Many people only think about taxes when the calendar forces them to — in March and early April, when the filing deadline looms. By then, the focus is almost entirely on reporting the past, not shaping the future.

While effective planning can happen at any time of year, summer and early fall often provide a practical window to review your strategy. With more time to evaluate and adjust, you may be able to identify opportunities before deadlines limit your options.

Why Last-Minute Tax Planning Falls Short

If you wait until tax season to think about your strategy, your options are limited. By April, most of the financial decisions that affect your tax bill — investment sales, retirement plan contributions, business expenses — have already happened. Your tax preparer’s role at that stage is primarily compliance, not proactive planning.

When that happens, you’re essentially *accepting the way things are* and simply filing your returns year after year. It’s the equivalent of driving by only looking in the rearview mirror— you’re reacting to what’s already happened instead of navigating toward where you want to go.

The Case for Year-Round Tax Planning

Tax planning done right is not a seasonal activity. It’s an ongoing conversation that considers your lifetime tax bill, not just the number you’ll write on a check this year. By building strategies early — and adjusting them as your circumstances change — you may be able to reduce taxes in ways that have a lasting effect.

Some strategies, however, involve trade-offs. For example, a Roth conversion may provide long-term tax-free income, but it also creates a current-year tax liability. Managing capital gains might reduce this year’s taxes but could affect portfolio diversification. That’s why each decision should be evaluated in the context of your entire financial picture.

Here are some opportunities we may consider with clients in collaboration with their tax professionals:

1. Roth Conversions

Converting pre-tax retirement funds into a Roth IRA can create tax-free income in retirement and reduce future Required Minimum Distributions (RMDs). The timing matters

— executing a conversion in a lower-income year, or before a potential tax rate increase, can make a difference. However, the upfront tax bill must be carefully weighed against future benefits.

2. Capital Gains Management

Selling investments with gains can push you into a higher tax bracket or trigger additional taxes on other income. Planning ahead allows for the possibility of spreading gains across multiple years or offsetting them with losses, though this approach may delay diversification or other investment objectives.

3. Medicare IRMAA Surcharges

Your Medicare premiums may increase if your income crosses certain thresholds. Proactive income management can help you avoid — or at least minimize — these surcharges, but this needs to be balanced with other income planning priorities.

4. Charitable Giving Strategies

From donor-advised funds to appreciated stock donations, there are ways to align generosity with tax efficiency. However, charitable contributions should be driven primarily by philanthropic intent, with tax benefits considered a secondary advantage.

5. Small Business Planning

For business owners, entity selection, retirement plan design, and expense timing can have major tax implications. These decisions may also impact cash flow, administrative requirements, and long-term business strategy.

The Lifetime Tax Bill Mindset

Too often, tax planning is treated like a short-term exercise. But your lifetime tax bill — the total you’ll pay over your entire life — is the number that can have the largest impact on long-term wealth preservation.

For example, some clients may be able to reduce their lifetime taxes through multi-year Roth conversions, capital gains harvesting, and charitable strategies. While these strategies can produce meaningful results, they are not guaranteed and require careful planning to avoid unintended consequences.

Why the IRS Will Never Send You a Thank You Note

Without intentional planning, taxpayers can end up paying more than necessary. The tax code is complex, and many opportunities are *use-it-or-lose-it* each year. If you don’t act before the year ends, the window for that year closes. That said, not every strategy is appropriate for every taxpayer, and acting without full consideration can sometimes increase taxes instead of reducing them.

A Local Perspective: Lima & Bluffton Clients

Here in Lima, many of our clients are business owners, professionals, and families who’ve spent years building their wealth. Some have reached “millionaire next door” status through disciplined saving; others have experienced sudden wealth through a business sale, inheritance, or stock compensation.

In both cases, tax planning often reveals opportunities to preserve more of what they’ve built. For example:

• A local manufacturing business owner reduced their projected lifetime tax bill through a multi-year Roth conversion plan before selling the company. This strategy increased current-year taxes but was expected to provide long-term benefits.
• A family avoided certain Medicare surcharges in retirement by strategically drawing from different account types in different years, though this required careful cash flow
• A professional couple in Lima used a donor-advised fund to front-load several years of charitable giving, creating a large tax deduction in a high-income Their decision was guided by both philanthropic intent and tax efficiency.

These outcomes are client-specific and not guaranteed. They required early engagement and coordination with their CPAs.

How We Build Your Year-Round Tax Plan

Our process is designed to keep you engaged and in control, in coordination with your CPA or tax professional:

1. Discovery & Goal Setting

Understanding your full financial picture, your goals, and your values.

2. Current Year Analysis

Reviewing your current income, deductions, and opportunities using tax planning tools.

3. Scenario Testing

Modeling “what-if” scenarios and weighing both the benefits and potential drawbacks.

4. Action Plan Creation

Outlining specific, time-sensitive actions — while considering the broader financial context.

5. Ongoing Review

Adjusting for changes in tax laws, market conditions, and your personal situation.

Common Myths About Tax Planning

“I don’t need help with my taxes.”

While I’m not a tax preparer, I work closely with highly skilled CPAs who partner with my clients every year. They do an excellent job making sure your returns are accurate and compliant with current laws — which is essential. But simply filing your taxes and taking time to plan strategically with your CPA and financial advisor are two different things.

Strategic tax planning is forward-looking, designed to uncover opportunities before the year ends, and works well when both professionals collaborate to align your tax strategy with your bigger financial goals.

“I don’t make enough to benefit from tax planning.”

You don’t have to be a high-net-worth investor to potentially see benefits from planning ahead. Even families with more modest incomes may find value in strategies like Roth contributions, tax-loss harvesting, and timing charitable gifts. Results vary, and the benefits depend on each household’s unique tax situation.

“I’ll worry about it when I’m closer to retirement.”

By the time retirement is on the horizon, some of the most valuable planning opportunities may have already passed. Addressing tax brackets, retirement account rules, and Medicare thresholds early provides more flexibility — though starting later can still offer meaningful opportunities in certain cases.

The Risk of Inaction

Doing nothing might feel safe, but it often means paying more than necessary. Over time, that can erode your ability to fund retirement, help family, and give back to your community. On the other hand, acting without a coordinated plan can lead to unintended tax consequences. That’s why a collaborative approach with both your CPA and financial advisor is important.

The Bottom Line

Real tax savings are more likely when you’re intentional, proactive, and strategic — not when you’re rushing to meet the filing deadline. Whether you’re a Lima business owner preparing for a transition, a Bluffton professional building wealth, or a retiree wanting to preserve assets for family, a year-round tax strategy may make a meaningful difference.

At Resolute Wealth Advisor, we believe tax planning is an important part of a comprehensive wealth plan. It’s about aligning your money with your goals and values, while being mindful of both the benefits and potential trade-offs.

If you want to explore what a proactive, year-round tax strategy might look like for your situation, I invite you to schedule a conversation today!

**Disclaimer:** This material is for informational purposes only and should not be construed as tax advice. Past results do not guarantee future outcomes. Always consult with a qualified tax professional regarding your specific situation.

The views expressed represent the opinion of Resolute Wealth Advisor, Inc. (RWA). The views are subject to change and are not intended as a forecast or guarantee of future results. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment. Stated information is derived from proprietary and nonproprietary sources that have not been independently verified for accuracy or completeness. While RWA believes the information to be accurate and reliable, we do not claim or have responsibility for its completeness, accuracy, or reliability. Statements of future expectations, estimates, projections, and other forward-looking statements are based on available information and the RWA’s view as of the time of these statements. Accordingly, such statements are inherently speculative as they are based on assumptions that may involve known and unknown risks and uncertainties. Actual results, performance or events may differ materially from those expressed or implied in such statements. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Past performance is not indicative of future results.