Taxes
Zoe Team and Nancy Fehrenbach, CFA, CFP® (Zoe Network Advisor)
8 min read
Smart tax strategies can significantly enhance your wealth accumulation over time.
Tax-advantaged accounts and efficient asset allocation are key to minimizing liabilities.
Regular reviews of your tax strategy help adapt to changing market conditions and personal financial goals.
These are accounts like 401(k)s or IRAs that offer tax benefits, such as tax-deferred growth or tax-free withdrawals, to help grow your wealth.
It is recommended to review your strategy at least annually or whenever there is a major life change to ensure it remains optimal.
No, strategies help minimize costs and maximize efficiency, but growth ultimately depends on market performance and investment choices.
Consider long-term tax strategies to optimize financial growth. Implementing these strategies can help reduce tax bills, save more, and achieve financial goals sooner.
The deadline for tax filing is around the corner. Besides meeting all the requirements for this date, have you considered the impact of implementing long-term tax strategies on your wealth? Taking steps now can set you up for financial success and security. So take advantage of the opportunity to optimize your tax planning and maximize your financial growth potential.
Reducing tax bills allows you to save more, grow wealth faster, and achieve your financial goals sooner. Of course, we all roll our eyes at tax filing, but who doesn’t find getting money back exciting? There is one opportunity left to lower your tax bill this year.
It’s time to seize several tax planning opportunities that can significantly impact your financial future. The good news is that you have the flexibility to choose the right time to take advantage of these opportunities. Retirement saving and charitable giving are both directly tied to lowering taxes. Here’s how:
Retirement saving tax strategies significantly impact how you grow your wealth. Saving in designated retirement accounts, including traditional and Roth IRAs, 401(k)s, and 403(b) accounts, can provide tax savings now or in retirement, depending on whether you choose a pre-tax or an after-tax retirement saving account.
Which is best for you, traditional pre-tax or Roth after-tax saving, is a question most easily answered with the help of a financial planner who can evaluate your lifetime tax rates. While I often advocate for a mix of traditional and Roth savings, emphasizing one or the other (depending on a client’s circumstance), working with a financial planner to know what is best for your unique situation is extremely valuable. This is a tedious process with many factors to consider, and you don’t have to do it alone.
You can convert funds saved on a pre-tax basis to an after-tax basis via a Roth conversion by paying income tax on the converted amount. Those funds converted will now grow tax-free and are not subject to RMDs. A low taxable income year is an ideal time to consider this strategy, whether due to low work income, recent retirement, or large itemized tax deductions. Another opportunity to use the Roth conversion strategy is when you have room before hitting the next tax bracket. Converting an amount to the top of your current tax bracket may make sense. In both instances, assets grow tax-free, and future taxable RMDs are reduced or eliminated.
You should also consider your market outlook when timing contributions. For example, many people make equal contributions to their 401(k)s and wait until year-end to make IRA contributions. But if you have a positive market outlook and have the funds available now, investing in your IRA now, front-loading your 401(k) early in the year, or doing Roth conversions early in the year allows the growth to happen in these tax-advantaged accounts.
Tailoring your approach based on specific objectives can be instrumental in devising a customized plan, as various strategies fulfill different goals.
To reduce current taxes, a good strategy is saving via a traditional IRA or 401(k). Doing so allows you to contribute pre-tax dollars and reduce your tax bill. For 2023 you can save up to $20,500 to your company’s traditional 401(k) and $27,000 if you are over 50. Assets grow tax-deferred.
To avoid paying taxes on the growth of your retirement saving and retirement account withdrawals, consider choosing a Roth IRA or 401(k). You pay taxes now on what you contribute to a Roth account, meaning you currently have less cash flow. However, the assets in Roth accounts grow tax-free. In addition, withdrawals are tax-free any time after reaching age 59 ½ and are not subject to RMDs providing additional flexibility (in retirement, the IRS requires you to take Required Minimum Distributions from your traditional IRA and 401(k), which are taxed as income, but in there is an exemption in this case).
Beyond retirement saving strategies, gifting and giving also open doors to reduce your tax burden. From contributing to your children’s 529 plans to making donations with a cause, here are some tax strategies you might’ve been curious about:
Giving to your children via 529 education savings plans allows funds to grow tax-free if withdrawn to pay for qualified education expenses. Depending on your state, you can also enjoy state tax benefits for contributing to a 529 plan. In addition, Secure Act 2.0, which passed in late 2022, allows 529 funds up to $35,000 to be converted to a Roth IRA for that individual if the account has been open for at least 15 years. So opening a 529 account now, even with a small amount, will start that clock ticking.
QCDs allow those currently taking RMDs to give directly to a 501(c)(3) charity from their IRA up to the limit of $100,000. This reduces taxable RMD income dollar for dollar.
Donating appreciated stock directly to a charity allows you to contribute more to your favorite organization. A direct stock donation to your chosen 501(c)(3) charity is valued at market value on the date of transfer for tax purposes. It avoids the capital gains tax you would otherwise pay if you sold the stock and donated the proceeds. Many charities accept stock donations as it is a win-win for both charity and donor.
Increasing your giving in a single year by “bunching” donations or utilizing donor-advised funds (DAFs) allows you to itemize your deductions. Strategically plan to bunch your donations into one year, possibly by making what you consider last year’s and this year’s donations simultaneously to push you over the standard deduction threshold. Also, consider funding a Donor Advised Fund, which allows you to take the donation tax write-off in one year but distribute the funds over time to the chosen charities. This is a beneficial technique when receiving a large one-time bonus.
Timing is a critical factor to consider when developing tax strategies, as it can significantly impact the amount of tax you owe and the effectiveness of your tax planning. Therefore, tax strategies should be considered a year-round priority rather than solely during tax-filing season.
Vigilance for harvesting tax losses throughout the year (rather than waiting until year-end) provides additional tax savings. Selling security at a loss provides a capital loss tax deduction that can match against capital gains from other investments or be taken as a tax deduction of up to $3,000 per year from your tax return. People often focus on harvesting tax losses at year-end. But March 2020, when the S&P fell significantly but later rebounded, demonstrated that taking advantage of these opportunities throughout the year is even more beneficial. A financial advisor by your side monitoring these opportunities is a great resource.
Gifting assets earlier in the year moves the asset growth out of your estate earlier and provides the recipient with that growth sooner for the benefit of both. In addition, an individual can gift up to $17,000 per year per recipient without triggering gift taxes.
While paying taxes is a part of life, taking advantage of these opportunities can help you minimize your tax bill and growth your wealth. Working with a trusted financial advisor who understands your unique circumstances will help you maximize these opportunities.
Implementing long-term tax strategies can be a game-changer in growing your wealth. By taking advantage of the various tax-saving opportunities available, you can reduce your tax burden, free up cash flow, and optimize your financial growth potential. From contributing to retirement accounts to taking advantage of deductions and credits, and making charitable contributions, there are several ways to minimize your tax liability and maximize your financial success. With careful planning and execution, you can secure your financial future and achieve your long-term goals.
Consider long-term tax strategies to optimize financial growth. Implementing these strategies can help reduce tax bills, save more, and achieve financial goals sooner.
The deadline for tax filing is around the corner. Besides meeting all the requirements for this date, have you considered the impact of implementing long-term tax strategies on your wealth? Taking steps now can set you up for financial success and security. So take advantage of the opportunity to optimize your tax planning and maximize your financial growth potential.
Reducing tax bills allows you to save more, grow wealth faster, and achieve your financial goals sooner. Of course, we all roll our eyes at tax filing, but who doesn’t find getting money back exciting? There is one opportunity left to lower your tax bill this year.
It’s time to seize several tax planning opportunities that can significantly impact your financial future. The good news is that you have the flexibility to choose the right time to take advantage of these opportunities. Retirement saving and charitable giving are both directly tied to lowering taxes. Here’s how:
Retirement saving tax strategies significantly impact how you grow your wealth. Saving in designated retirement accounts, including traditional and Roth IRAs, 401(k)s, and 403(b) accounts, can provide tax savings now or in retirement, depending on whether you choose a pre-tax or an after-tax retirement saving account.
Which is best for you, traditional pre-tax or Roth after-tax saving, is a question most easily answered with the help of a financial planner who can evaluate your lifetime tax rates. While I often advocate for a mix of traditional and Roth savings, emphasizing one or the other (depending on a client’s circumstance), working with a financial planner to know what is best for your unique situation is extremely valuable. This is a tedious process with many factors to consider, and you don’t have to do it alone.
You can convert funds saved on a pre-tax basis to an after-tax basis via a Roth conversion by paying income tax on the converted amount. Those funds converted will now grow tax-free and are not subject to RMDs. A low taxable income year is an ideal time to consider this strategy, whether due to low work income, recent retirement, or large itemized tax deductions. Another opportunity to use the Roth conversion strategy is when you have room before hitting the next tax bracket. Converting an amount to the top of your current tax bracket may make sense. In both instances, assets grow tax-free, and future taxable RMDs are reduced or eliminated.
You should also consider your market outlook when timing contributions. For example, many people make equal contributions to their 401(k)s and wait until year-end to make IRA contributions. But if you have a positive market outlook and have the funds available now, investing in your IRA now, front-loading your 401(k) early in the year, or doing Roth conversions early in the year allows the growth to happen in these tax-advantaged accounts.
Tailoring your approach based on specific objectives can be instrumental in devising a customized plan, as various strategies fulfill different goals.
To reduce current taxes, a good strategy is saving via a traditional IRA or 401(k). Doing so allows you to contribute pre-tax dollars and reduce your tax bill. For 2023 you can save up to $20,500 to your company’s traditional 401(k) and $27,000 if you are over 50. Assets grow tax-deferred.
To avoid paying taxes on the growth of your retirement saving and retirement account withdrawals, consider choosing a Roth IRA or 401(k). You pay taxes now on what you contribute to a Roth account, meaning you currently have less cash flow. However, the assets in Roth accounts grow tax-free. In addition, withdrawals are tax-free any time after reaching age 59 ½ and are not subject to RMDs providing additional flexibility (in retirement, the IRS requires you to take Required Minimum Distributions from your traditional IRA and 401(k), which are taxed as income, but in there is an exemption in this case).
Beyond retirement saving strategies, gifting and giving also open doors to reduce your tax burden. From contributing to your children’s 529 plans to making donations with a cause, here are some tax strategies you might’ve been curious about:
Giving to your children via 529 education savings plans allows funds to grow tax-free if withdrawn to pay for qualified education expenses. Depending on your state, you can also enjoy state tax benefits for contributing to a 529 plan. In addition, Secure Act 2.0, which passed in late 2022, allows 529 funds up to $35,000 to be converted to a Roth IRA for that individual if the account has been open for at least 15 years. So opening a 529 account now, even with a small amount, will start that clock ticking.
QCDs allow those currently taking RMDs to give directly to a 501(c)(3) charity from their IRA up to the limit of $100,000. This reduces taxable RMD income dollar for dollar.
Donating appreciated stock directly to a charity allows you to contribute more to your favorite organization. A direct stock donation to your chosen 501(c)(3) charity is valued at market value on the date of transfer for tax purposes. It avoids the capital gains tax you would otherwise pay if you sold the stock and donated the proceeds. Many charities accept stock donations as it is a win-win for both charity and donor.
Increasing your giving in a single year by “bunching” donations or utilizing donor-advised funds (DAFs) allows you to itemize your deductions. Strategically plan to bunch your donations into one year, possibly by making what you consider last year’s and this year’s donations simultaneously to push you over the standard deduction threshold. Also, consider funding a Donor Advised Fund, which allows you to take the donation tax write-off in one year but distribute the funds over time to the chosen charities. This is a beneficial technique when receiving a large one-time bonus.
Timing is a critical factor to consider when developing tax strategies, as it can significantly impact the amount of tax you owe and the effectiveness of your tax planning. Therefore, tax strategies should be considered a year-round priority rather than solely during tax-filing season.
Vigilance for harvesting tax losses throughout the year (rather than waiting until year-end) provides additional tax savings. Selling security at a loss provides a capital loss tax deduction that can match against capital gains from other investments or be taken as a tax deduction of up to $3,000 per year from your tax return. People often focus on harvesting tax losses at year-end. But March 2020, when the S&P fell significantly but later rebounded, demonstrated that taking advantage of these opportunities throughout the year is even more beneficial. A financial advisor by your side monitoring these opportunities is a great resource.
Gifting assets earlier in the year moves the asset growth out of your estate earlier and provides the recipient with that growth sooner for the benefit of both. In addition, an individual can gift up to $17,000 per year per recipient without triggering gift taxes.
While paying taxes is a part of life, taking advantage of these opportunities can help you minimize your tax bill and growth your wealth. Working with a trusted financial advisor who understands your unique circumstances will help you maximize these opportunities.
Implementing long-term tax strategies can be a game-changer in growing your wealth. By taking advantage of the various tax-saving opportunities available, you can reduce your tax burden, free up cash flow, and optimize your financial growth potential. From contributing to retirement accounts to taking advantage of deductions and credits, and making charitable contributions, there are several ways to minimize your tax liability and maximize your financial success. With careful planning and execution, you can secure your financial future and achieve your long-term goals.
Disclosures: Zoe Financial, Inc. ("Zoe Financial") is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. Zoe Financial provides investment advisory services and access to independent registered investment advisers through its platform. The information provided by Zoe Financial is for educational and informational purposes only and should not be construed as personalized investment advice or as an offer to buy or sell any security. All investments involve risk, including possible loss of principal. Past performance is not indicative of future results. Clients should consult with their own financial, tax, or legal professionals before making any investment decisions. The material presented by Zoe Financial is for informational purposes only and is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy, or investment product. Material presented has been gathered from sources believed to be reliable, however Adviser cannot guarantee the accuracy or completeness of such information, and certain information presented here may have been condensed or summarized from its original source. Past performance is no guarantee of future results. Zoe Financial does not provide legal or tax advice, and nothing contained in these materials should be taken as legal or tax advice. SEC Registration does not constitute an endorsement of Zoe Financial by the SEC nor does it indicate that Zoe Financial has attained a particular level of skill or ability. The sole purpose of this material is to inform, and it in no way is intended to be an offer or solicitation to purchase or sell any security, other investment or service, or to attract any funds or deposits. Investments mentioned may not be appropriate for all clients. Before making any investment, each investor should carefully consider the risks associated with the investment, as discussed in the applicable offering memorandum, and make a determination based upon their own particular circumstances, that the investment is consistent with their investment objectives and risk tolerance. Lower expenses do not guarantee better investment performance. Certain information contained herein may constitute forward-looking statements. Due to various risks and uncertainties, actual events, results or the performance of a fund may differ materially from those reflected or contemplated in such forward-looking statements.
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2026 Zoe Financial, Inc. | All rights reserved
Find an Advisor
Retirement Planning
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2026 Zoe Financial, Inc. | All rights reserved
Find an Advisor
Retirement Planning
Disclosure: This page is not investment advice and should not be relied on for such advice or as a substitute for consultation with professional accounting, tax, legal or financial advisors. The observations of industry trends should not be read as recommendations for stocks or sectors.
Investment advisory services are provided by Zoe Financial, Inc. (Zoe Financial), an investment adviser registered with the U.S. Securities and Exchange Commission (SEC). Registration does not imply a certain level of skill or training. Learn more about Zoe Financial on the SEC’s Investment Adviser Public Disclosure website. Brokerage services are provided by Zoe Securities LLC and Apex Clearing Corporation, members of the Financial Industry Regulatory Authority Inc. (FINRA) and Securities Investor Protection Corporation (SIPC). Learn more about Zoe Securities and Apex on FINRA’s BrokerCheck website.
The information in the visuals above is for illustrative purposes only and does not represent an actual user's account, balance, or return. Zoe Financial does not provide tax or legal advice.
Explore the Zoe Wealth Platform with AI
Some of this content may have been generated with the assistance of AI. Please review and sense-check all outputs, as AI tools can occasionally produce incomplete or inaccurate information.
In certain situations, you may be required to disclose that the content was “generated by AI.” Please confirm any specific disclosure or labelling requirements with Compliance.
(646) 680-9244
support@zoefin.com
666 Third Ave, 6th Floor
New York, NY, 10017
Copyright © 2025 Zoe Financial, Inc. | All rights reserved
