Tackling taxes may not be the highlight of your year, but what if I told you there are savvy ways to make it less daunting? Let’s explore some strategic moves to not only ease the tax burden but also keep more of your hard-earned money.

  1. Maximize Your Work Retirement Plan

Take advantage of your workplace retirement options like 401(K), 403(B), or 457. By contributing up to $23,000 pre-tax, you not only reduce your taxable income but also watch your money grow tax-free until retirement. Self-employed individuals can take advantage of a solo 401(K) or SEP IRA plan.

  1. Explore the Benefits of an HSA Plan

Consider a Health Savings Account (HSA) for pre-tax savings on qualified health expenses. With potential tax-free growth, an HSA can be a smart choice, especially if you have a high deductible health plan. . For 2024, a self-only coverage plan can put away $4,150. For family coverage, you could put away $8,300.

  1. Optimize Roth IRA Contributions

If immediate tax savings aren’t your top priority, contribute up to $7,000 to a Roth IRA in 2024. Enjoy tax-free growth and tax-free distributions at retirement age of 59 ½. With a Roth IRA, you won’t have to worry about what future tax brackets may be.

  1. Practice Tax Loss Harvesting

In a market downturn, leverage Tax Loss Harvesting by selling investments with unrealized losses. Deduct up to $3,000 in investment losses against your ordinary income annually, with additional carryover benefits.

  1. Seize Retirement Catch-Up Contributions

If you’re over 50, maximize catch-up contributions. In 2024, you can contribute an extra $7,500 to your employer 401(K) and an additional $1,000 to your traditional or Roth IRA, providing an extra boost to your retirement savings.

  1. Consider Municipal Bonds and ETFs

For taxable investment accounts, explore municipal bonds for federal tax-free interest if you are in high tax brackets. Also, the use of  low-cost Exchange-Traded Funds (ETFs) offer minimal turnover and potential capital gains advantages while investing in a taxable account.

  1. Invest in Your Child’s Future with a 529 Plan

Secure your child’s education with a 529 college savings account. Enjoy tax-free growth, tax-free distributions for educational expenses, and potential state-level tax deductions. 529 accounts can be used for private education, college, or even trade school.

By strategically navigating these tax-saving avenues, you not only ensure a smoother tax season but also pave the way for a more financially confident future. Remember, it’s not just about filing taxes; it’s about keeping more of your hard-earned money for yourself or family.


Broadway Graham Wealth Partners and LPL Financial do not offer tax advice or services.
A Roth IRA offers tax deferral on any earnings in the account. Qualified withdrawals of earnings from the account are tax-free. Withdrawals of earnings prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Limitations and restrictions may apply.