Covisum Blog

Tax Day is rapidly approaching, and there are a few ways that financial advisors can be really helpful during this stressful time of year. Many financial advisors know that taxes have a significant impact on their clients, however potential compliance issues often lead to reluctance to talk about taxes. Lumping anything tax-related into "tax advice," is a disservice to your clients. Advisors have a duty to understand, consider and explain the tax consequences of various strategies. To talk tax-efficient planning with clients you don’t have to know all of the complicated interactions between different tax provisions and different types of income. Here are a few ways to can help your clients make retirement strategy decisions in the most tax-efficient way this tax season.

We are well into February, and we’ve reached the perfect time of year to schedule annual reviews for your clients who are still working. There are some opportunities for clients with earned income to clean-up before April 15. One of the most basic ways is through IRA contributions. You can use Tax Clarity® to identify opportunities where IRA contributions can be used to reduce the amount of taxable capital gains.

Hidden Value is a column in ThinkAdvisor where Joe Elsasser, CFP®, answers common questions with insights advisors and their clients may not have considered. This week he highlights the importance of evaluating Medicare surcharges and beneficiaries' future tax brackets when considering a Roth IRA conversion.