Tax Planning - Houston, Katy, Brookshire
Smart Tax Strategies for Employees, Entrepreneurs & Gig Workers
At MT Bachani CPA PLLC, we specialize in helping employees, business owners, and gig workers create effective tax planning strategies to maximize their savings and secure a financially sound future. Tax planning is not just about compliance—it’s about leveraging opportunities to save for retirement, reduce taxable income, and achieve long-term financial goals.
At MT Bachani CPA PLLC, we specialize in helping
- employees,
- business owners, and
- gig workers
create effective tax planning strategies to maximize their savings and secure a financially sound future.
Tax planning is not just about compliance—it’s about leveraging opportunities to save for retirement, reduce taxable income, and achieve long-term financial goals.
Why Tax Planning is Essential
Tax planning offers significant benefits:
- Reduce current taxable income through retirement contributions.
- Save for retirement with tax-deferred and tax-free options.
- Avoid higher tax brackets during retirement with strategic withdrawals.
- Leverage employer contributions and maximize allowable deductions.
- Ensure compliance with IRS regulations while optimizing financial outcomes.
Retirement Planning Options
For Employees
If your employer offers a qualified retirement plan like a 401(k), you can take advantage of:
- Employee Contributions:
Contribute a portion of your income to reduce your taxable income. Those aged 50 or older can contribute additional amounts through catch-up contributions. - Employer Contributions:
Many employers match a percentage of your contributions, which are not taxed as income to you. - Tax-Deferred Growth:
Contributions and their earnings grow tax-free until you withdraw them in retirement. - Strategic Withdrawals in Retirement:
By spacing out withdrawals, you can stay within lower tax brackets and reduce overall taxes.
Schedule Free Tax Consultation
For Business Owners and Gig Workers
Self-employed individuals have unique opportunities to save for retirement. The best plans include:
- Solo 401(k):
- Employee Contributions: The same limits apply across all plans.
- Employer Contributions: You can contribute a percentage of your net self-employment income, up to the overall contribution limits.
- SEP-IRA:
- Contribution Limit: Based on a percentage of your net self-employment income, capped at the maximum annual limit.
- Simple to set up and ideal for business owners or gig workers without employees.
- Roth IRA:
- Contributions: After-tax, with tax-free withdrawals during retirement.
- Ideal for those within income eligibility limits.
Tax Savings Scenario
Here’s how maximizing retirement contributions impacts your taxes as a single filer:
| Category | Without Contributions ($) | With Contributions ($) | Difference ($) |
|---|---|---|---|
| Total Income | 500,000 | 500,000 | 0 |
| Retirement Contributions | 0 | 139,500 | -139,500 |
| Taxable Income | 500,000 | 360,500 | 139,500 |
| Tax Liability | 124,529.50 | 79,889.50 | 44,640 |
Summary:
By contributing $139,500 to your retirement accounts through employee, employer, and business contributions, you reduce your taxable income by the same amount. This saves $44,640 in federal taxes at 2025 tax rates.
How We Help
At MT Bachani CPA PLLC, we provide comprehensive tax planning services to help you:
- Maximize Deductions: Leverage every opportunity to reduce taxable income.
- Optimize Contributions: Make the most of your retirement plans as both an employee and a business owner.
- Ensure Compliance: Navigate IRS rules with confidence while achieving your financial goals.
Schedule a Tax Planning Session with us today regarding the new One Big Beautiful Bill Act
Frequently Asked Questions
Yes, but there are limitations:
- Employee Contributions: The maximum employee contribution limit applies across all plans. If you’ve already contributed the maximum at your job, you cannot make additional employee contributions through your business.
- Employer Contributions: As a business owner, you can still contribute a percentage of your net self-employment income to a Solo 401(k) or SEP-IRA, up to the overall limit.
Withdrawals before the designated retirement age incur penalties plus ordinary income taxes, with exceptions for certain cases (e.g., medical expenses, first-time home purchases).
Individuals aged 50 or older can contribute additional funds to their retirement accounts to help them save more as they approach retirement.
4. How can I minimize taxes during retirement?
- Space out withdrawals to stay within lower tax brackets.
- Convert to Roth IRAs during low-income years for tax-free growth.
The total contribution limits depend on the type of plan and your income but include both employee and employer contributions.
You can establish plans like a SEP-IRA, SIMPLE IRA, or Safe Harbor 401(k) to provide tax-advantaged savings for your employees.
No, employer contributions are not taxed as income to you.
Yes, as long as it’s a direct rollover or completed within the allowed timeframe, you won’t incur penalties.