5 Easy Ways to Increase Your Tax Efficiency

Taxes Pull Money Directly From Your Wallet! 

    1. Keep a monthly log of your IRA contributions, charitable donations and anything you believe may have an income tax benefit.  When you do your income taxes, discuss this list with your tax professional.  You are likely to become more and more tax efficient each year.
    2. If eligible to make either a Traditional IRA, a Roth or a non-deductible IRA contribution, then DO SO!  All have significant tax benefits.
    3. For stocks in your “non-retirement” accounts, use either individual stocks, index mutual funds or index exchange traded funds.  This will help avoid large capital gain distributions that can really hurt tax wise. To see how this may be impacting you now, look at Schedule D, then line 13 of your 1040 Tax Return.
    4. Retirees looking to take additional funds for discretionary spending, examine the income tax consequences first to determine the impact on your marginal tax bracket, taxes on your Social Security benefit and the premiums for Medicare Parts B & D.
    5. Have your CPA or tax professional review your completed tax return to determine improvements you can make going forward.


Also, we have two short (90-second) videos on our You Tube Channel regarding Income Taxes and Retirement:

Is Tax Planning Missing in Your Retirement Planning?


How to be Tax Efficient with Your Investments!

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