Tax Strategies

Tax strategies represent a highly sought-after aspect of financial planning, yet are offered by only a limited number of financial advisors. BW Wealth Management specializes in implementing the most tax-efficient strategies for our clients. Each client has a very unique circumstance, so we custom develop a specific tax strategy for the needs of each client.

What you make is not as important as what you keep. We structure our tax strategies into the following key areas:

Tax Optimization Planning

A personalized analysis to educate and guide you on optimal tax strategies, ensuring the lowest possible lifetime tax liabilities.

These strategies help you lower lifetime taxes, keep you in a lower tax bracket, potentially pay less in Social Security taxes among others.

Sequencing Account Contributions
Tax Planning Considerations by Investment Type
Calculating the impact of the Net Investment Income Tax (NIIT) and strategies to Minimize it
Two Types of Distributions (Qualified v. non-qualified) Taxation for each

Tax efficient withdrawal/ income strategies:

This involves analyzing your existing investments and determining the optimal timing and sources for withdrawals to minimize taxes, as well as repositioning your assets to allow you to be more in control of when and how much tax you pay. Advising on when and how much to withdraw from qualified and non-qualified accounts, maximizing deductions and being aware of favorable tax circumstances when they exist so we can take advantage of the tax breaks and not lose them because you were unaware.

Coordinating Distribution Sequencing
Tax Loss Harvesting Essentials
Capital Gains Harvesting
Specific Identification Method of Cost Basis
Annuities exclusion rules

Utilizing ROTH Conversions while minimizing taxes and IRMMA (Medicare cost) implications:

When executed properly, Roth conversions can be one of the most effective strategies for reducing taxes. These strategies will increase your tax-free assets, which can lower your tax bracket, decrease the amount of taxes you pay on social security, reduce your IRMMA (Medicare cost), capital gains tax and Net interest income penalties. Our approach focuses on optimizing tax-free income while keeping current taxes and IRMAA impacts to a minimum, ultimately leading to more tax-free income and lower lifetime taxes.

Reduce IRMAA penalties
Stay in lower tax bracket
Reduce RMD’s
Eligible Rollover Distribution Rules

Strategies to Lower Lifetime Taxes:

Whether you are just starting to invest or are well into retirement, there are various tax planning strategies that can help reduce your lifetime tax burden if implemented effectively. Without these strategies, you are subject to the government’s tax regulations without flexibility in how and when you pay. By incorporating tax planning strategies, you gain more control over the timing and amount of taxes you owe. Since every individual’s financial situation is unique, tax planning should be tailored to meet your specific needs. Some common strategies include, but are not limited to, the following:

Calculating the IRMAA “Tax” Impact and Practical Considerations When Planning for the IRMAA “Tax”
Tax-Efficient Planning for Insurance Products in Retirement
Essential Tax Considerations for the Sale of a Primary Residence
Tax Planning for Those with Large Medical Expenses
Taxation of Social Security and Paying Your Taxes in Retirement
Reducing Net Investment Interest Penalty
Avoiding the Widow(er) tax
1031 Exchange
Charitable Trust