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Tax Planning Services

At MT Bachani CPA PLLC, we specialize in helping employees, business owners, and gig workers create effective tax 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:

  1. 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.
  2. Employer Contributions:
    Many employers match a percentage of your contributions, which are not taxed as income to you.
  3. Tax-Deferred Growth:
    Contributions and their earnings grow tax-free until you withdraw them in retirement.
  4. Strategic Withdrawals in Retirement:
    By spacing out withdrawals, you can stay within lower tax brackets and reduce overall taxes.

For Business Owners and Gig Workers  

Self-employed individuals have unique opportunities to save for retirement. The best plans include:

  1. 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.
  2. 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.
  3. 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:

CategoryWithout Contributions ($)With Contributions ($)Difference ($)
Total Income500,000500,0000
Retirement Contributions0139,500-139,500
Taxable Income500,000360,500139,500
Tax Liability124,529.5079,889.5044,640

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:

  1. Maximize Deductions: Leverage every opportunity to reduce taxable income.
  2. Optimize Contributions: Make the most of your retirement plans as both an employee and a business owner.
  3. Ensure Compliance: Navigate IRS rules with confidence while achieving your financial goals.

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.