Frequently Asked Questions
What's the difference between tax compliance and tax strategy?
Compliance is filing an accurate return each April that records what already happened. Strategy is shaping what happens next: which accounts you draw from, when you convert, how you give. Both matter. Your CPA handles the first. We focus on the second, and we document it so your CPA can work from the full picture.
Do you prepare or file my tax return?
No, that stays with your CPA. Return preparation and filing are their work; ours is the strategy behind the numbers, documented so they always have the full picture.
What is the widow's penalty, and does it apply to me?
When one spouse passes, the survivor files as a single taxpayer with a smaller standard deduction and narrower brackets, which can raise the tax on the same income. Most of what helps has to be set up while both spouses are living.
How does living in Texas change my tax planning?
Texas has no state income tax on withdrawals, pensions, or Social Security, which removes one layer entirely. But it means the federal decisions, RMDs, IRMAA, and Roth timing, carry more weight than they would elsewhere.
What is IRMAA, and how does it affect me?
It's a Medicare premium surcharge based on your income from two years earlier. A large RMD or Roth conversion today can raise what you pay for Medicare later if nobody planned for it.
Can you help reduce the taxes on my Required Minimum Distributions?
We evaluate strategies like Roth conversions, charitable giving, and withdrawal sequencing that may help manage RMD tax impact, and we encourage you to review any decision with your CPA before it's final.
Are you a fiduciary?
Yes, in our fee-based advisory relationships. As a CERTIFIED FINANCIAL PLANNER® professional, Nick is also held to a fiduciary standard under the CFP Board's Code of Ethics.
