Tax Planning

Planning Around Taxes All Year, Not Just in April

For high-income earners and business owners, taxes are often the single largest expense. Yet most tax conversations happen after the year is over, when the opportunities have already passed. At JTL Wealth Partners, we treat taxes as a year-round planning consideration that affects your investments, retirement income, charitable giving, and business decisions.

Our approach is simple: look ahead, identify opportunities, and coordinate with your CPA so the right moves happen at the right time. We serve clients across Texas and in 25 other states, from our Plano headquarters and by video and phone.

Important: JTL Wealth Partners and LPL Financial do not provide tax or legal advice. The strategies described here are general in nature; please consult your tax professional about your specific situation.

State Taxes: Texas and the Other States We Serve

Living in Texas means wages, investment income, and retirement withdrawals are not subject to state income tax. That advantage can be significant for high earners, especially those relocating from higher-tax states. But federal income tax, capital gains tax, the net investment income tax, and Medicare surcharges still apply, and Texas property taxes are among the higher in the country. A complete plan accounts for all of them, including homestead exemptions and the over-65 school tax ceiling for older homeowners.

For clients in other states, state income tax rules vary widely, from states with no wage income tax to states that tax wages, investment income, and some retirement income. We build your state’s rules into your projections and coordinate with your CPA, including when you are planning a move from one state to another.

Tax-Aware Strategies We Evaluate

Every situation is different, but these are some of the strategies we commonly review with clients and their CPAs:

• Roth conversions in lower-income years, such as early retirement or a year between jobs.
• Backdoor and after-tax (“mega backdoor”) Roth contributions when your employer plan allows.
• Asset location: holding investments in the most tax-efficient type of account.
• Tax-loss harvesting to offset realized gains, where appropriate.
• Charitable strategies such as donor-advised funds, gifting appreciated stock, and qualified charitable distributions after age 70½.
• Timing the exercise or sale of stock options, RSUs, and ESPP shares.
• Maximizing health savings accounts and deferred compensation plans.

Working Alongside Your CPA

We do not prepare tax returns, and we are not trying to replace your accountant. Instead, we bring the forward-looking financial planning perspective that complements your CPA’s expertise. With your permission, we share projections and coordinate on decisions like Roth conversion amounts, estimated payments, and year-end charitable gifts. If you do not have a CPA, we can introduce you to professionals.

Tax Planning for Retirement

Retirement often creates a window of lower taxable income between your last paycheck and the start of Social Security and required minimum distributions. Under current law, RMDs generally begin at 73 (75 for those born in 1960 or later). Using that window wisely through partial Roth conversions or strategic withdrawals may reduce lifetime taxes and help manage future Medicare premium surcharges. We map this out year by year in your retirement income plan.

Tax Considerations for Business Owners

Owners have more levers to pull than most W-2 employees: compensation structure, retirement plan design, the qualified business income deduction, and the timing of a business sale. We coordinate these decisions with your CPA so that the business and your personal plan work together. Learn more on our Financial Planning for Business Owners page.

A Year-Round Tax Planning Calendar

Good tax planning follows a rhythm. Early in the year, we review the prior year’s return with you to spot opportunities and set savings targets. Mid-year, we revisit income projections, equity compensation vesting, and estimated payments. In the fall, we evaluate Roth conversion amounts, tax-loss harvesting opportunities, and charitable gifts while there is still time to act. Before year-end, we coordinate final decisions with your CPA. This rhythm helps high-income families across Texas and the other states we serve avoid surprises and make deliberate choices instead of rushed ones.

Frequently Asked Questions

Do you prepare tax returns?

No. We focus on forward-looking tax-aware planning and coordinate with your CPA, who prepares your returns and provides tax advice.

Is a Roth conversion right for me?

It depends on your current and expected future tax brackets, your time horizon, and how you will pay the tax. We model the impact and review it with your CPA before you decide.

Does living in Texas mean I don’t need tax planning?

No. Texas has no state income tax, but federal income taxes, capital gains taxes, Medicare surcharges, and property taxes can still be substantial for high earners and retirees.

I don’t live in Texas. Can you still help with tax-aware planning?

Yes. We serve clients in 25 states beyond Texas and factor your state’s tax rules into your plan, in coordination with your CPA.

Can you help with taxes on stock options and RSUs?

Yes. We help you understand how equity compensation is taxed and plan the timing of exercises and sales in coordination with your CPA.

What is a donor-advised fund?

A donor-advised fund lets you make a charitable contribution, potentially receive a tax deduction in that year, and recommend grants to charities over time. It can be useful in high-income years.

Want a proactive plan for taxes instead of a surprise in April? Book a complimentary discovery meeting or call 855-949-4400.