Tax Planning Strategies
Tax planning is the process of reviewing your financial situation to help ensure all elements such as income, investments, and retirement distributions work together in a way that reduces unnecessary tax exposure. While not all taxes can be avoided, tax planning should be an essential part of your financial strategy.
You worked hard for the assets you’ve built. In coordination with your CPA, enrolled agent, or legal representative, we help you develop a thoughtful tax strategy that considers your current and future needs. The goal is to help you make informed decisions so you can preserve more of your resources over time.
There are two primary categories of assets from a tax standpoint: qualified and nonqualified. Qualified assets are those assets you have not paid taxes on yet. Examples of qualified assets are 401k’s, 403b’s, IRAs, and pensions. Nonqualified assets are those assets you have already paid taxes, but you many be required to pay taxes on gains you have from the growth of the nonqualified asset. Examples of nonqualified assets are interest earned on checking/savings accounts, dividends from stocks you own, and gains in value from stock sales.
Understanding how tax impacts you and your income stream is essential in retirement.Beginning in 2024, individuals must begin taking required minimum distributions from most tax-deferred retirement accounts at age 73 (based on the SECURE 2.0 Act). Failing to withdraw your RMD could result in a penalty of up to 25% of the amount not taken. Another misunderstood area in retirement is Social Security. Depending on your total income, up to 85% of your Social Security benefits may be subject to federal taxes. In addition to federal tax, the following 9 states also tax Social Security benefits: Colorado, Connecticut, Kansas, Minnesota, Montana, New Mexico, Rhode Island, Utah, and Vermont.
Contact
info@beefinancialpartners.net
832-698-2010
9950 Cypresswood Drive,
Suite 200, Houston, TX 77070
Investment advisory services are offered through Bee Financial Partners Wealth, a Registered Investment Advisor. Investments through Bee Financial Partners Wealth are not FDIC insured, not bank guaranteed, may lose value, including loss of principal, not insured by any state or federal agency.