Tax planning has a reputation for being reactive. File by April 15th, hope for a refund, repeat. For high earners in Charlotte, that approach leaves money on the table every single year.
The executives we work with often assume they have tax planning covered because they max out a 401(k) and work with a CPA. Those are good starting points. But the real opportunity lives in decisions made throughout the year, not at the end of it.
The Timing Advantage
Consider what happens when a large bonus lands in December without any planning in place. That income can push you into a higher bracket, increasing your liability on dollars you earned all year. With enough lead time, you have options: accelerating deductible expenses, contributing to tax-advantaged accounts, or coordinating with charitable giving. Without it, the decision gets made for you.
Year-round planning is not about complexity. It is about keeping your options open.
Retirement Accounts as Tax Tools
For 2026, the 401(k) contribution limit is $24,500, or $32,500 if you are over 50. For business owners and self-employed executives, SEP IRAs and defined benefit plans can allow significantly higher contributions. Every dollar contributed reduces taxable income today while compounding toward future goals. That is a rare combination worth maximizing.
Charitable Giving Done Strategically
Charitable giving is meaningful on its own. It also happens to be one of the more effective tax tools available to high earners.
A donor-advised fund lets you contribute now, take the deduction in the current tax year, and distribute to charities over time. Gifting appreciated securities instead of cash is often even more efficient. When you donate stock that has appreciated significantly, you avoid capital gains on the appreciation and still receive a deduction for the full market value. For someone in a high bracket holding company stock, this can be a substantial difference.
Tax-Loss Harvesting
Market volatility, while uncomfortable, creates opportunities. Selling underperforming positions to offset gains elsewhere reduces taxable income without requiring you to change your long-term investment posture. You can reinvest in similar assets immediately, maintaining your exposure while capturing the tax benefit. When paired with thoughtful timing of asset sales, this strategy can meaningfully reduce your annual tax bill.
A Common Mistake Worth Naming
Many executives assume that because their accountant is involved, their tax strategy is handled. A CPA's primary job is accurate reporting. Tax planning, particularly for executives with stock compensation, deferred income, and investment complexity, benefits from coordination between your tax professional and your wealth advisor throughout the year, not just at filing time.
The goal of tax planning is not to avoid taxes entirely. It is to make sure you are not paying more than you owe, and that every major financial decision accounts for the tax dimension before, not after, the fact.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
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