Tax planning is not a once-a-year exercise. At Aspyre we encourage clients to stay in tax-planning mode year-round, and Spring can be an ideal time to proactively identify opportunities that position yourself for greater tax efficiency for years to come.

It’s tempting to “check the box” on taxes after filing your returns in April. But for high-earning executives facing complex compensation, equity exposure, and multi-state considerations, Spring is when the most valuable planning begins. Decisions you make just after filing last year’s taxes can have far more impact on your 2026 tax outcome than anything you wait to do next April.

Tax Planning Strategy for Executives

1. Start with your income map.

For most executives, income isn’t just salary. It’s bonuses, RSUs, stock options, deferred compensation, and investment income. While federal tax brackets remain the same, income thresholds have expanded, which creates opportunity. This is particularly valuable if you expect your income to vary over the next few years.

For example, realizing capital gains in a lower-income year, or deferring them when a liquidity event is coming, can reduce lifetime tax liability. The same applies to managing exposure to the 3.8% Net Investment Income Tax, which can catch high earners off guard.

2. Rethink retirement contributions under new rules.

If you’re over age 50 and earning $150,000+, catch-up contributions to your 401(k) must now go into a Roth account. That removes the immediate tax deduction but creates long-term tax-free growth. This is simply a shift in strategy. You should already be tax-diversified, so the strategy now is to balance pre-tax, Roth, and brokerage assets to control your tax bracket in retirement.

Also, don’t forget about Health Savings Accounts (HSAs). HSAs remain one of the few “triple tax-advantaged” tools still available. Confirm with your HR department that your pre-tax payroll deductions are set to the current IRS annual limits. Don’t short-change yourself.

3. Evaluate whether itemizing makes sense again.

While Kansas and Missouri aren’t traditionally considered high-tax states like California or New York, many local executives still carry significant property taxes, charitable contributions, and mortgage interest.

Since the SALT deduction cap is temporarily increased, some households may benefit from itemizing, again. However, there are new limitations on high-income deductions so don’t make assumptions. This requires careful assessment.

Charitable giving strategies can also play a dual role in reducing taxable income while aligning with your broader legacy goals, especially if you are donating appreciated securities.

4. Be intentional with inherited assets and estate planning.

If you’ve inherited an IRA in recent years, the 10-year distribution rule is now fully in force. Missing required distributions can result in steep penalties, so coordination is critical. You want to limit distributions being stacked on top of already high-income years.

At the same time, estate tax exemptions remain historically high. For those with concentrated wealth tied up in business ownership or equity compensation this is an opportunity to begin structured gifting strategies. Even if you’re not approaching federal estate tax thresholds, families often benefit from proactive planning to reduce future complexity for heirs.

5. Use “next-gen” planning tools strategically.

Two newer planning opportunities are particularly relevant for high-income families:

• 529-to-Roth IRA conversions: If you’ve overfunded education accounts, these can now become retirement assets for your children without tax penalties. But there are limits.
• Expanded child tax credits and planning vehicles: While phase-outs still apply, structured income planning can help maximize eligibility in certain years.

Like everything related to financial planning, these strategies are not one-size-fits-all tactics. But they can be powerful options when integrated with your broader plan.

Timing Matters More Than Ever for Tax Planning Strategy

The most important takeaway is that many tax provisions are temporary or subject to future changes. So, don’t miss this planning window if you want to make the most of current opportunities. Timing matters.

Tax rules are always changing. New benefits can also have limitations. Yet the biggest risk for executives is failing to coordinate tax decisions across income, investments, and long-term goals. Tax planning needs to be integrated with your total financial plan, along with equity strategy, retirement timeline, and estate plan.

Not sure where to start? Our team is here to help guide you as a part of a comprehensive approach to financial planning. Learn more about tax preparation and planning services with Aspyre Wealth Partners.