Tax Planning
Proactive Planning: Preparing for the Future Tax Season
Year-round tax preparation reduces stress during filing season and helps you avoid costly mistakes. Jonathan Penta recommends organizing tax documents monthly throughout the year rather than scrambling as the April deadline approaches.
Planning Ahead: Key Steps
- Organize Records — maintain organized documentation throughout the year
- Update Information — ensure beneficiary designations and account info are current
- Check Withholding — avoid underpayment penalties by reviewing withholding
- Consider Life Events — marriage, divorce, birth, job change all affect your tax situation
Key Concepts and Deadlines
- RMDs: Required Minimum Distributions begin at age 72 (or 73 if you turn 72 after Dec 31, 2022). Failure to take RMDs results in significant IRS penalties.
- Capital Gains: For most individuals, the tax rate on net capital gains is no higher than 15% for the 2023 tax year.
- Record Retention: Keep records supporting income, deductions, or credits until the period of limitations expires for that return.
- Retirement Contributions: Maximize 401(k), IRA, and HSA contributions before year-end deadlines.
Consult with a Professional
Working with a financial professional ensures your tax planning efforts align with your long-term financial objectives. Penta Wealth Management coordinates with your CPA and other advisors to create a cohesive, tax-efficient strategy across all dimensions of your financial life.