Did you miss your chance to lower your taxes for last year?
Not necessarily.
If you’re like many successful families we work with, you’ve done a great job building wealth, but tax planning often feels rushed between year-end decisions and filing deadlines. The good news? There are still meaningful strategies available before you submit your return.
Here are four strategies worth reviewing before you file.
1. Fund a Traditional or Roth IRA
You can contribute up to:
- $7,000 per person
- $8,000 if you’re age 50 or older
A Traditional IRA may provide a tax deduction (subject to income limits).
A Roth IRA does not offer a deduction today, but grows tax-free and can provide tax-free income in retirement. If your income is too high to contribute to a Roth IRA, a Backdoor Roth IRA may allow you to fund one indirectly.
2. Maximize a Health Savings Account (HSA)
If you’re enrolled in a qualifying high-deductible health plan, an HSA offers one of the most tax-efficient opportunities available.
For 2025 contributions (made before your filing deadline), you can contribute up to:
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$4,300 for individuals
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$8,550 for families
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Plus an additional $1,000 catch-up if age 55+
HSAs offer:
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A tax deduction on contributions
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Tax-deferred growth
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Tax-free withdrawals for qualified medical expenses
Used intentionally, an HSA can become a powerful long-term planning tool, not just a reimbursement account. For more, read 3 Ways to Maximize your HSA.
3. SEP IRA or Solo 401(k) for Business Owners
If you own a business, the opportunity becomes much more significant.
Depending on income, you may be able to contribute up to $70,000 through a:
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SEP IRA, or
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Solo 401(k)
These contributions are generally tax-deductible and can meaningfully reduce taxable income.
4. Consider a Cash Balance Plan
For high-income business owners who are already maxing out retirement plans, a Cash Balance Plan can allow for substantially larger tax-deductible contributions.
In some cases, we’ve seen allowable contributions approach $500,000, depending on age, income, and business structure. These plans can typically be established and funded up until your tax filing deadline, including extensions.
For owners in their peak earning years, this strategy can create powerful tax deferral while accelerating retirement readiness. To learn more, including real world examples, read Cash Balance Plans for Business Owners.
The Bigger Question: Is Your Tax Strategy Coordinated?
Many people approach taxes transactionally, looking for deductions at filing time. But real tax efficiency happens through coordinated planning:
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Aligning your income strategy with your long-term retirement goals
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Structuring business contributions intentionally
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Coordinating with your CPA before deadlines arrive
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Understanding how today’s deductions impact tomorrow’s income
Tax strategy should not be an afterthought. It should be integrated into a comprehensive plan.
Wondering where to start? A conversation with our team is a great first step!
Josh Whelan
CFP®, CLU®, ChFC®
Partner, Financial Advisor
About the Author
Josh sees his profession as a calling, not just a career. His motive for pursing financial planning was very personal. While working on a degree in marriage and family counseling, Josh’s father was diagnosed with multiple sclerosis. Josh decided then and there to change career paths to help his family prepare for an uncertain financial future. Financial planning became his path to serving others.
The “Alterra” name was coined by joining the Latin roots “alter”, the origin of the word “altruism” with “terra” meaning earth or land. This name reflects the company philosophy of “clients before profits” and providing firmly grounded advice.
