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Posted on June 3, 2024 by Dan Pascone
Your Guide to Different Retirement Accounts: Achieving Tax Diversification
TL;DR Answer Box Tax diversification means spreading retirement savings across tax-deferred accounts (pay taxes later) and tax-free accounts (pay taxes now, withdraw later tax-free). Since nobody knows what future tax rates will be, having multiple “tax buckets” gives you flexibility in retirement to control your taxable income and potentially reduce lifetime taxes. Last updated: February […]
Posted on May 28, 2024 by Dan Pascone
The High Earner’s Playbook to Donor-Advised Funds
TL;DR Answer Box Donor-Advised Funds (DAFs) let high earners “front-load” charitable deductions in a high-income year, then distribute grants to charities over time. You get an immediate tax deduction when you contribute, your donation can grow tax-free inside the DAF, and you keep advisory privileges on where/when grants go. DAFs are best when philanthropy is […]
Posted on May 20, 2024 by Dan Pascone
Tax Savvy Moonlighting: Tax Strategies for Side-Hustling High-Earners
TL;DR Answer Box Moonlighting income is usually treated as self-employment income, which means you may owe federal income tax + 15.3% self-employment tax (plus state tax where applicable). Since taxes aren’t withheld, you’ll often need to pay quarterly estimated taxes and track deductible business expenses to reduce what you owe. Last updated: February 12, 2026 […]
Posted on May 13, 2024 by Dan Pascone
Beyond Basics: HSAs as a Tool for Wealth and Health Management
TL;DR Answer Box Health Savings Accounts (HSAs) can offer a rare “triple tax advantage”: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. To contribute, you must be enrolled in a high-deductible health plan (HDHP). HSAs can be a powerful tool for high earners to reduce taxable income today and build a long-term […]
Posted on May 7, 2024 by Dan Pascone
Beyond Saving for College: 529 Plans as Strategic Legacy Planning Tools for High Earners
TL;DR Answer Box Superfunding a 529 plan lets you front-load five years of annual gift tax exclusions into a child’s 529 in one year—up to $90,000 per individual or $180,000 per couple in 2024—without triggering federal gift tax (if you properly elect the 5-year spread on Form 709). It can be a powerful move for […]
Posted on April 29, 2024 by Dan Pascone
Opportunity Zones 101: Opportunity or Overhype?
The tax advantages of Qualified Opportunity Zones (QOZs) sound great on paper—an uncapped capital gains tax that can be deferred and potentially tax-free treatment on the appreciation of your QOZ holdings. That’s enough to catch the attention of any high-earner, but are QOZs all they’re chalked up to be? The following article explores the Opportunity […]
Posted on April 23, 2024 by Dan Pascone
5 Smart High-Earner Moves to Maximize Your Tax Return
Employees have several unique, often-overlooked tax strategies that could potentially add hundreds of thousands of dollars to their bank account by retirement. For starters, how confident are you that you correctly filed the best possible tax return last year, legally leveraging all the available tax credits, deductions, and strategies? Like many, you might be left […]
Posted on April 16, 2024 by Dan Pascone
Breaking Down the Mega Backdoor Roth: A Tax-Saving Strategy for High Earners
Welcome to the incredibly nuanced world of retirement planning, where the Roth IRA tends to reign supreme for its tax-free withdrawals in the golden years. Why a Roth? You contribute after-tax money to a Roth. Your contributions grow tax-free, and your withdrawals are tax-free as well. However, there’s a catch for the high flyers: income […]
Posted on April 9, 2024 by Dan Pascone
All About the Backdoor Roth IRA
Backdoor Roth IRAs stand out as a sophisticated strategy for high-income folks who are otherwise unable to contribute directly to a Roth IRA due to income limits. For instance, people’s ability to make direct Roth IRA contributions phases out at $153,000 Modified Adjusted Gross Income (MAGI) or $228,000 for married couples filing jointly. The Backdoor […]
Posted on April 1, 2024 by Dan Pascone
3 Ways to Access Retirement Funds Early
There are multiple reasons you might want your retirement account money early: starting a family, an investment opportunity, or even just eyeing an early retirement. Tax-advantaged accounts can be an exceptionally great way to grow your nest egg with the stock market, but accessing your funds before hitting the typical retirement age comes with fees, […]