For most high-income earners, the single greatest threat to wealth creation is not poor investment performance, but taxes. You have until December 31, 2025, to engage in proactive tax planning for the 2025 tax year. Proactive tax planning utilizes established sections of the tax code to legally redirect income, create deductions, and retain wealth. Proactive tax planning typically incorporates year-end charitable giving strategies into wealth management and retirement planning. The Consortium of Professional Providers has professionals ready to help you retain more of your hard-earned income while supporting the charitable causes that you care about.
The goal of the AIMFD “Life Success Initiative” is to help alumni and scholars achieve true wealth and create the life they want and provide strategies, products, and services to alumni, scholars, employees, and association partners that are superior to those available in the retail marketplace. These strategies are designed to benefit both the AIMFD alumni and scholars as well as the AIMFD organization via revenue sharing when they do business with the CPP preferred partners.
Listed below are steps you can take to lower your taxes and make a gift to AIMFD:
Strategy 1: Request a proactive tax analysis through the CPP preferred provider. Most high-income W-2 medical professionals rely on itemized or standard deductions. However, there are additional IRS- recognized pathways that can:
- Reduce taxable income before year-end
- Reclaim taxes already paid in prior years (up to 3 years)
- Convert future tax liabilities into investable capital
Strategy 2: Review your RMD status- Once you reach age 73 you must start taking required minimum distributions RMD from your tax- deferred accounts, 403B, and traditional IRA’s. Failure to comply can result in hefty penalties. An analysis may reveal an advantage to withdrawal timing. Spreading RMD’s throughout the year rather than taking a lump sum can help manage tax liabilities. We will provide your analysis free of charge.
Strategy 3: Roth conversion- Transferring funds from a Traditional IRA to a Roth IRA can reduce future RMD obligations, as Roth IRAs are not subject to RMD’s. Request our super Roth analysis that will allow you to increase your tax-free Roth retirement income by 60% and depending on age, double your income. We will provide the analysis free of charge.
Strategy 4: Conduct a Retirement Plan Beneficiary Review– On December 20, 2019, President Trump signed the Selling Every Community Up for Retirement Enhancement (Secure Act). The Secure Act eliminated rules that allow non-spouse IRA beneficiaries to stretch required minimum distributions RMDs) from an inherited account over their lifetime (and potentially allow the funds to grow tax free for decades). Instead, all funds from an inherited IRA generally must now be distributed to non-spouse beneficiaries within 10 years of your death.
If you are widowed, divorced, or single and leave your IRAs to your children or siblings, their distribution could push them in to a higher tax bracket. This new law creates a special opportunity for you to make a difference today and save on taxes. You can give any amount (up to a maximum of $108,000) per year from your IRA to AIMFD and/or other charities without having to pay income taxes on the money.
Strategy 5: Donor-Advised Funds (DAFs)- DAFs are flexible charitable giving accounts managed by sponsoring organizations. Donors can advise on investments and distributions while receiving an immediate tax deduction (up to 60% of AGI for cash gifts). The assets in a DAF grow tax-free and you can contribute cash or securities. DAFs are especially useful for “bundling” charitable donations into a single tax year while spreading grants over time.
Strategy 6: Tax lost harvesting- You should have your investment accounts reviewed for underperforming stocks to offset gains of up to $3,000 of ordinary income is a prudent year-end strategy. Donating proceeds from tax loss harvesting adds another layer of tax efficiency. The analysis is provided at no cost to you.
Strategy 7: Consider donating appreciated stocks- High net worth donors can save on capital gains taxes and receive an income tax deduction by donating appreciated securities. This strategy allows charities to benefit from the full value of the gifts. It’s a win- win approach that enhances the impact of the donation.
Strategy 8: Prior year tax recovery- These strategies leverage verified prior year losses or credits caried forward for under the tax code.
- Can be to current or previous tax years depending on structure (3 years prior)
- Typical net result: 30%-33% return within 6-12 months through legitimate refund or credit application.
- Supported under established IRS loss carry forward and Cares Act provisions.
Strategy 9: Tangible Asset & Depreciation Programs- Certain tangible assets such as, real estate improvements, Equipment, or deplorable-to qualify for bonus depreciation or accelerated cost recovery.
- Offsets nearly any form of income such as W-2, 1099, K-1, or capital gains.
- Produces real ownership of an income- producing asset with ongoing cash flow potential.
- 100% depreciation in year one allows major in-year tax reduction while retaining equity.
Strategy 10: Structured ownership review for medical professional business owners-for entrepreneurs, real estate investors, or M&A participants with non-W-2 income, structured ownership arrangements can create significant offsets-
- Establishes or joins A compliant business enter that generates operating losses or deferred income allocation.
- Offsets ordinary business or capital- gains income through active participation
- Provides potential long- term benefits such as capital gains appreciation, reinvested flexibility, and estate-planning advantages.