Your wealth requires a sophisticated tax reduction strategy that addresses the diversity and magnitude of your assets. But unfortunately, it’s all too easy to overlook the options available to you—at a steep cost to your net worth. Estate plans can accumulate millions of dollars in unnecessary tax liabilities. On top of that, many retirement plans are poorly timed and structured, leading to substantial tax inefficiencies. These amounts add up to a serious impact on your wealth. Studies find that minimizing tax drag on your portfolio can preserve between 0.5% to 1.5%1 of its value.
Zooming out, the proportion of tax revenue contributed by top earners increased rapidly in recent decades. Data from the IRS shows that the amount of income taxes paid by the top 1% has swelled in particular. From 2001 to 2020, the share paid by this group rose from 33.2% to 42.3%,2 according to an analysis by the Tax Foundation.
Given the current legislative climate of targeting the “wealthy”—a category that spans a broad income range—it’s likely your tax burden will soon rise. But you can act now to leverage the lower personal tax rates and significant estate tax exemptions currently available thanks to the Tax Cuts and Jobs Act (TCJA). This window of opportunity won’t last, however: Many of these key individual tax clauses are set to expire by the end of 2025.
At RWA Wealth Partners, we view tax mitigation as the linchpin of a robust wealth management plan, with the potential to amplify your financial gains and minimize setbacks across your assets, legacy planning, retirement goals and business interests. To stay ahead of taxes, we advise our clients to approach them not as an annual event but as an ongoing opportunity. Here we summarize seven strategies to help reduce your tax liabilities, allowing you to keep more of your wealth.
Personal tax rates are probably going in one direction: Up.
1. Maximize Your Retirement and Health Savings
Taking full advantage of the contribution limits for retirement and health savings accounts (HSAs) is a foundational tax strategy for those with significant assets. By channeling the maximum contributions3 to your accounts, you not only bolster your retirement reserves but also shield a portion of your income from taxes.
|Retirement and HSA Contribution Limits
|401(k) and 403(b)
|Catch-up contributions for 50 and older
|Catch-up contributions for 50 and older
|HSA contribution limits4
|Catch-up contributions for 55 and older
Along with standard contributions, people over a certain age can make catch-up contributions. In 401(k)s, 403(b)s and other employer-sponsored retirement plans, you can make an additional $7,500 catch-up contribution if you are over age 50.
When it comes to IRAs, those age 50 and up can make an additional $1,000 catch-up contribution. This is on top of the $6,500 limit, bringing the total IRA contribution maximum to $7,500 in 2023 ($8,000 in 2024).
HSAs offer another avenue to defer taxes while setting aside funds for future medical expenses. The 2023 limit is set at $3,850 for individuals and $7,750 for families (rising to $4,150 and $8,300 in 2024). You can also make a $1,000 catch-up contribution to your HSA if you’re age 55 to 65. (Please note that once you enroll in Medicare, you can no longer contribute to an HSA.)
If you’re an individual under age 50 in the 37% tax bracket and you take full advantage of your 401(k) and HSA contributions, you could reduce your taxable income by over $26,350 in 2023, translating to nearly $10,000 in tax savings.
If your earned income is too high to contribute to a Roth IRA, maximizing contributions to retirement accounts like 401(k)s and HSAs can help you funnel money into a Roth indirectly. You can later perform a backdoor Roth conversion, moving funds from these accounts into a Roth.
|Roth IRA Income Limitations
|2023 income range
|Married Filing Jointly or Qualifying Widow(er)
|Less than $218,000
|Up to the limit
|Married Filing Jointly or Qualifying Widow(er)
|More than $218,000 but less than $228,000
|A reduced amount
|Married Filing Jointly or Qualifying Widow(er)
|More than $228,000
|Single, Head of Household, or Married Filing Separately
|Less than $138,000
|Up to the limit
|Single, Head of Household, or Married Filing Separately
|More than $138,000 but less than $153,000
|A reduced amount
|Single, Head of Household, or Married Filing Separately
|More than $153,000
2. Use Roth Conversions and Mega Backdoor Roths
Roth IRAs are a hallmark solution for protecting more of your wealth from taxes, and they can be especially beneficial right now. With the federal debt5 reaching a historic high of $2 trillion, the stage is set for tax hikes when the TCJA expires at the end of 2025. Converting IRAs to Roth accounts now lets you pay taxes at today’s relatively low rates and enables you to continue securing future tax-free income and growth on those assets.
In addition, Roth IRAs do not have required minimum distributions (RMDs)6 during the account owner’s lifetime. This is a key advantage of Roth IRAs compared to traditional IRAs and most other retirement accounts. It provides more flexibility with the timing of distributions, and since you’re not forced to take withdrawals starting at age 73, you have the option to leave funds in the Roth IRA for tax-free growth.
The mega backdoor Roth is a great option for high earners who max out their $22,500 employee 401(k) contribution for 2023. It allows you to make after-tax contributions up to the total $66,000 limit7 ($73,500 for age 50 and older) and subsequently convert these to a Roth IRA. This high-level tax-advantaged wealth allocation is beneficial for those seeking extensive tax-deferred growth and future tax-free withdrawals.
When executing a Roth conversion or mega backdoor Roth, you need to consider the following elements.
Timing of the conversion
Ideally you want to convert during years with reduced income—whether from an economic downturn, business challenges or bear markets—or in years leading up to expected increases in personal tax rates, like now. You should seek ways to use deductions and tax credits to offset the tax impact of the conversion. To mitigate the immediate expense, you could consider increasing your charitable giving in the same year or deducting unreimbursed medical expenses exceeding 7.5% of your adjusted gross income (AGI).8 You should note, however, that the medical expense deduction applies to few people.
Impact on tax bracket and deductions
The amount converted to a Roth IRA from a traditional IRA or other pretax retirement account adds to your gross taxable income for the year. For instance, if a $250,000 conversion takes your taxable income from $500,000 to $750,000, this would push you from the 35% bracket into the top 37% bracket. This could phase you out of valuable deductions like the 20% qualified business income deduction, which starts being reduced9 at $182,100 for individuals and $364,200 for married filers.
Immediate cost vs. long-term benefit
Consider the upfront tax cost of converting to a Roth compared to the long-term savings of tax-free withdrawals in retirement. Let’s say you’re age 50 with $2 million in a traditional IRA earning an average annual return of 6% over the next 15 years until retirement at age 65.
By age 65, the account will have grown to around $4.8 million, and you could withdraw the entire balance tax-free in retirement. If the account remained a traditional IRA taxed as ordinary income, you would owe over $1.7 million in taxes on withdrawals at retirement, assuming a 37% rate. In this hypothetical scenario, by paying $740,000 upfront, you more than halved your tax exposure on this retirement account.
However, the advantages of a Roth conversion diminish as you near retirement, particularly if there’s limited time for tax-free compounding. If you were to convert an IRA to a Roth in your early 60s, for instance, there would be fewer years for the investment to grow tax-free. That potentially makes the upfront tax hit less justifiable. If you expect to be in a lower tax bracket in retirement, the immediate tax cost of conversion might outweigh the eventual savings.
Roth IRAs can also be a valuable estate planning tool. Though not exempt from the estate tax,10 they can reduce future liability compared to traditional IRAs. Income taxes paid upfront reduce your taxable estate and your heirs’ obligations down the road. Roth accounts also continue tax-free growth for heirs.
Beneficiaries can withdraw contributions tax-free and stretch out benefits, typically up to a maximum of 10 years,11 by taking minimum distributions. Qualified withdrawals of earnings are also tax-free (unless the inherited Roth is less than five years old, in which case earnings withdrawals may be subject to income tax).12 Still, this is often favorable compared to fully taxable payouts from a traditional IRA. With proper planning, Roth IRAs can enable a tax-efficient transfer of wealth.
With the right timing and tax strategies, Roth conversions and mega backdoor Roth contributions can provide a valuable avenue for minimizing taxes now while also sidestepping potentially higher rates in the future. According to the Tax Policy Center, 23% of taxpayers own traditional IRAs, but only 10% own Roths,13 making them an often overlooked financial planning vehicle.
3. Increase Your Charitable Giving
Charitable donations can offer considerable tax advantages while also enabling you to support meaningful causes. With proper planning, we can align philanthropy with your tax minimization objectives.
Reduce taxable income
One of the major benefits of charitable giving is directly reducing your taxable income. Donating cash or assets lowers your AGI, resulting in lower overall taxes. Certain methods of giving can optimize these tax savings. For instance, if you sell a business or have a large bonus, the taxes on that income could be substantial. Making a significant charitable contribution in that same tax year could help minimize the tax hit.
For immediate deductions, consider making direct contributions to charities through channels like donor-advised funds and private foundations. You can also make qualified charitable distributions (QCDs) from IRAs to causes you care about. IRA owners aged 70 ½ or over can exclude up to $100,000 of QCDs from their gross income per year (or $200,000 per year14 if both spouses meet the age minimum). Starting at age 72, you can also use QCDs from IRAs to lower the taxability of your RMDs.
Gifting appreciated assets
Contributing long-term appreciated assets15 like stocks and securities directly to charities can help you reduce or avoid capital gains taxes. Tax benefits are greatest when donating assets that have significantly appreciated. For assets with modest gains, consider selling and donating the proceeds. In addition, the general rule is you can deduct the full fair market value of capital gain property donated to charity. But there are exceptions requiring the deduction to be reduced to your cost basis instead of fair market value. In general, donating assets with capital gains can allow you to support causes meaningfully while also managing your asset base in a tax-efficient manner.
Structure reciprocal gifts for income and legacy
Some charitable vehicles, like charitable gift annuities and charitable remainder trusts, allow you to receive lifetime income while making a donation. This provides financial benefits along with philanthropy. You can also set up trusts to support charities after your lifetime while optimizing estate tax implications. Charitable lead trusts pay income to selected charities for a set period before assets transfer to beneficiaries.
Be aware of annual limits on charitable deductions based on your AGI. For 2023, you can deduct up to 60% of your AGI for cash donations. At the end of 2025, it’s expected this will revert to 50%. There is a limit of 30% of AGI on donations of appreciated assets. Keep thorough documentation and ensure you adhere to all IRS requirements to claim deductions.
With thoughtful strategy, ramping up philanthropy can reduce your taxes while making a difference for causes you care about. Talk to your advisor about integrating charitable giving into your overall tax and legacy planning.
4. Harvest Investment Tax Losses
Tax-loss harvesting involves strategically selling investments at a loss to offset capital gains and reduce your overall tax burden. This technique can provide several key benefits16 when you have a large portfolio.
Offset capital gains
The most direct benefit is using investment losses to minimize taxes on your capital gains.17 When you sell an investment at a loss, it generates a capital loss that can offset capital gains from other investments you sell in the same tax year. This directly lowers the total capital gains taxes you owe.
For example, if you realize a $2 million long-term capital gain by selling your shares in Company A, and you sell your position in Company B at a $1.5 million loss, you can use that $1.5 million loss to offset $1.5 million of the gain on Company A. This leaves only $500,000 in net capital gains for you to be taxed on, rather than the full $2 million gain.
Strategically rebalance your portfolio
Selling losing positions to harvest tax losses18 can provide an opportunity to rebalance your overall portfolio asset allocation. You can reinvest the proceeds to buy other assets and better align your investments with your goals.
For instance, say you determine your current portfolio is overweight in technology stocks. You hold a position in ABC Tech Corp worth $100,000 that has declined in value and is now at a $20,000 loss compared to your cost basis.
Selling the ABC Tech position to harvest the $20,000 tax loss provides cash you could use to increase your exposure to other assets.
This achieves two goals. First, it harvests a tax loss to offset capital gains. Second, it generates funds to rebalance your portfolio toward your desired asset allocation and risk profile by reducing overexposure to a particular sector, like technology.
Facilitate tax-efficient wealth transfer
When investments with accrued capital gains are transferred to heirs, the cost basis is stepped up20 to the market value at the time of inheritance. This eliminates the embedded capital gains and avoids taxes when the inheritor later sells the assets. However, if the assets have unrealized losses at transfer, you forfeit these losses. By harvesting losses while you are living, you capture the tax benefit of those losses. Meanwhile, your heirs inherit assets with a clean slate.
Consider the wash sale rule
When implementing tax-loss harvesting, be aware of the IRS wash sale rule. It prohibits taxpayers from claiming a loss on a sale of an investment if they buy a “substantially identical” investment within 30 days before or after the sale.21 In simpler terms, if you sell an asset at a loss and buy it back too quickly, the IRS won’t let you claim the tax benefits from the loss.
5. Leverage Trusts and Estate Planning
Your estate plan reflects your legacy. Yet without strategic planning, significant taxes and potential legal disputes can compromise your intentions for wealth transfer and philanthropy. By implementing thoughtfully designed trusts, effective gifting techniques and tax-efficient asset plans, you can ensure that your vision for your family’s future and charitable efforts remains intact for generations.
Reduce your taxable estate
Your tax mitigation strategy should take advantage of the current elevated estate tax exemptions. The TCJA doubled the federal estate tax exemption to over $11 million per individual, with annual inflation adjustments now bringing it to nearly $13 million per person for 2023. This high exemption will probably revert to around $6 million per person in 2026 unless Congress acts.
To maximize your exemption, you can:
- Make lifetime gifts up to the $12.92 million exemption ($25.84 million if married) through the end of 2025. Gifting highly appreciated assets can be an effective approach, but be mindful of capital gains.
- Establish irrevocable trusts funded up to $12 million to remove assets from your taxable estate.
- Make annual exclusion gifts of up to $17,000 per recipient in 2023 without using your lifetime exemption amount. This allows you to give tax-free beyond the $12 million level. The limit for 2024 is $18,000.
Creation of trusts
Trusts allow you to transfer assets out of your taxable estate. Irrevocable trusts in particular can provide estate tax savings. Here are a few key trust structures you can use to improve the tax efficiency of your estate.
Spousal lifetime access trust (SLAT)
We design SLATs for married couples to minimize estate taxes. One spouse gifts assets into the SLAT, potentially using their lifetime gift tax exemption, removing those assets from their taxable estate. The trust then provides the other spouse with access to income or principal, ensuring financial support if needed. Upon the death of the beneficiary spouse, the remaining trust assets pass to the next generation or other named beneficiaries, free of estate taxes. By leveraging the gift tax exemption and providing continued access to assets for the non-donor spouse, SLATs offer both estate tax efficiency and financial security.
Irrevocable life insurance trust (ILIT)
When set up and administered properly, an ILIT becomes the owner and beneficiary of one or more life insurance policies. Upon the death of the insured, the policy proceeds go to the ILIT, which then distributes the funds according to the terms of the trust. (Typically, the funds go to beneficiaries22 free of estate tax.) Because the ILIT is irrevocable, the grantor cannot change the trust’s terms or act as trustee, ensuring the life insurance proceeds stay outside of the grantor’s taxable estate.
Qualified personal residence trust (QPRT)
A QPRT can be a strategic way to transfer property at a tax advantage while still enjoying its use. It allows an individual to transfer a primary residence or vacation home to an irrevocable trust while retaining the right to live in it for a specified number of years. At the end of this term, the property transfers to the beneficiaries, typically children, at a reduced gift tax value. If the grantor outlives the trust term, the property’s value comes out of their estate, reducing potential estate taxes. However, if the grantor dies before the term ends, the property’s full value returns to the estate.
Secure Act implications
The Secure Act was passed in 2019 and included a major change to IRA inheritance rules. Non-spouse beneficiaries who inherit an IRA must withdraw and pay taxes on all assets within 10 years of the account owner’s death. This eliminates the ability to “stretch” withdrawals and tax deferral over the beneficiary’s lifetime.
Here are some ways this could affect estate planning strategies:
- Naming grandchildren as IRA beneficiaries could result in faster withdrawals and larger tax bills if they must deplete the account within 10 years.
- It may be more tax-efficient to leave traditional IRAs to spouses who can roll them over to their own IRA and maintain tax-deferred growth.
- Roth IRAs may be better options to leave to younger beneficiaries since withdrawals would be tax-free.
- It’s important to review beneficiary designations to ensure the 10-year rule for non-spouse heirs aligns with your intentions.
Major life changes
Major life events like marriages, relocations and deaths in the family can affect estate plans and tax strategies. Marrying may provide opportunities to double estate tax exclusions as a couple and may require updated beneficiary designations.
Moving to a new state requires analyzing any differences in estate, gift or inheritance tax rules and community property laws that could alter intended distributions. With a death in the family, you may need to revisit beneficiary designations, asset titling and tax-efficient distribution strategies.
Any life changes should trigger a full review of your plan to ensure it’s aligned with your updated intentions, beneficiaries and tax minimization goals.
Think of the current estate tax breaks as a limited-time offer.
6. Plan a Tax-Efficient Sale or Transfer of Your Business
The current tax code has an expiration date, and the sunset is approaching faster than a filibuster in a contentious Senate debate.
Industry changes have triggered an average 20% annual surge23 in strategic transactions by physician groups over the past eight years. There’s also a growing market for buying and selling law firms.24 If your financial strategy involves the future sale or transition of the business you’ve built, it will require careful navigation of complex tax implications.
The IRS rarely views the sale of a business as the sale of a single, unified asset. For tax purposes, it considers each individual tangible and intangible asset of the business as being sold separately. This means multiple tax classifications are involved.
The tax treatment depends on whether the proceeds from selling each specific business asset fall into the category of long-term capital gains or ordinary income. The difference is substantial: Long-term capital gains are taxed at a maximum rate of 20%, while ordinary income is taxed at the seller’s individual rate, up to the current top rate of 37%.
Tangible assets like equipment or property held over 12 months are usually considered capital gains. But intangible assets like goodwill, customer lists and intellectual property can face ordinary income rates, even if held long term. Thorough planning is required to minimize the higher ordinary income tax exposure when selling business assets.
Consider your business structure
Your business structure affects your tax liabilities.
Under current federal corporate tax rates, all gains on assets for a C-corporation, whether capital or ordinary, are taxed25 at a flat 21% rate. After the asset sale, the C-corp typically undergoes liquidation, distributing the proceeds to its shareholders. This distribution incurs a second layer of taxation for the shareholders. (Keep in mind that there are different rules for sales of stocks.)
For pass-through entities like S-corps and LLCs, there is only one layer of taxation. All items of ordinary and capital gain pass through to the individual owner(s) and are taxed at their individual income tax rates for ordinary and capital gain income. Owners may qualify for the Section 199A qualified business income deduction of up to 20%26 off net business income.
Assets sold piecemeal trigger depreciation recapture at ordinary rates,27 even for C-corps. Maximize entity-level sales to optimize capital gains treatment. Owners of pass-through entities can utilize installment sales28 to spread gains over time. C-corps are limited to the use of installment sales in some cases.
Determine the value of the business
The net value of a business (after accounting for taxes) can be affected by how the purchase price is allocated across its various assets when it’s sold. And the parties involved may not agree on allocation. For example, sellers generally want to allocate more of the price to capital assets, which are taxed at lower capital gains rates, rather than ordinary income assets, which face higher taxes.
Meanwhile, buyers want to allocate more to depreciable assets like equipment or property that allow them to deduct the purchase price for tax savings. Because of these competing incentives, the purchase price allocation typically becomes a negotiating point when finalizing the sales agreement. Proper planning requires assessing these trade-offs to ensure an optimal outcome.
Identify suitable successors
Selling to an internal candidate like a partner, family member or employee may allow for more flexibility in structuring payments for tax efficiency. Installment sales to internal buyers might spread gains over many years so they can be gradually recognized as payments are received. Interest charges on deferred payments29 are also taxed at capital gains rates up to certain limits.
External buyers may prefer lump-sum or shorter-term installment purchases, accelerating your tax liability. However, a strategic buyer may pay a premium valuation, offsetting higher immediate taxes.
If you’re selling to an employee stock ownership plan (ESOP), tax obligations on sales proceeds can be deferred with the right structure. But buyer qualifications and financing abilities may dictate what structures and payment timelines you can implement, affecting tax planning flexibility.
Succession planning for your business
There are multiple tools to consider when transferring a business to your heirs. Here are some options that can offer various tax advantages.
When transferring a business to heirs, one option is to retain ownership of real estate or buildings and lease them back to the business under new ownership. This allows you to avoid realizing depreciation recapture on the property, which would be taxed as ordinary income. The new owners can deduct lease payments,30 while the inherited property receives a stepped-up basis to fair market value. This avoids embedded capital gains taxes when the heirs eventually sell the property.
Intentionally defective grantor trust (IDGT)
Another tax-efficient succession tool is funding trusts during your lifetime and giving gifts of business interests to beneficiaries. IDGTs are irrevocable trusts structured so that you, as the grantor, are still responsible for income taxes on trust assets. The grantor trust status allows you to freeze the value of business interests (for transfer tax purposes) as of the date they are transferred into the IDGT. Any future appreciation in those assets accrues to the IDGT beneficiaries free of additional gift taxes.
A common approach is to sell business interests to the IDGT in exchange for an installment note. This allows you, for tax purposes, to spread recognition of gains over many years as you receive payments.
Of note is that assets transferred to an IDGT will not receive a step-up in basis to the current fair market value31 if they are not included in the grantor’s estate upon death. This can mean a greater income tax hit for heirs. Grantors need to weigh the transfer tax savings from using an IDGT against losing the step-up in basis.
7. Diversify With Alternative Investments
If you qualify, investing in alternative assets can help reduce the tax exposure of your portfolio while providing diversification.
Private equity has historically outpaced the returns of public stocks. One study discovered private equity yielded an 11.4% annualized return,32 almost double the 5.8% return from public equities. Here are some tax benefits of private equity.
Long-term capital gains: Given that private equity investments often span three to five years, the gains usually fall under the long-term category. This classification provides reduced tax rates on these gains compared to short-term investments or ordinary income.
Carried interest advantage: General partners in private equity funds earn “carried interest”—a portion of the fund’s profits. Historically, this income has seen taxation at the capital gains rate, not the higher ordinary income rate, offering potentially substantial tax savings. However, discussions about the validity of carried interest tax treatments continue33 in legislative circles.
Tax deferral benefits: The nature of private equity—with its extended holding periods—means you might defer gains, and taxes, for years. The tax bill arrives only upon an exit event, enabling investments to flourish without an immediate tax hindrance.
Real estate investments not only offer potential appreciation but also present enticing tax benefits.
Depreciation deduction: While a property’s market value might climb, investors can claim depreciation deductions on property improvements. This deduction helps offset taxes on rental income.
REIT tax advantage: Dividends from REITs often qualify for a 20% business income deduction,34 which can effectively trim the tax rate.
1031 exchange: The 1031 exchange allows you to postpone capital gains taxes on a sold property if you reinvest the proceeds in a “like-kind” property.
Qualified opportunity zones: Investing in a fund that is part of this IRS program can help you reduce a capital gains tax liability if you invest within the prescribed time period.
Art & collectibles
The global art market experienced a surge from $441.02 billion35 in 2022 to $579.52 billion in 2023. With an impressive compound annual growth rate of 31.4%, it’s clear that art demand is spiking and supply remains tight, pushing prices upward. Several firms present opportunities to buy shares of one or more artworks, spanning blue-chip to emerging artists. Some firms offer art-backed loans, creating potential monthly income streams for investors.
Long-term capital gains: Art and collectibles that you sell for a profit after a year fall under a distinct capital gains tax rate of 28%,36 but there may be methods to defer that tax. And while it’s higher than rates for many assets, 28% is still below the regular income tax rate for top earners.
Estate planning: You can strategically use art in estate planning. Consider donating art pieces to museums or educational establishments. Such contributions not only bolster cultural institutions but can also reduce the value of taxable estates, with the added perk of potential charitable deductions.
Alternative investments can offer a variety of tax benefits that can enhance overall returns and reduce tax liabilities. By understanding and leveraging these advantages in private equity, real estate, art and beyond, you can strategically diversify your portfolio while optimizing your tax strategy.
How Can You Reduce Your Taxes Today?
Every day is tax day. At RWA Wealth Partners, we recognize that as you build wealth, it’s not solely about what you earn—critically, it’s also about what you keep after taxes. We’re committed to ensuring that you optimize your tax position throughout the year with a calculated, individualized tax approach.
Tax reduction strategies offer one of the most effective tools to keep greater control over your financial outcomes. With a last-minute filing at the start of every new year, you risk paying an enormous tax bill only to realize you left more efficient options on the table.
Don’t miss out on taking advantage of sophisticated techniques that can enable you and your family to keep more of your hard-earned money. Call us today to develop a comprehensive tax strategy that seeks to improve the entirety of your wealth management plan.
1 Pinsker, B. (2023, March 7). Future returns: Is your portfolio dragged down by taxes? Barron’s.
2 York, E. (2023, August 1). Who pays federal income taxes? | IRS federal income tax data, 2023. Tax Foundation.
3 Internal Revenue Service. (2022, October 21). 401(k) limit increases to $22,500 for 2023, IRA limit rises to $6,500.
4 Miller, S. (2022, April 29). IRS announces spike in 2023 limits for HSAs and high-deductible health plans. SHRM.
5 McBride, W. (2023, October 12). Federal deficit grew to $2 trillion in FY 2023. Tax Foundation.
6 Internal Revenue Service. Retirement plan and IRA required minimum distributions FAQs.
7 Long, K. (2023, May 9). How the mega-backdoor Roth works. Journal of Accountancy.
8 Internal Revenue Service. Topic No. 502, medical and dental expenses.
9 Durante, A. (2022, October 18). 2023 tax brackets. Tax Foundation.
10 PKS Investment Advisors LLC. (2017, May 9). Idea: Roth IRAs as an estate planning tool.
11 Iacurci, G. (2023, March 28). Roth IRAs don’t require withdrawals—unless they’re inherited. Here’s what you need to know. CNBC.
12 Internal Revenue Service. Retirement topics – Beneficiary.
13 Tax Policy Center. (2020, May). Who uses individual retirement accounts?
14 Internal Revenue Service. (2022, November 17). Reminder to IRA owners age 70½ or over: Qualified charitable distributions are great options for making tax-free gifts to charity.
15 Internal Revenue Service. Publication 526 (2022), charitable contributions.
16 Internal Revenue Service. Topic No. 409, capital gains and losses.
17 Internal Revenue Service. About publication 550, investment income and expenses.
18 Baldridge, R. (2023, November 14). Can tax loss harvesting improve your investing returns? Forbes Advisor.
19 Vanguard. Tax-saving investments.
20 Internal Revenue Service. Gifts & inheritances.
21 Internal Revenue Service. Application of wash sale rules to money market fund shares (Notice 2013-48).
22 Odgers, M. (2023, August 7). Understanding the irrevocable life insurance trust – The ultimate 2023 guide to ILIT’s. Opelon LLP.
23 Jacoby, D., & Herschman, G. (2023, June 20). Why so many physicians are partnering with private equity. Medical Economics.
24 Stell, C. (2022, October 5). Law firm buying & selling trends. Lawyers Mutual Insurance Company.
25 Abramowitz, L., Needle, W., & Graber, R., Klimanskis, C. (2023, January 17). Introduction to taxation of sale proceeds: C corporation. Mondaq.
26 Internal Revenue Service. Qualified business income deduction.
27 Internal Revenue Service. Publication 544 (2022), sales and other dispositions of assets.
28 Internal Revenue Service. Publication 537 (2022), installment sales.
29 Internal Revenue Service. Interest on deferred tax liability (COR-P-022).
30 Lee & Associates. (2021, August 18). 5 benefits of a sale-leaseback.
31 Trieu, P. (2023, May 11). IRS ruling on intentionally defective grantor trusts. Crowe LLP.
32 Cliffwater. (2023, February 28). Long-term private equity performance: 2000 to 2022.
33 Rappeport, A., Flitter, E., & Kelly, K. (2022, August 5). The carried interest loophole survives another political battle. New York Times.
34 CBIZ. Don’t lose sight of the 20% deduction on REIT dividends.
35 Weisz, M. Top alternative investments trends for 2023. Yieldstreet.
36 Erskine, M. (2020, September 3). Deferring capital gains tax when selling art. Forbes.
This material is for informational purposes only. Our statements and opinions are subject to change without notice. Data and statistics that may be contained in this report are obtained from what we believe to be reliable sources; however, their accuracy, completeness or reliability cannot be guaranteed.
Tax, legal and insurance information contained herein is general in nature, is provided for informational purposes only, and should not be construed as legal or tax advice, or as advice on whether to buy or surrender any insurance products. Personalized tax advice and tax return preparation is available through a separate, written engagement agreement with our wholly owned subsidiary, RWA Tax Solutions, LLC. We do not provide legal advice, nor sell insurance products. Legal services may be obtained through a separate, written engagement via our relationship with Hall & Diana LLC.
Alternative investments are intended for qualified investors only, are speculative and involve a high degree of risk. An investor could lose all or a substantial amount of their investment. There is generally no secondary market, nor is one expected to develop, and there may be restrictions on transferring fund investments. Alternative investments may be leveraged, and performance may be volatile. Alternative investments may have high fees and expenses that reduce returns and are generally subject to less regulation than securities traded in public markets. The information provided does not constitute an offer to purchase any security or investment or any other advice. Before you invest in alternative investments, you should consider your overall financial situation, how much money you have to invest, your need for liquidity, and your tolerance for risk.
All investments carry risk of loss and there is no guarantee that investment objectives will be achieved. Always consult a financial, tax or legal professional before taking specific action.