Quality Financial Planning Announces Tax Strategies to Help High Earners Save on Retirement Taxes
As retirement nears, high earners—such as physicians, business owners, and professionals—often face hidden tax challenges that can erode savings. Mauricio Reyes, founder of Quality Financial Planning, LLC, assists clients in addressing these issues. With over 20 years in financial services, he’s seen how thoughtful tax planning can significantly improve long-term retirement outcomes.
Many high earners are unaware that their income distribution choices in retirement can result in higher-than-necessary tax burdens. Strategic planning, however, can mitigate these taxes and result in substantial savings.
Roth Conversions: A Strategic Approach
One of the most powerful tools available to high earners is the Roth conversion. By converting traditional retirement account funds to Roth IRAs, individuals can reduce their future taxable income and take advantage of tax-free growth. The key here is timing: Roth conversions are most effective when done before one enters retirement, as they allow the individual to pay taxes at a lower rate while keeping their income levels under certain thresholds.
“Many individuals nearing retirement don’t realize how much control they have over their lifetime tax bill,” says Mauricio. “A Roth conversion is one strategy that allows you to convert your future tax burden into a known quantity, potentially reducing your overall tax exposure in retirement.”
While Roth conversions may not make sense for everyone, they can be a game-changer for those who anticipate being in a higher tax bracket during retirement or who have significant assets in tax-deferred accounts.
Retirement Plan Design Tweaks: Small Changes, Big Impact
Another often-overlooked strategy is tweaking retirement plan designs. Many business owners can adjust the structure of their company’s retirement plans, but don’t realize the potential benefits of doing so. By designing tax-efficient retirement plans that focus on high contribution limits, business owners can reduce their taxable income significantly while simultaneously saving for retirement.
“Adjusting the way you contribute to your company’s retirement plan could make a big difference in reducing your current tax burden and growing your retirement nest egg,” says Mauricio Reyes. “By taking full advantage of tax-deferred growth, you can help ensure your retirement is financially secure.”
Mauricio recommends that business owners consult with a financial advisor to explore their options, as the correct adjustments can provide significant tax-saving opportunities.
At Quality Financial Planning, we recognize that business owners and physicians often face unique financial challenges—balancing the demands of running a practice or business with the need to plan for long-term financial security. For clients in this situation, our SUPER 401(k) customized plan may provide a valuable option. It’s designed to potentially maximize retirement savings, offer tax advantages, and create more flexibility than many traditional retirement plans, depending on your specific goals and circumstances.
With the SUPER 401(k), business owners and physicians can potentially:
- Save significantly more for retirement than standard plans allow—often well into the six figures annually.
- Lower taxable income through advanced plan design and contribution strategies tailored to their income structure.
- Customize benefits to reward key employees or partners while still prioritizing personal retirement goals.
- Integrate with tax and estate planning to help preserve wealth and protect assets for the future.
In short, the SUPER 401(k) helps high-income professionals retain more of their earnings, build long-term wealth more efficiently, and gain peace of mind knowing their retirement plan is working as hard as they do.
Timing of Income: Avoiding Unnecessary Taxes
The timing of income plays a crucial role in minimizing taxes during retirement. High earners should be strategic about when they draw from their retirement accounts, Social Security, or other income sources to avoid triggering higher tax rates. For example, withdrawing funds from a traditional IRA or 401(k) can result in an individual being taxed at a higher rate, thereby increasing their overall tax bill.
“A little planning can go a long way. By timing withdrawals or converting certain assets to Roth accounts at the right time, you can avoid unnecessary tax surcharges,” Mauricio adds.
Avoiding IRMAA Surcharges: A Critical Focus for High Earners
For those who rely on Medicare for health insurance in retirement, avoiding IRMAA (Income-Related Monthly Adjustment Amount) surcharges is crucial. IRMAA surcharges apply to individuals whose income exceeds certain thresholds, and these additional costs can significantly increase the price of Medicare premiums.
By carefully managing income during retirement—such as delaying Social Security benefits or strategically withdrawing from tax-deferred accounts—individuals can avoid these surcharges and reduce their overall healthcare costs.
Get Your Complimentary Tax Impact Review
To ensure you’re not leaving money on the table, Mauricio Reyes encourages high earners and business owners to schedule a complimentary tax impact review with Quality Financial Planning. Understanding how these strategies fit into a broader financial plan is essential to taking control of your tax situation.
“Many clients are unaware of the control they have over their tax burdens, especially in retirement,” says Mauricio Reyes. “We help them understand the strategies available, and how these can be tailored to their unique financial situation.”
For those nearing retirement or looking to optimize their tax strategies, a personalized review can help uncover opportunities to save on taxes both now and in the future.
About Quality Financial Planning, LLC
Founded by Mauricio Reyes, Quality Financial Planning, LLC is a registered investment advisory firm based in Florida. Specializing in personalized wealth management, the firm focuses on helping high earners, physicians, and business owners achieve long-term financial security through customized financial strategies.
Disclosure:
All content is for informational purposes only and is not intended to provide tax or legal advice or form the basis for any financial decisions. It is not a projection of current or future performance or an indication of future results. Opinions expressed are solely those of Quality Financial Planning, LLC, and our editorial staff. The information in this material is derived from sources believed to be reliable, but accuracy and completeness are not guaranteed. This does not constitute a comprehensive analysis of the discussed materials. All information and ideas should be reviewed with your adviser before implementation. Quality Financial Planning, LLC, an Investment Advisor, is registered in Texas and Florida. Registration does not imply any specific level of skill or training. Insurance products and services are offered through Reyes Benefits, Inc., an affiliated company. Neither Quality Financial Planning, LLC nor Reyes Benefits, Inc. is affiliated with or endorsed by the Social Security Administration or any government agency.
Media Contact:
Mauricio Reyes
Founder & Financial Advisor, Quality Financial Planning, LLC
Email: info@qualityfinancialplans.com
Website: qualityfinancialplans.com
LinkedIn: Mauricio Reyes on LinkedIn
Tax Planning: Visit our Tax Planning Page