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Year-End Tax Ideas

Castlepoint Blog: Jake's Take, The Point
November 02, 2021

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Kendall King and Jake Weatherford discuss some year-end tax ideas and the strategies Castlepoint Wealth Advisors uses to help clients save on their taxes.

Many of our clients are already charitably inclined. We often encourage clients to think about the big picture when giving charitably. One strategy we use is a “bunching” strategy where we give up to 5 or 10 years’ worth of their charitable donations to a donor-advised fund in year 1. We then invest this money and end up giving away even more money than would have been possible if they just gave it annually, all the while maximizing tax savings for the client in year one. This strategy is especially important in high tax years and for those in high tax brackets.

Qualified Charitable Distributions (QCD) are another way clients can give charitably and maximize their tax savings. QCD’s are beneficial when a client with a required minimum distribution (RMD) from an IRA does not have an immediate need for extra income. Instead of taking the RMD as income, we can direct the RMD directly to charity and avoid income tax altogether.

Lastly, in this video, we quickly discuss a ROTH conversion. ROTH conversions can be beneficial for people who are retired with large balances in their Tradition IRA’s. Doing a ROTH conversion in this situation can lower future required minimum distributions (RMD’s) and allow the money to grow tax-free forever.

Every client’s situation is different and these strategies do not apply to everyone’s situation. However, we want to empower you and your friends with this knowledge in case you are in one of these situations! The content of this video is developed from sources believed to provide accurate information.

The content of this video is developed from sources believed to provide accurate information. The information in this video is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. All expressions of opinion are subject to change. This content is distributed for informational purposes only, and is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products or services.

Castlepoint Wealth Advisors | Oklahoma Wealth Advisors | Jake Weatherford - Partner & Advisor

Jake Weatherford, CFP®, MBA

Partner & Advisor at Castlepoint Wealth Advisors

Jake Weatherford is a Partner and Wealth Advisor. He is responsible for providing client investment advice and implementing the firm’s financial planning strategies. Jake is also responsible for portfolio modeling and financial projections, which help our clients evaluate potential outcomes of their decisions.

Read more Jake’s Take blog posts and articles.