💡Through a recent financial planning engagement, we uncovered overlooked tax opportunities that could make a meaningful long-term difference:
🔹 The client hadn’t taken a deduction for their 2024 HSA contribution—costing nearly $1,000 in avoidable taxes. They will be amending their return.
🔹 HSA funds were sitting in cash—not invested—missing out on potential long-term growth.
🔹 They were using HSA funds each year for medical expenses, even though they had sufficient bank savings available—missing the chance to let the HSA compound for retirement.
🔹 They want to fully fund daughter’s education but haven't been maximizing Indiana’s $1,500 state tax credit available for 529 plan contributions.
🔹 401(k) contributions were all pre-tax—despite projections showing they won’t be in a lower tax bracket in retirement. Switching to Roth will not increase federal tax rate and will provide needed tax diversification.
🔹 Significantly under withholding federal taxes from pay resulting in taxes owed, plus penalties and interest. They were able to correct this moving forward.
This is the kind of clarity that only comes from looking at the full picture—not just the portfolio.
#FinancialPlanning #TaxStrategy #HSAPlanning #Roth401k #CollegePlanning #PilotWealthAdvisors
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