Tax Planning

Tax planning at Focused Financial Group means looking at how each financial decision affects what you pay in taxes over your lifetime, not only this year, and coordinating those decisions with your CPA. We do not prepare returns or give tax advice; we help make sure the plan, the accounts and the tax return work together.

How do a financial advisor and a CPA work together on taxes?

Your CPA reports what happened and files the return. We help shape what happens next: which accounts to fund, when to take income, and how to give to charity. With your permission we share the plan with your CPA so both sides see the same picture, and we ask for the return so the plan reflects your actual tax situation.

When do required minimum distributions (RMDs) start?

Under current federal law, RMDs from traditional IRAs and most employer retirement plans begin at age 73 for people born in 1951 through 1959, and at age 75 for people born in 1960 or later. The first distribution can be delayed until April 1 of the following year, but that means two distributions in one tax year. Roth IRAs have no RMDs during the owner's lifetime. We confirm each client's start date and help plan the withdrawals.

What is a Roth conversion?

Moving money from a traditional IRA or 401(k) to a Roth IRA. The amount converted is taxed as income in the year of conversion, and qualified withdrawals later are tax-free. Conversions are sometimes considered in lower-income years, such as the years between retirement and RMDs. Whether one makes sense depends on current and future tax brackets, time horizon and how the tax will be paid, and should be reviewed with your CPA.

How can charitable giving be tax-aware?

Options include giving appreciated securities instead of cash, bunching several years of gifts into one year, using a donor-advised fund, and, for people age 70½ or older, qualified charitable distributions directly from an IRA. The right approach depends on your tax situation and the charities you support.

What should business owners think about?

Retirement plan contributions, the timing of income and expenses, how the business is structured, and how a future sale will be taxed. These decisions involve your CPA and attorney, and planning early widens the options.

Talk with us

Call 770-250-7588 or use the Contact Us page. Bring last year's return if you have it.

This material is for general information only and is not tax or legal advice. Tax laws change; consult a qualified tax professional about your situation.