Proactive Tax Planning Emerges as a Critical Wealth-Building Tool Amid Looming Tax Law Changes
Tax planning is shifting from a year-end scramble to a strategic wealth-creation imperative. With key provisions of the 2017 Tax Cuts and Jobs Act set to expire after 2025, investors face a narrowing window for optimization. The difference between compounding wealth and surrendering it to preventable taxes hinges on mastering the code.
High-impact strategies include maximizing triple-tax-advantaged HSAs, capturing full 401(k) matches, and strategic Roth conversions. Sophisticated techniques like backdoor Roth IRAs for high earners and tax-loss harvesting gain urgency as the legislative landscape evolves. Education-focused 529 plans offer additional leverage points for preservation.