Tax-Mapping: How Tax Toxic Are You?

Identifying tax opportunities on an annual basis is important. It is equally important to bring tax decisions and planning into your overall financial plan. An overall plan will help guide decisions that may actually include choosing to pay some additional tax in the near term in order to avoid considerably more in the future. If you have significant savings in your IRA or other pre-tax retirement accounts, estimating your Required Minimum Distribution may help you reduce some large future tax bills.

The United States has a progressive tax system, which means people with higher incomes pay a higher tax rate on each additional dollar earned. We use a Tax Clarity software to provide a landscape view of your tax situation, which may allow us to suggest alternate patterns of withdrawal or contribution to retirement accounts like 401ks, IRAs or Roth IRAs. We can also help you understand when it may be beneficial to consider Roth conversions or harvest a capital gain or capital loss in your taxable accounts.