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How Insurance Deductibles Work

An insurance deductible is the amount you, the insured, pay before any claim is paid ...

The post How Insurance Deductibles Work first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

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Enhancing Estate Planning through Heir Involvement

Estate planning goes beyond legal formalities; it’s an essential process that facilitates meaningful family dialogue ...

The post Enhancing Estate Planning through Heir Involvement first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

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Social Security, Medicare, and HSAs

If your employer health plan is a health savings account (HSA) paired with a high-deductible ...

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Advance Wealth Planning Tips for Tax Preferred Saving Strategies

August 14, 2018

The federal government has long provided incentives for families to save, based on three different types of tax preferences; deferral, deductibility, and tax-free distributions. For wealthier households, however, a more advanced planning strategy is required. The appropriate mix of tax preferenced vehicles should include a conversation with your estate planning and asset protection planning attorney to generate a hierarchy.

The glass wall of the building with the inscription Bank

The right approach considers the preferenced accounts first and after those contribution limitations have been met, this will then spill additional savings over to the following tier. When this is used as part of a holistic planning strategy, the hierarchical model helps those people with significant assets and high levels of income to minimize their tax liabilities, while also maximizing growth of the savings. Tax preferenced retirement accounts come in two different forms; traditional accounts and Roth style accounts.

Roth style accounts are not deductible when contributions are made but are tax free when distributed. Whereas, a traditional account gives a tax deduction for contributions, but the distributions are ultimately taxed. These retirement accounts are, in some sense, double tax preferenced since they get tax-deferred status on assets inside the account in addition to tax free distribution treatment at the end or a deduction up front.

Households that are earning $300,000 or more might have different goals than families with different incomes. Some of the most common goals for these advanced earners include building family wealth, maximizing economic value of the dollars being saved, paying for college or saving for retirement. Consulting with an experienced estate planning lawyer is strongly recommended when you are trying to figure out what is most appropriate for you and your loved ones.

 


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Schedule your free Exploratory phone call

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can be of assistance.

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listings and become a part of an amazing team.

Our Social Media

Connect with us on Social Media using the following buttons:

Visit our Podcasts

Listen in, Join the Conversation!

Recent Posts
How Insurance Deductibles Work

An insurance deductible is the amount you, the insured, pay before any claim is paid ...

The post How Insurance Deductibles Work first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more
Enhancing Estate Planning through Heir Involvement

Estate planning goes beyond legal formalities; it’s an essential process that facilitates meaningful family dialogue ...

The post Enhancing Estate Planning through Heir Involvement first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more
Social Security, Medicare, and HSAs

If your employer health plan is a health savings account (HSA) paired with a high-deductible ...

The post Social Security, Medicare, and HSAs first appeared on Integrated Tax Planning, Legal Planning & Financial Planning.

See more