NOBODY likes paying extra money to the IRS…

We have put a lot of time and effort into how we help our clients get ahead of paying taxes and we have a process for doing that.

Buckets of Money

As an investor, you typically have 3 ways to pay taxes in retirement:

 

1. Tax-Deferred

  • 401(k), 403(b), Traditional IRA, Deferred Annuities 
  • It is not uncommon for our new clients to have most of their assets in this bucket. It is used to lower our current tax bill and push those taxes to the future.
 

2. Taxable

  • Individual or Joint Investment Accounts, Real Estate, Collectibles
  • We refer to these investments as “regular” as they are not necessarily preserved for retirement. The money is already taxed and might pay income taxes on interest and dividends each year plus any capital gains on the sale of any assets that made money. 
  • We can utilize these accounts for Tax Loss Harvesting, if any investments lose value.
 

3. Tax-Free

  • Roth IRA, Roth 401(k)
  • This is our favorite bucket. The money goes in after taxes have been paid. The money then comes back out, with a qualifying event (usually in retirement) tax FREE. 
  • We have many strategies for getting funds into these accounts and utilize all of them.
 

1. Tax-Deferred

  • 401(k), 403(b), Traditional IRA, Deferred Annuities 
  • It is not uncommon for our new clients to have most of their assets in this bucket. It is used to lower our current tax bill and push those taxes to the future.
 

2. Taxable

  • Individual or Joint Investment Accounts, Real Estate, Collectibles
  • We refer to these investments as “regular” as they are not necessarily preserved for retirement. The money is already taxed and might pay income taxes on interest and dividends each year plus any capital gains on the sale of any assets that made money. 
  • We can utilize these accounts for Tax Loss Harvesting, if any investments lose value.
 

3. Tax-Free

  • Roth IRA, Roth 401(k)
  • This is our favorite bucket. The money goes in after taxes have been paid. The money then comes back out, with a qualifying event (usually in retirement) tax FREE. 
  • We have many strategies for getting funds into these accounts and utilize all of them.
 

1. Tax-Deferred

  • 401(k), 403(b), Traditional IRA, Deferred Annuities 
  • It is not uncommon for our new clients to have most of their assets in this bucket. It is used to lower our current tax bill and push those taxes to the future.
 

2. Taxable

  • Individual or Joint Investment Accounts, Real Estate, Collectibles
  • We refer to these investments as “regular” as they are not necessarily preserved for retirement. The money is already taxed and might pay income taxes on interest and dividends each year plus any capital gains on the sale of any assets that made money. 
  • We can utilize these accounts for Tax Loss Harvesting, if any investments lose value.
 

3. Tax-Free

  • Roth IRA, Roth 401(k)
  • This is our favorite bucket. The money goes in after taxes have been paid. The money then comes back out, with a qualifying event (usually in retirement) tax FREE. 
  • We have many strategies for getting funds into these accounts and utilize all of them.

Tax Return Reviews

We review the tax returns of anyone that is going to be working with us. We also continue to review the tax returns of our clients each year.

 

1. 37-Point Checklist

  • We go through each tax return using a 37-point checklist to look for opportunities to pay less to the IRS.
  • We also review any action items that we helped you execute to ensure that they were done correctly.
 

2. Back-Door Roth IRA

  • This is a complex strategy that required proper reporting on IRS Form 8606 in order to get funds into a Roth IRA for our high-income earning clients.
  • We have a step-by-step guide to ensure that this is done correctly by your tax preparer so that we can make proper use of a loophole created by the IRS to get funds into the tax-free bucket.
 

3. Roth Conversions

  • This is a great way for us to help our clients fill their tax-free buckets each year. We review past tax returns, have a conversation with you about any changes, and then work on shifting assets from the tax-deferred buckets to the tax-free buckets by completing conversions.
  • This move requires you to pay taxes on conversion amounts, which is why we proceed with caution and run thorough numbers before execution. 
  • This strategy can be done in varying increments over your entire life, as it will also benefit your beneficiaries.
 

1. 37-Point Checklist

  • We go through each tax return using a 37-point checklist to look for opportunities to pay less to the IRS.
  • We also review any action items that we helped you execute to ensure that they were done correctly.
 

2. Back-Door Roth IRA

  • This is a complex strategy that required proper reporting on IRS Form 8606 in order to get funds into a Roth IRA for our high-income earning clients.
  • We have a step-by-step guide to ensure that this is done correctly by your tax preparer so that we can make proper use of a loophole created by the IRS to get funds into the tax-free bucket.
 

3. Roth Conversions

  • This is a great way for us to help our clients fill their tax-free buckets each year. We review past tax returns, have a conversation with you about any changes, and then work on shifting assets from the tax-deferred buckets to the tax-free buckets by completing conversions.
  • This move requires you to pay taxes on conversion amounts, which is why we proceed with caution and run thorough numbers before execution. 
  • This strategy can be done in varying increments over your entire life, as it will also benefit your beneficiaries.
 

1. 37-Point Checklist

  • We go through each tax return using a 37-point checklist to look for opportunities to pay less to the IRS.
  • We also review any action items that we helped you execute to ensure that they were done correctly.
 

2. Back-Door Roth IRA

  • This is a complex strategy that required proper reporting on IRS Form 8606 in order to get funds into a Roth IRA for our high-income earning clients.
  • We have a step-by-step guide to ensure that this is done correctly by your tax preparer so that we can make proper use of a loophole created by the IRS to get funds into the tax-free bucket.
 

3. Roth Conversions

  • This is a great way for us to help our clients fill their tax-free buckets each year. We review past tax returns, have a conversation with you about any changes, and then work on shifting assets from the tax-deferred buckets to the tax-free buckets by completing conversions.
  • This move requires you to pay taxes on conversion amounts, which is why we proceed with caution and run thorough numbers before execution. 
  • This strategy can be done in varying increments over your entire life, as it will also benefit your beneficiaries.

Learn more about how to manage your lifetime tax bill by reading our

TAX EDUCATION BLOG

 

Everyone should pay the taxes that they owe, but with proper planning and thinking ahead, we can help you manage your lifetime tax bill to the IRS.

Let’s Start with a Conversation

DISCLAIMER: It is important to note that we are NOT Certified Public Accountants (CPAs), nor do we process tax returns for our clients. We advise that you consult with your CPA prior to utilizing any strategies mentioned on this page or grant us the permission to discuss with your CPA.