In our long years of experience at Bernath + Rosenberg, we’ve counseled clients from all walks of life. One aspect we often notice (and attempt to correct) is how the lack of effective tax planning can whittle away wealth over time, especially for high-net-worth and high-income married couples.
For such couples, a $15 million portfolio and high-bracket income cannot be managed in the same manner as a $150,000 account and when they were in the lower brackets. The IRS takes notice and tax inefficiency can cause wealth to drip through cracks without notice.
Solutions include coordinated tax planning by leveraging joint filing benefits, maximizing dual retirement contributions, and coordinating income streams to stay in lower tax brackets. Other techniques include strategic asset location, tax-loss harvesting to offset gains, leveraging estate tax exemption for gifting, and utilizing charitable vehicles to minimize income tax.
Some of our key strategies for high-net-worth couples to coordinate tax planning include:
- Strategic asset location & harvesting: Place tax-inefficient assets (like taxable bonds or high-turnover funds) in tax-deferred accounts, while keeping tax-efficient assets (ETFs and municipal bonds) in taxable accounts. Tax-loss harvesting involves selling investments in taxable investment accounts at a loss to offset capital gains, which can help reduce overall taxable income.
- Entity and income structures for the family business: How a family business is structured matters. Should it be an LLC, a family limited partnership, or an S-Corp? Additionally, how the family owners pay themselves matters too. We work with married family business owners who were then taking all their income as salary. They might have been paying 37% federal tax, plus self-employment tax, on every dollar. Instead, we may have advised structuring their compensation as a combination of reasonable salary, S-Corp distributions, and strategic dividend payments. The result? Often 15-20% less in total tax liability.
- Retirement & deferred compensation maximization: Both spouses should maximize contributions to 401(k)s, 403(b)s, and IRAs (including Roth conversions) to benefit from tax-deferred or tax-free growth potential. Understanding tax law changes, such as the Roth treatment for catch-up contributions (no longer deductible), is essential.
- New standard deductions: New standard deduction rules have gone into effect with last year’s OBBBA legislation. Properly coordinating this deduction (along with added deductions for married senior couples) can save considerable tax dollars.
- Gift and estate tax planning: With the 2026 federal estate tax exemption at $30 million for married couples, proactive planning includes transferring appreciating assets to heirs, utilizing the combined annual gift tax exclusion of $38,000 per couple to each heir. Such gifting over many years can move substantial assets out of an estate with minimal tax implications. As an example, for just two adult children and four grandchildren, using the annual exclusion gift in just two years can move nearly $500,000 out of an estate to loved ones. Payments for education and medical expenses for loved ones (unlimited when paid directly to institutions) can also result in meaningful wealth transfer.
- Charitable giving techniques: Utilizing donor-advised funds, family foundations, or qualified charitable distributions (QCDs) allows couples to donate appreciated assets, avoiding capital gains taxes while maximizing deductions. QCDs are particularly effective for offsetting income tax on required minimum distributions.Another strategy could include bunching charitable deductions between spouses to take advantage of itemizing with the new higher state and local tax deduction maximum.
- Specialized Structures: Use specialized trusts for specific estate planning purposes. Grantor Retained Annuity Trusts (GRATs) can help transition wealth to the next generation while minimizing gift taxes. SLATs (Spousal Lifetime Access Trusts) allow moving assets out of a taxable estate while the spouse retains access to these assets. Charitable Remainders Trusts (CRT) are effective vehicles that can facilitate a couple’s charitable legacy and tax efficiency with their estate plan.
Why Tax Planning Is Different for High-Net-Worth Married Couples
Standard tax preparation between now and April looks to the past. You’ve earned income, you’re reporting it, you pay what you owe. That may work overall when your financial life is straightforward and simple.
But when you’re dealing with multiple large assets, family businesses, and complex income streams, looking at taxes in the rearview mirror isn’t enough anymore. You need a proactive, advanced and forward-thinking strategy that accounts for:
- How asset ownership structures affect your tax liability
- Where you hold different investments for maximum efficiency
- When to realize income or losses for optimal timing
- What entity structures preserve your wealth while minimizing exposure
As an example, if someone owns several commercial properties, holding them by personal name or a single LLC often may not be the most tax-efficient approach. Structuring each property in its own entity with specific ownership configurations could provide flexibility for estate planning, safeguard personal assets, and create opportunities for income shifting that could potentially save tens of thousands annually.
Coordination between wealth managers, CPAs experienced in advanced tax planning, and estate attorneys is vital to manage the complex issues that arise with financial success and continuing to fulfill your life aspirations.
Streamline Your Wealth and Save on Taxes With Our Help
At Bernath + Rosenberg, we help clients integrate multi-faceted strategies into a coordinated tax planning, financial and retirement income plan. By utilizing your income resources, savings, investments, and our intimate knowledge of tax law, our CPAs and CERTIFIED FINANCIAL PLANNER® professionals help clients understand and implement these initiatives into a framework that can help them pursue their unique objectives to enjoy financial independence for themselves and their families. This proactive approach helps clients move forward confidently to realize the aspirations that matter most.
To discover how Bernath + Rosenberg can help make a difference in your life, we encourage you to visit with us for a discussion. Contact us by calling (212) 221-1140, emailing our firm at info@brwealth.com or email Ted directly: tstricker@brwealth.com.
Frequently Asked Questions
Why is tax planning more complex for wealthy married couples?
For high-income married couples, taxes affect far more than annual income. Multiple investment accounts, business interests, real estate, and estate considerations all interact with the tax code. Without coordinated tax planning, inefficiencies can quietly erode wealth over time. A proactive strategy looks ahead, aligning income timing, asset ownership, and long-term goals to preserve more wealth across generations.
How can trusts improve tax efficiency for married couples?
Trusts can play a powerful role in managing taxes and preserving assets when used intentionally. Certain trusts allow couples to transfer appreciating assets out of their taxable estate, support charitable goals, or maintain access to assets while reducing future estate taxes. The right trust structure depends on family dynamics, asset types, and long-term intentions, which is why professional guidance is essential.
When should married couples start advanced tax planning for 2026 and beyond?
Advanced tax planning works best when it begins well before filing season. Starting early allows couples to coordinate investment strategy, retirement contributions, gifting, charitable planning, and entity structures throughout the year. Bernath + Rosenberg helps wealthy married couples integrate tax planning with broader financial and estate strategies, creating a cohesive plan that supports both today’s priorities and long-term legacy goals.
About Ted
Ted Stricker is a partner and financial advisor at Bernath + Rosenberg, a full-service accounting, tax, and wealth management services firm with offices in Monsey, NY, Lakewood, NJ, Cedarhurst, NY, and Miami Beach, FL. The firm demonstrates a personalized approach to custom-tailored solutions and an unwavering commitment to client service. With over 27 years of experience in the financial services industry, Ted manages the firm’s wealth management team, and specializes in designing financial plans for business owners and affluent families. Since joining the team in 2015, he provides practical and sound advice, combining independent approaches and solutions that reflect clients’ personality, lifestyle, and goals.
For the ninth year in a row, Bernath + Rosenberg has been named as one of the leading CPA firms in financial planning by Accounting Today, a publication that receives hundreds of submissions each year and features the Top 150 Firms in the nation. Ted is a CERTIFIED FINANCIAL PLANNER® practitioner and is a member of the Financial Planning Association. To learn more about Ted, connect with him on LinkedIn.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Investing involves risk, including loss of principal. No strategy assures success or protects against loss
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.
Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.
