Maximize your clients' savings with tax-advantaged investments to build wealthBy: Patton Archer
January 5, 2025

Clients are looking for individualized tax plans that illustrate the power of tax-advantaged investment accounts. By creating a tax plan that helps them now and in retirement, your clients have the potential to save an average of $50,000 in taxes.

Health savings accounts (HSA)

HSAs are one of the most powerful investment tools that are available to any individual with a high-deductible health care plan. The key to taking advantage of an HSA is to cover health care costs out of pocket, which gives you the ability to invest the HSA funds and allow the account to grow tax-free. This investment vehicle can be used as an addition to a 401(k).

Advantages:

  • Contributions reduce taxable income
  • Earnings within the HSA are tax-free
  • Withdrawals are tax-free (using the funds to cover prior health care costs during working years)

529 college savings

A 529 is an investment account that is built to save for education expenses. However, up to $35,000 of funds in a 529 can be rolled into a Roth IRA after 15 years. Tax savings on contributions are on a state-by-state basis, but in most states, you will receive a tax deduction or credit.

Advantages:

  • Most states offer tax savings on contributions
  • Investments within the account grow tax-free
  • Withdrawals for education expenses are tax-free

Up to $35,000 can be rolled into a Roth IRA without facing penalties or taxes

Roth conversions

A Roth IRA is a common tool used to invest for retirement. In 2025, Roth income contribution limits are $150,000 for single filers and $236,000 for married filing jointly. However, the backdoor Roth method is available to all individuals regardless of income.

Advantages:

  • Contribute to a non-deductible IRA and convert to Roth IRA in the same day
  • Earnings within the Roth IRA grow tax-free
  • Withdrawals after age 59½ are tax-free

Allows for high-income individuals and households to contribute to a Roth IRA

Request an individualized tax planning breakdown

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How to hold a successful virtual client meeting in 2025 By: National Association of Tax Professionals
January 2, 2025

The rise of virtual client meetings has transformed how tax professionals connect with their clients. While meeting online offers convenience and flexibility, it also comes with unique challenges that require preparation and professionalism to ensure success. Here are six best practices for holding effective virtual client meetings during this busy tax season.

1. Set the stage with clear communication

Before your virtual meeting, confirm the details with your client, including the platform you’ll be using (Zoom, Microsoft Teams, etc.) and how to access the meeting. Share a clear agenda ahead of time so your client knows what to expect and can prepare any necessary documents. A little preparation goes a long way in keeping the meeting focused and productive.

2. Create a professional environment

Your virtual meeting space should reflect the same level of professionalism as your physical office. Choose a quiet, well-lit area with a neutral background. If possible, use a professional or branded virtual background. Eliminate distractions by silencing notifications and ensuring family members or pets won’t interrupt.

3. Leverage secure technology

Client confidentiality is a cornerstone of your work as a tax professional. Use a secure video conferencing platform and ensure all shared files are sent through encrypted channels.

It’s also important to have a written information security plan (WISP) in place for your office, as required by federal regulations and many states. A WISP outlines how your firm protects sensitive client data and mitigates risks associated with data breaches. NATP offers resources to help you get started on creating or updating your WISP, and members can get a discount on additional education that covers creating and implementing a WISP.

4. Prepare and test your technology

Technical difficulties can derail even the best-laid plans. Before the meeting, test your internet connection, camera, microphone and any tools you’ll be using to share your screen or documents. Encourage your clients to do the same, especially if they’re unfamiliar with virtual meetings.

5. Engage and personalize the experience

Virtual meetings can sometimes feel impersonal, so take extra steps to connect with your client. Begin by checking in with them and asking how they’re doing. Make eye contact by looking into the camera and acknowledge their concerns throughout the meeting. Use screen sharing to walk them through important documents or calculations, ensuring they feel involved and informed.

6. Follow up with clear action steps

After the meeting, send a follow-up email summarizing the key points discussed and any next steps. Include links to any forms or resources they’ll need and a reminder of upcoming deadlines. This recap not only helps your client stay organized but also reinforces your professionalism and commitment to their success.

Elevate your virtual client meetings

Virtual meetings are here to stay, and mastering this format is essential for modern tax professionals. By preparing thoughtfully, leveraging secure technology and engaging with your clients effectively, you can provide the same level of exceptional service as you would in person. Here’s to a successful and productive tax season!

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You make the callBy: National Association of Tax Professionals
January 2, 2025

Question: Sandra has a publicly traded partnership (PTP) Schedule K-1 (Form 1065) with multiple PTP activities reported. One of the activities, Energy Partners LLP (a PTP), has a $5,000 loss in Box 1. Another activity, Blackstone Group (a PTP), has $6,000 of income in Box 1. Sandra is hopeful the loss from one activity can offset the gain from the other. Can the passive income from Blackstone Group offset the passive losses from Energy Partners, LLP?

Answer: No. Each PTP activity is treated on a stand-alone basis for passive activity loss purposes. This means that losses from one activity, including carryforwards, can only offset income from the same specific PTP. In other words, losses from Energy Partners LLP cannot offset the passive income from Blackstone Group, even though they are reported on the same Schedule K-1 (1065). Sandra will report $6,000 of passive income separately and a $5,000 suspended passive loss, currently non-deductible, which can only be used against future income from Energy Partners LLP.

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About NATP

Whether you’re a tax professional just starting out in your career or an experienced expert, NATP believes in you and the work you do to help your clients. We take pride in providing you with resources you won’t find anywhere else, and helping you succeed in the ever-growing and changing industry.

As tax laws change, you can rely on NATP for professional advocacy within the government, guidance on how to apply updated federal tax code to your clients’ unique situations and relationships with communities of other tax professionals to help foster your career. Explore NATP.

If you’re a taxpayer looking for an expert to help you with your tax planning and preparation, look to the industry’s top preparers. Choose an NATP member.

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