The Joseph Group

Planning Opportunities During Tax Season

January 26, 2024

To Inform:

The start of a new year brings a lot of self-reflection, new year resolutions, and most excitingly…tax season! All joking aside, even though we are already a few weeks into 2024, did you know that there are still ways to reduce your taxes for 2023? The deadline to act is the tax filing deadline.

2023 planning opportunities in 2024

  • Health Savings Account Contributions – If you have a high deductible health insurance plan, you can contribute to a Health Savings Account (“HSA”) and receive a tax deduction if using after-tax cash. Please keep in mind that there is a maximum amount you can contribute each year, but in the future, you will be able to use these funds for qualified medical expenses with zero tax consequences.
  • Traditional IRA & Roth IRA Contributions – If you are eligible, you have until your personal tax return deadline to make either type of IRA contribution for 2023.
  • Employer Retirement Plan Contributions – Generally speaking, if you are a business owner and can make employer contributions, you have until the tax filing date of the business (which may be later than your personal tax return) to make this type of contribution.

Most importantly, keep track of all your contributions or other potential tax saving actions (like charitable giving) and make sure your accountant or CPA is aware. Additionally, as a CPA myself, I know your tax preparer will appreciate receiving your documents as soon as possible as this is a very busy time for them.

Looking forward to 2024

As you wrap up 2023 and move it to the rear-view, January is also a great time to start thinking about what 2024 is going to look like. Each year is a little different for everyone whether it includes career changes, retirement, additional planned giving, volunteering opportunities, or maybe even children and grandchildren. Whatever the case may be, we encourage everyone to think of the changes that may need to be made and new opportunities that may arise with your new situation.

Let’s think about a few examples:

  • Retirement Contributions – Have you updated your contribution amounts for your IRA, 401(k), HSA, etc. based on the new contribution limits in 2024?
  • Cash Flow Changes – Are there any changes in your cash flow that would allow for planning opportunities or updates? Maybe a large sale of property could encourage charitable giving to offset some of the taxes. Maybe retirement allows for Roth Conversion opportunities because of a low-income tax year.
  • Required Minimum Distribution (“RMD”) – If you are turning 73, you will be required to withdraw a specific amount from your IRA and Retirement Plan accounts.
  • 2024 Tax Payments – Have you thought about how you will be paying taxes for 2024? Will you withhold from IRA distributions? Will you make quarterly estimated tax payments? Or are you withholding enough from your regular paycheck?

Everyone’s situation is unique and there are many opportunities to maximize the efficiency of your dollars such as:

  • What is the best way to make your retirement/investment contributions?
  • How is your portfolio allocated and invested based on your lifestyle?
  • Which accounts will be used to fund your lifestyle to minimize tax consequences?

These are just a few of the many questions we want to help answer so as always, please contact your Joseph Group advisor if you have any questions. We love hearing about any updates and working through your financial plan.





Written by Jacob Kipi, CPA, Wealth Advisory Associate