The Perfect RIA Encore Episode: Tips from the Trenches - Taxes
Dec 19, 2025
Discover quick strategies for estimating a client’s tax liability without complex software. Micah emphasizes the importance of using a current tax reference guide to verify brackets instantly. He reveals how to calculate a client's marginal tax rate by assessing fixed income plus withdrawals. Planning with the marginal rate is key, especially since new funds are taxed at the highest tier. Finally, Micah encourages proactive Roth conversions by comparing current rates with those projected for 2026.
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Keep A Tax Reference Guide Handy
- Keep a current RTS tax reference guide in your meeting room to verify brackets and deductions quickly.
- Use quick arithmetic on fixed income, Social Security, and desired spending to estimate annual taxable income fast.
Calculate Marginal Rate From Known Income
- Add predictable income (pension + Social Security) then annualize to see where taxable income lands relative to brackets.
- Plan using the client's marginal tax rate, not their effective tax rate, for decisions like Roth conversions.
Determine Required IRA Withdrawals Quickly
- Estimate client withdrawals by subtracting fixed taxable income from desired spending to determine how much to pull from IRAs.
- Factor the standard deduction when mapping that total to likely tax brackets.