Tax planning strategies for Texas retirees
Our year-round approach aligns investing and withdrawals with the tax code, using asset location, Roth conversions, and portfolio management with the goal of more of your stays working for you in retirement.
How tax planning fits every choice
Integrating Tax Into Decisions
Every financial move has a tax angle. Wealth Solutions weaves year-round tax planning into investing and retirement decisions so more of your money stays working for you in Austin, The Woodlands, Houston, Dallas, San Antonio, and Corpus Christi. We coordinate with your CPA, anticipate brackets and thresholds, and align moves with your goals and timeline. This approach connects directly with retirement income planning and the cadence of your withdrawal strategies to keep surprises off your return.
Active management vs. passive
Why we choose active oversight
Index funds have a place, but retirees in Texas often benefit from active decisions that balance income needs with risk. We don’t chase every market move; we make informed adjustments to manage drawdowns and capture opportunity. This hands-on approach is led by Richard Blair and reflected in our proprietary funds as well as individual securities where appropriate.
From paperwork to portfolio in one plan
How the rollover works
Review your accounts
We inventory plans and balances, including any 401(k), 403(b), SIMPLE, or governmental 457 assets, plus employer stock considerations.
Compare options
Keep funds in the old plan, roll to a new employer plan, or move to an IRA. We outline costs, creditor protections, and flexibility.
Choose IRA and investments
If an IRA is best, we set up the account and design an allocation that fits your broader plan.
Handle the paperwork
We coordinate a trustee-to-trustee transfer to avoid withholding and the 60-day rule.
Reinvest and align
Once assets arrive, we implement the strategy and connect it to your household plan in your client portal.
Tax-Efficient Investing
Structure portfolios for after-tax results
Asset location matters. We often place tax-inefficient assets like higher yielding bonds or REITs inside IRAs, while keeping broad stock index exposure in taxable accounts for potential qualified dividends and lower turnover. We manage gains intentionally, seek long holding periods, and coordinate with our proprietary strategies so realized taxes support your plan rather than derail it. When markets shift, we harvest losses to offset gains and rebalance with cost in mind.
Roth Conversions
Pay smart now to pay less later
A Roth conversion moves funds from a Traditional IRA to a Roth IRA. You pay tax today, then enjoy tax-free growth and withdrawals later. We model conversions during lower-income years, before Social Security starts, or after a market dip to reduce the tax hit. Conversions can also trim future RMDs and leave tax-free assets to heirs. For estate coordination and beneficiary impact, see estate planning for the broader picture.
Managing Capital Gains
Informed capital gains decisions
We review taxable accounts throughout the year to capture losses that offset gains, realize gains in lower brackets when available, and avoid short-term surprises. The goal is steady after-tax progress, not just paper returns.
Pull from the right places
Retirement Withdrawal Tax Strategy
We align the order of withdrawals with your bracket, Medicare IRMAA, and Social Security thresholds. That can mean spending taxable assets first, then tax-deferred, while preserving Roth for later. The mix changes as markets and laws change, so we revisit it during reviews with your advisor and tax professional.
Tax Law Changes & Coordination
Working with your CPA
Rules evolve. Our team tracks proposed changes and sunsets so you can act before deadlines. We prepare summaries for your CPA and coordinate moves like estimated tax payments, QCDs, or timing of conversions so filing season is routine, not stressful.
Frequently Asked Questions
Frequent Questions on Tax Planning
What are the tax rules on investment advisory fees now?
Since recent tax law changes, most individuals cannot deduct investment advisory fees on Schedule A. However, certain entities and trusts may still deduct them, and paying eligible fees from an IRA can effectively use pre-tax dollars. We’ll show the most efficient way to handle fees in your situation and coordinate with your CPA.
Should I do a Roth conversion this year or wait?
It depends on your current and future tax brackets, Medicare IRMAA thresholds, and timing of Social Security and RMDs. We typically model partial conversions in lower-income years or after market pullbacks to reduce the tax cost and improve future tax-free flexibility.
How do Qualified Charitable Distributions lower my taxes?
If you are at least 70½, a QCD lets you send money directly from an IRA to a qualified charity. The amount can count toward your RMD but is excluded from your adjusted gross income, which may help with Medicare brackets and the taxation of Social Security. We handle the paperwork and confirm eligibility.
What is the best way to manage capital gains each year?
We review taxable accounts to harvest losses that offset gains, realize long-term gains in lower brackets when available, and avoid short-term gains where possible. We also use asset location and holding periods to keep your after-tax return on track.
How can I avoid Medicare IRMAA surcharges in retirement?
IRMAA is based on your modified adjusted gross income from two years prior. We plan withdrawals, Roth conversions, and capital gains with those thresholds in mind, sometimes spreading income across years or using QCDs so your MAGI stays in a target range.
Disclaimer
Our firm is not licensed to offer tax preparation. We offer tax strategies related to investing and retirement income. Consult your tax advisor regarding your situation. Converting an employer plan account or Traditional IRA to a Roth IRA is a taxable event. Increased taxable income from the Roth IRA conversion may have several consequences including but not limited to, a need for additional tax withholding or estimated tax payments, the loss of certain tax deductions and credits, and higher taxes on Social Security benefits and higher Medicare premiums. Be sure to consult with a qualified tax advisor before making any decisions regarding your IRA.