Tax Strategies
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Posted on June 25, 2024 by Dan Pascone
The High Earner’s Guide to State and Local Taxes (SALT) & Deductions
Whether you’re on the brink of accepting an enticing job offer in a new state or are considering a move for a financial change of scenery, it’s crucial to analyze how State and Local Taxes (SALT) will impact your financial outlook. High SALT areas like New York and California may offer unparalleled professional opportunities, cultural […]
Posted on June 18, 2024 by Dan Pascone
Life Insurance Retirement Plans: Turning LIRPs into Powerful Retirement Tools
Let’s face it: when most people think of either life insurance or retirement planning, “exciting” isn’t the first word that comes to mind. But when those terms are combined into a “Life Insurance Retirement Plan,” the mundane concept turns into a crafty strategy that could give you access to sizable loans you might not even […]
Posted on June 11, 2024 by Dan Pascone
A Comprehensive Guide to NIIT for High-Income Investors
The Net Investment Income Tax (NIIT) almost always tends to catch high earners by surprise– sometimes, it feels like new tax rules and stipulations (like the AMT) are flying out of the woodwork at every turn. Call it what you want, the NIIT, an additional 3.8% tax on certain types of investment income for individuals […]
Posted on May 28, 2024 by Dan Pascone
The High Earner’s Playbook to Donor-Advised Funds
Donor-Advised Funds (DAFs) are a key tool for charitable giving for high-earners because they offer a unique blend of immediate tax benefits and strategic flexibility for sustained philanthropic efforts. By making an irrevocable contribution to a fund managed by a charitable entity, donors can claim a tax deduction in the year the contribution is made […]
Posted on May 20, 2024 by Dan Pascone
Tax Savvy Moonlighting: Tax Strategies for Side-Hustling High-Earners
Moonlighting, or taking on additional work outside your primary job, is becoming increasingly popular for a variety of reasons, such as rising costs, ambitious future plans, or simply because it’s become rather easy to make a good extra payday on an in-demand skillset thanks to various talent marketplaces. Whether you’re freelancing, consulting, or pursuing a […]
Posted on May 13, 2024 by Dan Pascone
Beyond Basics: HSAs as a Tool for Wealth and Health Management
Health Savings Accounts (HSAs) offer a beautiful trio of financial benefits often overlooked by high-earners. Referred to as the “triple tax advantage,” HSA contributions can: Lower your taxable income. Contributions to an HSA are made with pre-tax dollars, which means they can be deducted from your gross income. This taxable income reduction leads to immediate […]
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 March 25, 2024 by Dan Pascone
Tax Deductions vs Tax Credits for High Earners: What You Need to Know
As your earnings increase, the intricate dance between tax credits and deductions becomes crucial to keeping more of your hard-earned money in your pocket. Think of it this way: tax credits and tax deductions are two independent games you play during each tax year. Both can help you optimize your tax scenario, but each has […]