This week’s Tuesday Tip addresses tax planning for women facing new beginnings. Please watch the video below to learn more. If you would like a free review of your current financial situation, please use this link to schedule a free call. You can find an edited transcript below the video.
Tax Planning for Women Facing New Beginnings. That’s the subject of this week’s Tuesday Tip.
Hello and welcome. Life is full of new beginnings, and whether you’re embarking on a fresh journey, navigating the transition of becoming an empty nester, or finding your way after a significant life change such as divorce or widowhood, it’s essential to be informed and prepared.
I’m Phil Weiss of Apprise Wealth Management, and today, I want to talk to you about something incredibly important—tax planning for women facing new beginnings. Women, in particular, often juggle many responsibilities, and tax planning might not always be at the forefront of their minds. But with the current tax law set to sunset at the end of 2025, now is the time to take action.
In 2017, the Tax Cuts and Jobs Act brought about significant changes to our tax system. However, many of these provisions are temporary and will revert to previous tax laws in 2026 unless new legislation is passed.
What does this mean for you? It means the tax rates, deductions, and credits we currently enjoy may change. For instance, tax rates for many will increase, the standard deduction will decrease, and personal exemptions, which were eliminated, might return. These changes could significantly impact your financial situation.
Some Preparatory Steps
Here are a few steps you can take to prepare for tax planning for women facing new beginnings:
- Review Your Current Tax Situation:
Understand your current and projected tax bracket and deductions. This will help you gauge how potential changes might affect you. - Maximize Contributions to Retirement Accounts:
Consider increasing contributions to your 401(k) or IRA. These contributions can lower your taxable income now and grow tax-deferred for your future. If you are early in your career, or taxed at a relatively low rate, you might also consider contributing to your Roth 401(k) or IRA instead of a conventional 401(k) or IRA. - Consider Roth Conversions:
If you’re in a lower tax bracket now, converting traditional IRA funds to a Roth IRA could be beneficial. You’ll pay taxes at the current lower rate and enjoy tax-free withdrawals in retirement. - Plan for Charitable Giving:
If you plan to make significant charitable donations, consider doing so before the tax laws change to maximize your deductions. You might also consider bunching deductions to receive a bigger benefit. - Consult a Financial Advisor:
Every situation is unique. A financial advisor can help you create a personalized plan that aligns with your goals and the upcoming changes in tax law.
Concluding Thoughts
Tax planning for women facing new beginnings can be complex, but you don’t have to navigate it alone. At Apprise, we’re here to support you every step of the way. Together, we can help you build your new beginning on a strong, financially sound foundation.
Reach out to us today to schedule a consultation. Let’s help make your future as bright as possible. Thank you for watching, and remember, tax planning for women facing new beginnings is an opportunity for growth and prosperity.
Thank you for listening and have a great day.
For more information about Tax Planning 2025, please refer to this blog.
Our practice continues to benefit from referrals from our clients and friends. Thank you for your trust and confidence.
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For firm disclosures, see here: https://apprisewealth.com/disclosures/
Phil Weiss founded Apprise Wealth Management. He started his financial services career in 1987 working as a tax professional for Deloitte & Touche. For the past 25+ years, he has worked extensively in the areas of financial planning and investment management. Phil is both a CFA charterholder and a CPA.
Located just north of Baltimore, Apprise works with clients face-to-face locally and can also work virtually regardless of location.
