Smart Tax Moves to Keep More of Your Money

Tax season is coming. The goal? Pay what you owe--nothing more. A few smart moves can help lower your tax bill and keep more money working for you. Here’s what to focus on:

1. Max Out Tax-Advantaged Accounts

Some accounts let you grow money tax-free or tax-deferred. Make sure you’re getting the most out of them:

• 401(k) or 403(b): Contribute as much as you can--especially if your employer matches.
• IRA: Consider a Roth IRA for tax-free growth or a Traditional IRA for upfront deductions.
• Health Savings Account (HSA): Triple tax benefits: deductions, tax-free growth, and tax-free withdrawals for medical expenses.

If you’re self-employed, investigate SEP IRAs or Solo401(k)s for extra tax savings.

2. Use Tax-Loss Harvesting

Investments don’t always go up. If you have losing investments, you can sell them to offset taxable gains. This strategy helps lower your tax bill while keeping your portfolio balanced.

3. Take Advantage of Charitable Giving

Giving to charity isn’t just good for the world—it’s good for your taxes. Consider:

• Donating appreciated stocks instead of cash to avoid capital gains taxes.
• Bunching donations into one year to exceed the standard deduction.
• Ask me about QCDs & if they’re a good fit for you and your situation.

4. Be Smart About Withdrawals

If you’re in retirement, how you withdraw money matters.

• Take required minimum distributions (RMDs) to avoid penalties.
• Use a Roth conversion strategy if it lowers your future tax bill.
• Withdraw from taxable accounts first to let tax-advantaged accounts grow longer.

5. Plan for Changing Tax Laws

Tax laws change. Staying ahead of them can save you money. A big one to watch? Potential sunsetting of the 2017 tax cuts in 2026. Planning now can help you lock in today’s lower rates.

Why Having a CPA on Your Team Matters

Taxes and investments go hand in hand. At Centurion Wealth Management, our in-house CPA works closely with our advisory team to make sure your tax strategy and financial plan work together.

A little tax planning now can save a lot later. Let’s talk and make sure you’re not leaving money on the table. Get in touch today!