Our government wants you to reach your goals, start investing in a Tax-Efficient way today!
*The following is for educational purposes only and should not be considered as tax advice.
529 College Savings Plan
Designed to help families save and invest money in a tax-deferred vehicle to pay for college expenses such as:
Tax Advantages of 529 College Savings Plans
Tax-free withdrawals for qualified expenses
Oregon residents may qualify for up to a
$300 Tax Credit for making contributions
Saving for College
There are many ways to save for college expenses, but some come with potentially huge tax savings!
Saving for Retirement
Let us help you accelerate your retirement savings with tax-advantaged accounts.
Types & Treatment of Tax Preferenced Accounts
Growth in the acccount
Pre-tax or Tax Deductible
Health Savings Accounts (HSAs)
Traditional Retirement Accounts
Roth Retirement Accounts
529 Plans (College or ABLE)
Why choose a Roth IRA?
If you expect to be in a lower tax bracket now and a higher tax bracket in retirement.
If you need the flexibility to withdraw your contributions at any time without owing taxes or penalties.
Why you might avoid a Roth IRA?
Roth IRA contribution limits are reduced or eliminated at higher incomes.
Why choose a Traditional IRA?
If you expect to be in a higher tax bracket now and a lower tax bracket in retirement.
If you need the tax-break today.
Why you might avoid a Traditional IRA?
There are Required Minimum Distributions
There is a 10% tax penalty for early withdrawals for non-qualified reasons.
Employer Sponsored Accounts
What are Employer Sponsored Accounts?
These are opened only by employers and their specifics vary
Try to contribute enough to get the max. match, at least, if offered.
You cannot contribute if you leave employer
If your employer doesn't offer a retirement program..
You might be eligible for Oregon Saves
Saver's Tax Credit
You might be able to receive tax credits for making contributions to qualified retirement plans and Able accounts.
Saver's Credit Income Limits (2022)
Up to 50%
$0 - $20,500
$0 - 30,750
$0 - 41,000
$30,751 - $33,000
$41,001 - $44,000
$22,001 - $34,000
$33,001 - $51,000
$44,001 - $68,000
more than $34,000
more than $51,000
more than $68,000
Triple Tax Benefits
Contribute pre-tax money
Enjoy tax-free growth
Withdrawals for qualified uses are tax-free
The "Health IRA"
It can be used to help boost retirement savings
Contributions can often be invested into funds
No Required Minimum Distributions (RMDs)
Uses include: co-pays, deductibles, etc.
Unused funds rollover to the next year
You own it so it's portable
It is an arrangement through your employer that lets you pay for many out-of-pocket medical expenses with tax-free dollars.
What's the advantage to the employee?
Contributions are pre-tax
Can make incremental contributions, but can still use the full annual amount right away
What's the advantage for employers?
Can choose to contribute or not
Can choose to allow some unused money to rollover
The employer funds and owns the arrangement.
What's the advantage to the employee?
Employer contributions are not part of wages, so they are tax-free
Unused money may rollover, employer decides how much
What's the advantage for employers?
Contributions are tax deductible
Can choose which qualified medical expenses money can be used for
Can choose if money rolls over at the end of the year
Saving for Healthcare
Tax-advantaged accounts that allow you to save specifically for medical costs
Worried About Capital Gains
From the sale of a rental, to the sale of stocks or bonds - we have solutions for you.
Have you considered a 1031 Exchange?
A 1031 Exchange uses a Qualified Intermediary to defer taxes on the sale of real-estate by reinvesting the proceeds within a limited window of time.
The problem with 1031 exchanges today is...
finding appropriate new investment properties within the 45-day window.
Here are some passive solutions that can bypass this problem
allowing you to defer or even eliminate some capital gains taxes (OZF) .
They take the place of direct property ownership.
Traditional Direct Property Ownership
1031 Exchange to Delaware Statutory Trusts (DSTs)
DSTs allow for fractional ownership of a portfolio of properties, which qualifies as replacement property in a 1031 exchange.
Advantages of DSTs
No management responsibilities
Access to institutional-quality property
Limited personal liability
Lower minimum investments
Eliminates "boot" (left over capital gains)
1031 Exchange to UpREITS
UpREITs use a 721 Exchange to allow an investor to defer capital gains taxes while relinquishing control (Operating Partnership Units) of a property to acquiring shares in a REIT, this can result in a more liquid and easily divided investment.
Advantages of UpREITS
True Passive Investing
Opportunity Zone Funds
Taxpayers who invest in Qualified Opportunity Funds can temporarily defer tax on the amount of eligible gains they invest.
Here are a few things you will need to know before you get started with a 1031 Exchange:
Loan-to-value ratio on the property
Do you have co-owners of the property?
Have you sold a business in the past 180 days?
Is there 1031 language in the sales contract?
Is the property under contract?
If the property sold, is there a closing date scheduled?
Own a Business
Save money while providing you and your employees
Healthcare, Retirement, Long-term Care
The Small Business Health Options Program (SHOP) is for small employers who want to provide health and/or dental insurance to their employees.
You may qualify for the Small Business Health Care Tax Credit that could be worth up to 50% of the costs you pay for your employees' premiums
See if you qualify for the tax credit:
You have fewer than 25 full-time equivalent (FTE) employees
Your average employee salary is about $50,000 per year or less
You pay at least 50% of your full-time employees' premium costs
You offer SHOP coverage to all of your full-time employees. (You don't have to offer it to dependents or employees working fewer than 30 hours per week to qualify for the tax credit.)
Long-Term Care Insurance
By paying your tax-qualified LTC Insurance premiums through your business, you'll benefit in several ways:
1. Your premiums will be deductible as a business expense within certain limits (see below)
2. Your premiums will not be subject to payroll taxes
3. You will not be subject to the 10% threshold in order to deduct
Long-Term Care Insurance Tax Benefits (Based on Age)
Age before the close of taxable year
Premium Deduction Limit 2022
40 or younger
between 40 - 50
between 50 - 60
between 60 - 70
70 or older
up to $5,640
We can help set-up and manage retirement accounts for your employees. Not only will this help you hire and retain quality talent, it also has the following tax benefits:
Contributions to qualified retirement accounts by an employer on behalf of the employee are tax deductible.
Higher contribution limits than IRAs allowing for maximizing your tax advantages.
Own a Home
Upgrading energy efficiency in your home may lead to energy savings, 0% APR loans, and tax credits
SUB: $1/SF not to exceed 50% of cost or $4,000 0% interest loan
EWEB: $0.80/SF not to exceed 50% of cost or $4,000 0% interest loan
EPUD: $1/SF not to exceed 50% of cost or 0% financing up to $5,000
Federal Tax Credit: 10% of the cost, up to $500 (not including installation)
*Incentives vary depending on utility provider*
Need to Buy a Car
Purchasing an Electric Vehicle may provide you with cost savings while also qualifying for tax credits
Ask us how this may be incorporated into your financial plan!