Marshall Financial Group strives to provide exceptional services to our clients through our work in investment management and comprehensive financial planning services. Tax planning is an area that is integral to the successful management of a portfolio and the long-term achievement of financial goals.
Many of our clients work with a tax practitioner or CPA for the preparation of their annual tax returns. These professionals will often provide tax advice, but do not always include tax education, planning, or projections. As part of our services, we include tax planning that can help in making decisions that impact the management of investments and other aspects of your financial plan. Using advanced tax software, the most recent complete tax return can be used to identify potential areas for planning.
A few of the areas included in our review are the following:
Marginal Tax Rate
Our planning includes a review of your marginal tax rate. This is the rate of tax paid on the next dollar of income. From this information we are able to determine your tax bracket and can provide insight into income planning, such as taking IRA distributions in a “low-income year”.
Roth Conversion Opportunities
The industry-leading technology we use allows us to find the optimal Roth conversion amount that allows you to build your Roth balances and fill your current marginal tax bracket “bucket”. This finding can be incorporated into a plan to reduce lifetime tax bills and can also be used in legacy tax planning.
Carry Forward Losses
Carry forward losses allow losses from the sales of stocks (that exceed the annual deductible limit) to be used in a subsequent year to reduce future tax liabilities. This can provide an important tax planning opportunity when managing portfolio gains in future years.
IRMAA Surcharges
The Medicare Income-Related Monthly Adjustment Amount can greatly impact retirement income planning. This surcharge is based on income from 2 years prior and is added to Medicare premiums. For example, the 2023 IRMAA surcharge is based on Modified Adjusted Gross Income (MAGI) from 2021. These surcharges can be unexpected expenses that could potentially be reduced or eliminated with adequate income planning.
Tax planning is an integral part of investment management and financial planning. Using the latest technology we are able to provide clients with insights into areas of opportunity and potential concerns regarding income tax planning that can impact long-term financial success. Clients are encouraged to take advantage of this important part of the planning process.
Our advisors remain dedicated to you and your financial success. Please don’t hesitate to contact us with any questions about your portfolio or financial planning.
Marshall Financial Group is an SEC registered investment adviser. Information presented is for educational purposes only and for a broad audience. The information does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and are not guaranteed. Marshall Financial Group has reasonable belief that this marketing does not include any false or material misleading statements or omissions of facts regarding services, investment or client experience. Marshall Financial Group has reasonable belief that the content as a whole will not cause an untrue or misleading implication regarding the adviser’s services, investments or client experiences. Please refer to https://adviserinfo.sec.gov/ for Marshall Financial Group’s ADV Part 2A for material risks disclosures. Past performance of specific investment advice should not be relied upon without knowledge of certain circumstances of market events, nature and timing of the investments and relevant constraints of the investment. Marshall Financial Group has presented information in a fair and balanced manner.