Overview of At The Money: Tax Day Special
This episode of Bloomberg’s At The Money (host Barry Ritholtz) features Bill Artseronian, Director of Tax Services at Ritholtz Wealth Management, discussing practical, year‑end and 2026 tax planning strategies for investors. The conversation emphasizes that “tax advice is financial advice,” explaining how taxes touch every part of a financial plan and outlining concrete moves — from retirement accounts to charitable strategies, SALT planning, and tax‑loss harvesting — that can reduce 2025 tax bills and improve long‑term outcomes.
Key takeaways
- Taxes are integral to every part of financial planning (cash flow, estate planning, portfolio management). Tax planning should be year‑round and generational.
- Tax deferral is not tax avoidance: many strategies delay tax but don’t eliminate it.
- Timing matters: carefully time capital gains, equity compensation recognition, charitable deductions and retirement contributions to optimize tax outcomes.
- New and upcoming rule changes (notably 2026 Roth catch‑ups and SALT limit changes) require tactical adjustments now.
Actionable tax moves before year‑end
For high‑earning professionals
- Review charitable giving: bunch donations or use donor‑advised funds (DAFs) to ensure you itemize when it yields benefit.
- Manage equity compensation timing: decide how much stock compensation to recognize to avoid bracket jumps or AMT exposure.
- Consider retirement plan maximization (401k employer + employee cap, potential mega backdoor Roth) and whether you can fund higher employer contributions.
For small business owners
- Optimize qualified business income (QBI) planning — understand wages/payroll thresholds that affect the 20% deduction for pass‑through income.
- Ensure you have cash available for employer retirement contributions if you want to hit the combined 401(k) limit.
Universal year‑end checks
- Confirm whether you’ll itemize or take the standard deduction; bunch charitable gifts if needed.
- Decide whether to accelerate or defer capital gains to align with loss harvesting and bracket planning.
- Reconcile estimated tax payments vs. safe‑harbor rules to avoid penalties or excessive refunds (opportunity cost).
Tax‑advantaged accounts and 2026 changes
- 401(k): total employer+employee contribution limit cited at $70,000 (check current IRS updates for exact year-specific limits).
- Mega backdoor Roth: confirm whether your employer plan permits after‑tax contributions + in‑plan conversion.
- Backdoor IRA: still useful if you have no pre‑tax IRA balances (contribute after‑tax and convert to Roth).
- HSA: excellent long‑term tax‑free bucket if you’re on a high‑deductible health plan (deductible contributions, tax‑free growth and tax‑free qualified withdrawals).
- 2026 change: catch‑up contributions for those 50+ (example amount $7,500) will be required to be Roth (after‑tax) starting 2026 — increases future withdrawal flexibility.
Charitable giving strategies
- Bunching: aggregate multiple years of planned giving into a single year to surpass the standard deduction threshold and itemize.
- Donor‑advised funds: use appreciated securities to fund a DAF, take the deduction in the high‑deduction year, and then distribute grants over time.
- Note upcoming 2026 floor: the first 0.5% of AGI may not be deductible — plan large gifts to maximize current-year benefit, especially for high earners who may see deduction limits treated differently.
SALT (State and Local Tax) changes and planning
- Federal cap increased in the discussed bill from $10,000 to $40,000 for SALT deductions for many taxpayers (with phaseouts for higher incomes).
- Phaseout details as discussed: benefits begin phasing out above roughly $500,000 of income and are fully phased back to the $10,000 limit at about $600,000 (verify with current law/text for exact thresholds).
- Tactical moves: timing income and deductions (e.g., accelerating/delaying gains or deductions) can help capture a larger SALT benefit in 2025 for those who qualify.
Tax‑loss harvesting & direct indexing
- Tax‑loss harvesting should be ongoing, not just a December activity. Direct indexing makes continual harvesting more automated and granular but isn’t required to harvest losses.
- To avoid wash sale rules, replace sold positions with similar (not substantially identical) securities.
- State rules vary: e.g., New Jersey may not allow carryforwards, so for some state taxpayers (NJ example), it may make sense to harvest gains instead of losses to use state deductions effectively.
Common mistakes to avoid
- Treating tax deferral as permanent tax avoidance.
- Ignoring the timing of capital gains and equity compensation.
- Giving to charity but still taking the standard deduction (no federal tax benefit).
- Overpaying estimated taxes and accepting a large refund (opportunity cost).
- Assuming one‑time, year‑end tax fixes instead of ongoing planning.
Notable quotes
- “Tax advice is financial advice.”
- “Our clients would rather save $1,000 on taxes than make six figures in a trading day.”
Final recommendations (practical checklist)
- Review whether you’ll itemize in 2025; consider bunching/DAF strategies.
- Examine equity compensation to control taxable recognition this year.
- Max out retirement plan opportunities and explore mega backdoor Roth or backdoor IRA options.
- Continue tax‑loss harvesting throughout the year; adjust approach for state rules.
- For business owners, review QBI, payroll/wage strategy, and retirement plan funding needs.
- Confirm estimated tax payments and safe‑harbor compliance to avoid penalties or inefficient refunds.
- Talk to a tax professional now — many planning moves require coordination before year‑end or before rule changes (e.g., 2026 Roth catch‑up rule).
This episode is a practical reminder: taxes affect nearly every financial decision — proactive, year‑round planning tailored to your state, income level, and compensation type produces better outcomes than last‑minute fixes.