Tax Planning Strategies for 2019 and Beyond


Consider these strategies for each of the taxpaying hats you wear.

You probably wear many hats that impact your taxes. For example, you may be a retiree who is also a wealth transferor and philanthropist. Each of these hats comes with its own unique tax considerations and potential opportunities – particularly in light of the recent tax overhaul.

To help you identify these opportunities, Suzanne Shier, Chief Wealth Planning and Tax Strategist at Northern Trust, provides an overview of potential tax savings strategies in this three minute video.

5 Potential Tax Planning Strategies

Strategies discussed include the following:

  1. Residents of High-Tax States: While taxes alone should never drive a move, the new federal tax law’s $10,000 cap on the state and local tax deduction provides good reason to evaluate your state tax domicile.

  2. Retirees: A Roth conversion may be a good option for you if you have retirement income, as Roth IRAs are better than traditional IRAs during the distribution phase.

  3. Business Owners: Additional contributions to a retirement account, health savings account, charity or donor advised fund might make sense for business owners with taxable income near the threshold for limitations on the new 20% qualified business income deduction.

  4. Philanthropists: While not without limitations, qualified charitable distributions from traditional IRAs are often an efficient way to give to charity while managing your taxable income.

  5. Wealth Transferors: Annual gifting to your loved ones is a basic but very effective way to transfer assets from your taxable estate over time.