Tax planning is the process by which financial assets are analyzed from a taxation perspective to ensure tax efficiency, or reducing the tax liability that may negatively affect the value of accumulated retirement assets. A tax plan encompasses many components, including the selection of tax-advantaged or tax-deferred investments, participation in retirement plans, tax deductions, minimizing estate taxes, and planning for purchases now and in the future. A solid tax plan will also set up distributions of proceeds from retirement plans and investments in a manner that reduces or eliminates tax liability.
Retirement plans are a common way that many people accumulate wealth while minimizing taxes. Retirement plans take many forms, including Traditional and Roth IRAs, 401(k) plans, or employer-sponsored pension plans. With our help, we will help you select the retirement plans that work for your needs now and after you retire. Reducing taxes with a tax plan is a smart way to protect your hard-earned assets and as such is a very important part of the overall retirement planning process.