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Tax Reduction Strategies

Good ‘ol Uncle Sam…

Whether you have a limited or unlimited amount of income, we assume you, like most Americans, prefer to keep your dollars rather than give them to Uncle Sam. To make your retirement hike as seamless as possible, it’s best to put a tax reduction strategy in place. Listed are a few examples we help you consider.

Retirement Contribution Tax Analysis

Analyze your retirement plan contributions to determine what type provides you the most tax advantages. Should you make Pre-Tax or Roth contributions? Pre-tax allows you to receive a tax deduction now, earnings grow tax deferred and then distributions are taxable as ordinary income. Roth contributions do not receive a tax deduction up front, earnings grow tax deferred and then distributions are 100% Tax Free after the age of 59-1/2.

Consolidation Of Recordkeeping For Like Accounts

Receiving multiple statements and 1099’s on the same like type accounts (e.g. IRA’s, 401k, 403b, simple IRAs) can be confusing and create unnecessary extra tax filings. Today, with Investment advisory and brokerage accounts you can still mitigate risk and diversify your portfolio without the need for multiple like accounts. We are always an advocate of simplicity. Review your overall portfolio to see if you can consolidate and simplify your recordkeeping.

Asset Location And Tax Shifting Strategy

Different types of investments get different tax treatments. With that said, where your assets are can potentially increase returns and lead to faster growth of assets by strategically minimizing the impact of taxes. We take an in depth look of your assets that you are paying taxes on, but not taking income, to determine a tax advantageous strategy.

Retirement Plan Rollover Analysis

Knowing how to roll over your retirement plan properly can save you big in tax consequences. Common mistakes are easily made, which cause unnecessary taxes and penalties. Qualified plan withdrawals before the age of 59 ½ will be counted as ordinary income, which may increase your taxable income and create an additional 10% early withdraw penalty. Make sure you know all of the facts before you make the rollover.

Alternative Retirement Plan Assessment

Maximize your retirement and tax savings with benefit stacking. Traditional retirement plans, including 401(k)s may not be enough to fund your retirement, especially for successful business owners who make more than $250,000/year. To shelter enough money to fund a comfortable retirement, you may need to think beyond 401(k)s and simple IRAs due to the contribution limits they both have. Not only do you need to look at other options, but be sure to do so in the most tax advantageous way – contribute more, save more, live comfortably.

Business Entity Structure Evaluation

There are numerous business entities for a small business to choose from, including corporations, LLC’s and more. Whatever entity you are already in, or are thinking about choosing, you have legal and tax implications. Each entity is taxed differently, so as a business owner, you must identify general characteristics, advantages and disadvantages, to make sure you have the one that is best-suited for your needs. You may be missing tax benefits that you don’t even realize. We will identify restructuring opportunities to make sure you are getting the most out of your business entity structure.

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After a brief Discovery call, you decide if we’re a good fit. If you choose to move forward, we’ll help you create an actionable plan for your perfect retirement. The way we see it, you deserve to retire on your terms without confusing pricing or sales pitches.