Tax season is here, and if you're like most people in Iowa, you're gathering W-2s, tracking down receipts, and trying to figure out whether you owe money or are getting a refund.
However, what most people overlook is that tax preparation is a backward-looking process. You're reporting what already happened in 2025. The real opportunity? Using what you learn from preparing your taxes to make smarter decisions for 2026 and beyond.
That's where tax planning comes in and where working with a financial advisor makes all the difference.
At RetireRight, we're not tax preparers. We're financial planners who help you connect the dots between your tax situation and your long-term financial goals. Because the truth is, taxes aren't just an April problem; they're woven into nearly every financial decision you make, including retirement contributions, investment strategies, college savings, charitable giving, and more.
So, as you're pulling together your 2025 tax return, here are five critical questions you should be asking, not just about last year, but about the years ahead.
Question 1: Am I Contributing to the Right Type of Retirement Account?
When you contribute to a 401(k) or IRA, you have a choice: traditional (pre-tax) or Roth (after-tax). And that choice has massive implications for your taxes, both now and in retirement.
Traditional contributions: You get a tax deduction today. If you're in the 22% tax bracket and contribute $10,000, you save $2,200 on this year's taxes. But you'll pay taxes on every dollar you withdraw in retirement.
Roth contributions: No tax deduction today. That same $10,000 contribution costs you the full $10,000. But in retirement? Every dollar you withdraw is completely tax-free.
Most people default to traditional contributions because they like the immediate tax break. But that's not always the smartest long-term move.
Here's what to consider:
If you're early in your career and in a lower tax bracket now, paying taxes today (via Roth) can be a smart bet. You lock in a lower rate now and avoid potentially higher rates later.
If you're in your peak earning years, facing high tax rates, traditional contributions might make more sense. You get the deduction when it's worth the most.
But here's the wrinkle: tax rates might go up in the future. The Big Beautiful Bill Act that passed in 2025 made current tax rates permanent, but that doesn't mean Congress won't change them again. Having a mix of traditional and Roth accounts gives you flexibility to manage your taxes in retirement.
What RetireRight helps with: We look at your current income, your expected income in retirement, your other sources of retirement income, and your overall tax picture to help you figure out the right mix. Sometimes it's not either/or - it's both.
Question 2: Am I Maxing Out All My Tax-Advantaged Savings Opportunities?
Most people know about 401(k)s and IRAs. But there are other powerful tools that don't get nearly enough attention.
Health Savings Accounts (HSAs):
If you have a high-deductible health plan, an HSA is one of the best tax deals available. Contributions are tax-deductible. Growth is tax-free. Withdrawals for qualified medical expenses are tax-free. That's a triple tax advantage.
But here's what most people don't realize: you don't have to spend your HSA money right away. You can let it grow for decades and use it to cover healthcare expenses in retirement. For 2026, you can contribute up to $4,300 for self-only coverage or $8,550 for family coverage. If you're 55 or older, you get an extra $1,000 catch-up contribution.
529 College Savings Plans:
If you have kids or grandkids, 529 plans are an option. Contributions grow tax-free, and withdrawals for qualified education expenses are tax-free at the federal level.
Iowa residents get an extra benefit: you can deduct up to $3,785 per beneficiary (for 2026) on your Iowa state tax return. If you're married and both contribute, that's up to $7,570 in deductions per child.
And thanks to recent changes, you can now roll unused 529 funds into a Roth IRA for the beneficiary (subject to certain limits). That flexibility makes 529s even more attractive.
Donor-Advised Funds (DAFs):
If you're charitably inclined, a donor-advised fund lets you bunch multiple years of charitable contributions into one year to maximize your tax deduction, then distribute the funds to charities over time. This is especially valuable if you're close to the standard deduction threshold.
What RetireRight helps with: We help you prioritize these opportunities based on your goals. Should you max out your 401(k) first, or split contributions between your 401(k) and an HSA? How much should you be saving in a 529? We build a strategy that makes sense for your family.
Question 3: Am I Making Short-Term Tax Decisions That Hurt Me Long-Term?
Here's a common mistake: people optimize for the current tax year without thinking about the long-term consequences.
The 401(k) trap: You might contribute heavily to a traditional 401(k) to lower your taxable income this year. Great, you save on taxes today. But what happens in retirement when you start taking required minimum distributions (RMDs) at age 73?
All of a sudden, you're forced to withdraw money from your traditional retirement accounts whether you need it or not. That income could push you into a higher tax bracket, increase your Medicare premiums (IRMAA surcharges), and even make more of your Social Security benefits taxable.
That tax deduction you got 30 years ago? It might end up costing you more down the road.
The Roth conversion opportunity: A Roth conversion means moving money from a traditional IRA to a Roth IRA. You pay taxes on the converted amount now, but it grows tax-free forever.
Most people avoid conversions because they don't want to pay the tax bill. But if you're in a lower tax bracket now, for example, maybe you're between jobs, semi-retired, or had a down income year - a Roth conversion could be incredibly valuable. You pay taxes at today's lower rate and avoid paying at potentially higher rates later. Plus, Roth IRAs don't have RMDs, giving you more control over your retirement income.
What RetireRight helps with: We run projections to show you what your tax situation looks like over the next 10, 20, 30 years. We help you see beyond this year's tax return and make decisions that optimize your lifetime tax bill, not just this year's.
Question 4: How Will New Tax Laws Affect My Strategy?
Tax laws change. And when they do, it can create opportunities—or risks—depending on how you respond.
The Big Beautiful Bill Act that passed in July 2025 made several changes that impact 2025 taxes and beyond:
New deductions for 2025-2028:
- Seniors age 65+: Additional $6,000 deduction per person ($12,000 for couples). Phases out at higher incomes.
- Tips: Workers in tipping industries can deduct up to $25,000 in qualified tips annually.
- Overtime: Deduct up to $12,500 ($25,000 for joint filers) of qualified overtime pay.
- Auto loan interest: Deduct up to $10,000 of interest on loans for new vehicles purchased for personal use.
These are temporary provisions (2025-2028), so if you qualify, you need to take advantage of them while they're available.
Permanent changes:
- Individual tax rates (10%, 12%, 22%, 24%, 32%, 35%, 37%) are now permanent
- Increased standard deduction is permanent
- Child tax credit increased to $2,200 and is permanent
- Pass-through business deduction (Section 199A) is permanent
If you're 65 or older, that extra $6,000 deduction could save you $1,320 in federal taxes (if you're in the 22% bracket). If you're a business owner, the permanent Section 199A deduction means you can plan long-term around a 20% deduction on qualified business income.
Learn More About how the Big Beautiful Bill Could Impact Your Financial Plan.
What RetireRight helps with: We stay on top of tax law changes and help you understand how they affect your specific situation. We'll let you know when new opportunities open up or when you need to adjust your strategy.
Question 5: Am I Coordinating My Tax Strategy with My Overall Financial Plan?
This is the big one, and where most people fall short.
Your taxes aren't isolated. They're connected to everything else in your financial life:
Retirement income strategy: How you structure withdrawals from Social Security, pensions, traditional IRAs, Roth IRAs, and taxable accounts can make a massive difference in your tax bill.
Investment strategy: Where you hold different types of investments (tax-efficient index funds in taxable accounts, bonds in retirement accounts) can reduce your annual tax drag.
Medicare planning: Your income two years ago determines your Medicare premiums today. A large Roth conversion or stock sale in 2026 could trigger higher premiums in 2028.
Estate planning: Strategies like gifting, charitable donations, and trust structures all have tax implications that need to be coordinated with your overall plan.
Most people work with a tax preparer who does a great job filing their return. But a tax preparer looks backward; they report what happened last year. A financial advisor looks forward and helps you make proactive decisions.
What RetireRight helps with: We coordinate with your CPA or tax preparer to make sure everyone's on the same page. We run scenarios to show you the tax impact of different decisions. And we build a long-term tax strategy that aligns with your retirement goals, legacy plans, and overall financial picture.
Other Questions to Ask Your Financial Advisor and Tax Preparer
Beyond the big five, here are a few more questions worth discussing:
- Should I be making estimated tax payments for 2026 to avoid penalties?
- Am I taking full advantage of employer benefits like FSAs or dependent care accounts?
- If I'm self-employed, am I maximizing business deductions and retirement plan contributions?
- Should I be bunching charitable contributions to maximize itemized deductions?
- Do I have a plan for managing required minimum distributions when I turn 73?
- Should I be gifting assets now to reduce my taxable estate?
Your financial advisor and tax preparer should be working together to answer these questions. If they're not talking to each other, you're leaving money on the table.
Why Tax Planning and Financial Planning Go Hand in Hand
You can have a great investment portfolio, a solid retirement plan, and adequate insurance, but if you're not thinking strategically about taxes, you're going to pay more than you need to.
Taxes are one of the biggest expenses you'll face in your lifetime. And unlike most expenses, you have a lot of control over how much you pay if you plan ahead.
That's where RetireRight comes in. We're not tax preparers, but we work closely with your CPA or tax professional to make sure your financial plan and your tax strategy are aligned. We help you see the big picture, make proactive decisions, and avoid costly mistakes.
Because the best time to think about taxes isn't April 15th. It's year-round.
Ready to Build a Smarter Tax Strategy?
If you're in Iowa and preparing your 2025 taxes, now's the perfect time to think about how you can do things differently in 2026 and beyond.
At RetireRight Consulting Group, we help individuals and families build comprehensive financial plans that include proactive tax planning. Whether you're approaching retirement, growing your wealth, or navigating a major life transition, we're here to help you keep more of what you earn.
Let's start the conversation. Contact RetireRight today to schedule a consultation.
Disclaimer: This information is for educational purposes only and should not be considered tax or legal advice. Tax laws are complex and subject to change. Please consult with a qualified tax professional or CPA before making any tax-related decisions. RetireRight Consulting Group does not provide tax preparation or legal services but works collaboratively with your tax and legal professionals to support your overall financial strategy.