits information or HR industry insights, which might have detailed information about Fastenal's health plans.
Employee Reviews: Check platforms like Glassdoor or Indeed for employee reviews that might mention specifics about health benefits.
Industry Publications: Find articles in industry-specific publications or websites that discuss trends and changes in employee benefits at Fastenal.
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