Keep More of What You Earn

Why Tax Planning Matters for Your Finances

Every dollar saved in taxes is another dollar that can go toward your retirement or legacy. While many people focus only on investments, tax strategy is often overlooked—and it can make all the difference. Washington residents benefit from no state income tax, but federal taxes, capital gains, and estate taxes still require careful planning. At Monson Wealth Management, we help clients in Kennewick and throughout the Tri-Cities develop forward-looking strategies so they pay no more than necessary.

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Our Tax-Smart Strategies

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Tax-Efficient Investments

We design portfolios that consider how different assets are taxed. For example, we may recommend holding bonds in tax-deferred accounts and equities in taxable accounts for long-term efficiency.

Roth Conversions

Converting traditional IRAs or 401(k)s to Roth accounts during low-tax years can reduce lifetime taxes. We model scenarios so you know if it’s the right move.

Capital Gains Planning

We look at when to harvest gains or losses strategically to manage taxable income and avoid unnecessary spikes.

Asset Location

Proper placement of investments across accounts helps reduce tax drag and maximize after-tax growth.

Timing of Withdrawals

Coordinating which accounts to draw from and when helps control your tax bracket in retirement. This often means using taxable accounts first and delaying retirement withdrawals until required minimum distributions (RMDs) begin.

Tax-Advantaged Accounts

Maximizing contributions to 401(k)s, IRAs, HSAs, and 529 plans can build wealth while reducing taxes.

Working with Your Tax Professional

We are not a CPA firm, but we complement your tax preparer by focusing on planning ahead. While your CPA looks back to file your returns, we look forward to help reduce future taxes. Our team coordinates with your accountant so that every part of your financial plan works together.

Tax Planning in Retirement

Retirees face unique tax challenges. Required minimum distributions begin at age 73, and Social Security can be taxable depending on other income. We also watch for Medicare IRMAA surcharges that raise premiums if income is too high. Washington retirees don’t face state income tax, but federal rules still apply, and large estates may be subject to the WA estate tax. Our planning helps minimize these impacts so you keep more of what you’ve earned.

Plan Ahead, Pay Less

Taxes are one of the biggest costs you’ll face in retirement—but with planning, you can manage them. Schedule a Tax Strategy Session with Monson Wealth today and find opportunities to save before year-end.

  • Do you prepare tax returns?

    No. We partner with your CPA to provide tax strategy, not filing.

  • Will converting to a Roth IRA save me money?

    It depends on your current and future tax brackets. We model conversions to show the potential long-term benefit.

  • How are Social Security benefits taxed?

    Up to 85% of benefits may be taxable depending on other income. Smart withdrawal timing can reduce this.

  • What about taxes on pensions or 401(k) withdrawals?

    They are usually fully taxable as ordinary income. That’s why planning how and when to withdraw is so important.

  • Can you help with stock options or rental property?

    Yes. We consider all sources of income in your plan and coordinate with your CPA on advanced strategies.