Tax Strategies for Enhanced Financial Planning
Optimize your investments by creating tax sensitive strategies with a Midland Wealth Advisor.
One effective way to minimize taxes is through retirement savings accounts.
Roth IRA or Roth 401(k) Plan
Contributions are made with after-tax dollars, allowing assets to grow tax-free. Qualified withdrawals are also tax-free, provided the account has been open for at least five years, and you are over 59½. If you withdraw funds before meeting these conditions, you may face taxes and penalties. Roth accounts can be beneficial if you expect to be in a higher tax bracket when you withdraw.
Traditional IRA or 401(k) Plan
Contributions are made with pre-tax dollars, meaning the money is taxed at your income tax rate upon withdrawal. This option may be advantageous if you expect to be in a lower tax bracket at retirement.
You may also split your savings between the two types of accounts or convert account types, though you may owe income tax in the year of conversion. Our financial advisors may guide you through these decisions and help address tax concerns, including potential federal and state taxes on retirement accounts, pensions, and annuity benefits.
Our advisors can assist you in understanding and implementing various tax sensitive strategies, such as:
Being prudent with capital gains tax decisions is a key component to this strategy.
This strategy allows you to offset capital gains with capital losses, helping to reduce your overall tax liability.
Additional strategies include estate planning, insurance options, gifting or charitable contributions, Health Savings Accounts (HSAs), 529 college savings plans, and more. Set up a meeting with one of our financial planners to learn more about optimal solutions tailored to your unique situation, needs, and goals.
To reduce your tax liabilities, consult with an experienced financial planner. At Midland, our financial advisors have years of experience in providing comprehensive wealth management strategies, including tax and financial planning. We can help you design tax-efficient portfolios and advise on ways to:
such as contributions to retirement accounts, HSAs, 529 plans, and charitable contributions.
to lower your taxable income.
to reduce the amount of taxes you owe or increase your tax refund.
By partnering with Midland, you’ll receive guidance to help navigate the complexities of tax planning and enhance your financial well-being.
Midland Wealth Management does not provide tax or legal advice. Please consult your tax or legal advisors to determine how this information may apply to your own situation. Whether any planned tax result is realized by you depends on the specific facts of your own situation at the time your taxes are prepared.
Our team of dedicated professionals are here to support you.
