Nobody enjoys giving the IRS more money than necessary. But guess what? You don’t have to. Smart investors know the tax code is full of opportunities to legally keep more of their cash. So, let’s talk about how you can play the game better in 2025.
Maximize Tax-Advantaged Accounts
Think of tax-advantaged accounts as your financial cheat codes—use them or lose them.
401(k) & IRA Contributions – Every dollar you contribute to a traditional 401(k) or IRA reduces your taxable income. If you’re not maxing out, you’re leaving money on the table.
Roth Conversions – If tax rates go up, paying taxes now on a Roth conversion could mean tax-free withdrawals forever later.
Health Savings Account (HSA) – The ultimate triple-tax-free account: deduct contributions, grow tax-free, withdraw tax-free for medical expenses. Even if you’re healthy, think of it as a stealth retirement account.
Turn Losses Into Tax Wins
Did some of your investments tank? Flip that pain into tax savings.
Offset Capital Gains – Sell underperforming stocks to balance out gains elsewhere.
Carry Forward Losses – If your losses exceed your gains, you can use up to $3,000 per year against ordinary income and roll over the rest indefinitely. No expiration date = long-term tax weapon.
Invest Smarter to Pay Less
Not all investments are taxed the same way. Structure your portfolio strategically:
Hold Investments Longer – Selling before one year? That’s short-term capital gains tax (ouch). Hold beyond a year for lower long-term tax rates.
Use Tax-Efficient Funds – ETFs and index funds tend to trigger fewer taxable events than actively managed funds.
Municipal Bonds – If you’re in a high tax bracket, muni bonds offer tax-free interest income. More income, less tax—sounds good, right?
Give (and Get) Tax Breaks
If you’re feeling generous, charitable giving can be a tax-saving strategy—not just a good deed.
Donor-Advised Funds (DAFs) – Donate a lump sum, get an instant tax deduction, and distribute to charities over time.
Qualified Charitable Distributions (QCDs) – If you’re 70.5+, donating directly from an IRA counts toward Required Minimum Distributions (RMDs) but doesn’t count as taxable income.
Estate & Gift Tax Moves You Shouldn’t Ignore
The current estate tax exemption is high—but who knows how long that lasts? Here’s how to pass on wealth without Uncle Sam taking a big bite.
Annual Gift Exclusion – Give up to $17,000 per person, per year tax-free. Want to help your kids or grandkids? Start gifting.
Trusts & Estate Planning – The right trust structure could shield assets from estate taxes and keep wealth in the family.
Reduce Your Tax Bill with Smart Planning
Why let the IRS take more than necessary? With smart planning, you can reduce your tax bill, invest smarter, and build wealth efficiently. With smart planning, you can keep more, invest smarter, and build wealth efficiently. Taxes aren’t fun, but saving money? That’s always a good time.
Need a tax strategy that fits your investments? Halter Ferguson Financial can help—schedule a consultation today.