Schedule a time with your Independent CERTIFIED FINANCIAL PLANNER TM to discuss the following 10 key tax planning items:

  1. Review your W2 and 1099s. Your 1099s and W2s provide valuable information about your earnings and investing habits. If your salary has increased, have you also increased your savings and investment rates?
  2. Apply income/salary to living expenses, and bonuses/stock options proceeds to wealth building goals.
  3. Review the tax efficiency of your investment strategy. If your mutual funds made sizable capital gains distributions, would you be better off holding low cost, tax-managed institutional funds in your taxable account(s)?
  4. Confirm your contribution rates to make the most of 401k limits: $19,500 for investors younger than 50 and $26,000 for those 50 and older.
  5. Does your 401k plan now also offer a Roth 401k option? If so, decide how much to contribute to the traditional 401k and how much to the Roth 401k.
  6. While you’re at it, consider putting your other investment contributions on auto pilot. Making auto monthly contributions allows your Independent CERTIFIED FINANCIAL PLANNER TM to optimize targeted dollar cost averaging into your portfolio and make more accurate planning projections.
  7. Consider increasing contributions into your deferred compensation plan, if applicable.
  8. Check in with your tax professional and gather tax documentation on deductible items: Tax day–April 15–will be here before you know it. If you’re considering itemizing your deductions, remember that they must exceed the standard deduction to be worthwhile. (For 2020, the standard deduction is $12,400 for individuals and $24,800 for married couples filing jointly. Some taxpayers may benefit from “bunching” their deductions, saving deductible outlays for a single year to exceed their standard deductions.
  9. Taxpayers subject to Required Minimum Contributions who are also charitably inclined may be better off making those charitable contributions directly from their IRA.
  10. Ensure your independent “advisory team” is working closely together to confirm you’re optimizing your wealth opportunities and minimizing any unnecessary tax exposure and expenses.

Tax efficiency is a key part of our comprehensive wealth management process.

While we are careful to not let the tax tail wag the dog, it is important to recognize taxes are one of your biggest annual expenses. At Mesa Financial Group, we simplify and reduce the burden and uncertainty of tax planning for our clients by gathering and reviewing all of our clients’ tax forms, and by closely collaborating with their tax professionals.