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  • Eric Walter, CFP®

Are You Tax-Efficient?


There has been much speculation about the current tax proposal and what may eventually pass. While the details remain in the balance, one thing is certain- taxes will be going up, eventually. Even if the current bill fell apart and no other legislation was put forth, which is highly unlikely, the Tax Cuts & Jobs Act will sunset after tax-year 2025. Regardless of the specific tax laws at any point in time, you can still be tax-efficient.



In years of high(er) income, lower taxes by…

  • Maximizing tax-deferred contributions to employer plans, HSAs & deductible IRAs

  • Increasing charitable gifts for itemizers or restructuring if you take the standard deduction

  • Selling loss assets to offset gains


In years of low(er) income, pay additional tax by…

  • Accelerating income or capital gains

  • Converting or contributing to Roth accounts

  • Increasing withdrawals from inherited assets


Strategize in retirement by…

  • Delaying Social Security to delay taxable income (and increase the benefit), in combination with:

    • Accelerating withdrawals from tax-deferred accounts

    • Converting tax-deferred assets to tax-free via Roth conversions

    • Withdrawing gains from non-qualified annuities

  • Charitably giving from your IRA through Qualified Charitable Distributions

  • Gifting appreciated securities

  • Sequencing withdrawals to pay taxes at the lowest possible rates


Let us know if you would like to discuss any of these strategies with an Advisor. Also, please consult your tax-preparer to verify eligibility to implement any of these strategies and to confirm how they may impact your Social Security taxability, Medicare adjustments, and capital gains tax.



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