Tax Mitigation


A major responsibility for financial planners is understanding and accounting for the ever-changing tax environment. Many argue it can be the second largest expense in retirement, after potential health care costs. Throughout our process, we will work together with your designated tax preparer, whether they be a CPA or an Enrolled Agent, to ensure we are optimizing the tax code.

Roth IRAs--how and when they’re funded and converted--offer a good example of tax mitigation at work.

Roth Conversion Analysis

A common question we hear is, “Should I save on a pre-tax or Roth basis?” Our standard answer is both, depending on your income in a given year or your projected retirement tax bracket. We recommend adjustments in allocations as tax code changes are enacted.

Roth Conversion Timing

It’s possible in your first few years of retirement, prior to collecting Social Security or your pensions, that your taxable income will be at its lowest, making it an opportune time for a Roth conversion. Part of your tax plan will include estimating these costs and weighing the pros and cons of a conversion.

Backdoor Roth IRAs

In order to fund a Roth IRA, the IRS allows for conversions with no income limits. We will discuss the idiosyncrasies and possible pitfalls of this strategy, as well as common IRS red flags, such as the stepped transaction.