Tax Strategy: Legal, Powerful, Essential
Tax planning is legal. Tax evasion is not. The difference between them is strategy and knowledge.
The US tax system is progressive. Higher tax brackets apply only to the income within that bracket.
Capital gains on assets held over 12 months are taxed at lower long-term rates (0%, 15%, or 20%). Holding investments longer can dramatically reduce taxes.
Maximise 401(k) — reduce taxable income by up to $23,000 in 2026
Contribute to an HSA — the only triple tax-advantaged account
Hold investments 12+ months to qualify for long-term capital gains
Tax-loss harvesting — offset gains before December 31
Roth conversion ladder in low-income years
Bunch deductions to alternate between itemizing and standard deduction
The Tax-Advantaged Account Hierarchy
Always capture the full employer match first. It is a guaranteed return.
Triple tax advantage: deductible contributions, tax-free growth, tax-free medical withdrawals.
$7,000 annual limit. Tax-free growth and withdrawals in retirement.
After IRA is maxed, contribute up to the $23,000 annual limit.