It’s that time of year, “tax season”.  Which also means it’s an opportunity to take a hard look at everything that has to do with tax efficiency and overall planning.  Collecting our 1099’s and other data to prepare our taxes gives us a look at what we are paying in taxes.  We can compare this year’s numbers to last year’s and hopefully improve the strategy.

Some key options are maximizing retirement plan contributions, considering using tax efficient investments such as government bonds and annuities as well as selling losses to offset gains.

For business owners, this may be a great time to review your current retirement plan or implement one. New laws allow for tax credits for new qualified plans and most small business owners are not aware that many plans do have flexibility in plan design which may allow for major contributions from the owners and greatly reduce the costs as well.

Tax considerations may come into the fold with generational wealth planning as well.  Whether the generational wealth planning and total estate planning is to avoid estate taxes or it is to prepare for possible Medicaid assistance, taxes may very well be a part of the equation.

Given the amount of moving parts that may be involved with taxes and long term planning, never hesitate to reach out to the professionals you count on beyond your tax preparer, such as your attorney and financial advisor.

Peter Janowsky