We’re past the halfway point of the year. That can make this a useful time to review a few tax-related items before the second half gets busy.
Here are a few areas we believe many clients may find worth a closer look:
Roth Conversions
The extra senior deduction available through 2028 may create additional room to convert traditional IRA funds. Converting when markets are lower can mean moving more shares for a similar tax cost. We believe timing and amount matter, so running the numbers before year-end can be helpful.
Required Minimum Distributions
If you are subject to RMDs, it can be useful to confirm the amount and decide whether to take it earlier or later in the year. Taking it earlier may simplify cash flow planning. Waiting until later can provide more flexibility if other income changes.
Withholding and Estimated Taxes
Summer travel, capital gains, or large distributions can change your tax picture. We believe a quick review of withholding or quarterly estimates now may help reduce the chance of surprises next April.
Charitable Giving
If you are 70½ or older, Qualified Charitable Distributions (QCDs) from an IRA remain one option for giving. They can count toward an RMD and keep the amount out of taxable income.
These moves may not fit every situation. The right approach depends on your income, tax bracket, and overall plan. We recommend confirming any tax-related decisions with your tax professional before taking action.