Proactive Tax Planning: For Families

Key Takeaways Proactive tax planning is not just about filing taxes — it is about coordinating investments, retirement accounts, charitable giving, and deductions throughout the year to improve long-term outcomes. Many families overlook valuable tax strategies such as HSAs, Roth IRAs for working children, tax-loss harvesting, QCDs, and deduction bunching, even though these tools can potentially reduce long-term tax drag. Tax efficiency becomes increasingly important near and during retirement, especially when managing Required Minimum Distributions (RMDs), charitable giving, healthcare costs, and long-term care planning.  In this episode of Purpose Driven Finances, Allan Malina discusses proactive tax planning strategies families may want to consider before year-end. The conversation focuses on how tax planning is often treated as a once-a-year event instead of an ongoing financial discipline tied directly to retirement planning, investing, charitable giving, and long-term stewardship. The episode explores several commonly overlooked strategies, including tax-loss harvesting, Qualified Charitable Distributions (QCDs), charitable trust structures, maximizing retirement account contributions, and funding Health Savings Accounts (HSAs). Allan also discusses the long-term opportunity of Roth IRAs for working children and why early tax-free compounding can become a powerful multigenerational planning tool. Additional topics include deduction bunching strategies and long-term care insurance premium deductions, particularly for retirees seeking ways to improve tax efficiency later in life. Throughout the discussion, Allan emphasizes that tax decisions should work together with broader financial planning and investment positioning rather than being handled in isolation. The first segment of the show also reviews current market conditions, including weakness in NVIDIA, growing competition from Google’s AI chip development, expectations for additional Federal Reserve rate cuts in 2026, and the potential impact of Quad 4 conditions on portfolios and year-end market behavior. This episode is for educational purposes only. Servus Capital Management does not provide tax or legal advice. Consult your CPA or tax professional regarding your specific situation. FAQ What is tax-loss harvesting? Tax-loss harvesting involves selling investments at a loss to offset taxable gains. In some cases, unused losses may also carry forward into future years. What is a QCD? A Qualified Charitable Distribution (QCD) allows eligible IRA owners to donate directly from their IRA to charity, potentially reducing taxable income while satisfying Required Minimum Distribution obligations. Why are HSAs considered powerful long-term planning tools? Health Savings Accounts offer triple tax advantages: tax-deductible contributions, tax-deferred growth, and tax-free withdrawals for qualified medical expenses. Can children contribute to a Roth IRA? Yes. Children with legitimate earned income may qualify to contribute to a Roth IRA, creating the opportunity for decades of tax-free compounding. What does “bunching deductions” mean? Bunching deductions means intentionally grouping deductible expenses into one tax year so deductions exceed the standard deduction threshold and allow itemization. Are long-term care insurance premiums tax deductible? In certain situations, portions of qualified long-term care insurance premiums may qualify as deductible medical expenses, depending on age and IRS rules. About the Host Allan Malina is a fiduciary financial advisor and the founder of Servus Capital Management, a fee-only registered investment advisor serving Lynchburg, Forest, and Central Virginia. He specializes in retirement planning, investment management, and disciplined portfolio positioning for retirees, professionals, families, and business owners seeking purpose-driven financial guidance.