Free tool · For wealth builders

The Wealth Builder Tax Audit

Built for people more than about five years away from drawing retirement income. The decisions you make now (which buckets you fill, where you hold what, which windows you use) quietly set your tax bill for decades. These twelve questions find the leaks while there's still plenty of time to close them.

This is an educational self-check, not personalized advice. Your answers stay on your device: nothing is stored or sent anywhere.

0 of 12 answered

Section 2: Investment Tax Efficiency

4) Is your portfolio structured with asset location in mind, holding tax-inefficient assets (bonds, REITs, high-turnover funds) inside tax-advantaged accounts?

Yes, I intentionally place assets based on their tax efficiency

I have some awareness, but have not optimized placement across accounts

My investments are allocated without much consideration for tax efficiency

I am not familiar with asset location as a strategy

5) Are you strategically managing capital gains and losses in your taxable accounts, for example, through tax-loss harvesting or timing sales to stay in lower brackets?

Yes, I actively harvest losses and time realizations, with tax impact in mind

I try to be mindful of capital gains and losses, but I do not have a formal strategy

I sell assets based on need or performance, without considering the tax impact

I have not thought about managing capital gains as part of my plan

Section 3: Roth Strategy & Future RMD Awareness

6) Do you understand how a heavy concentration in pre-tax accounts today could create a large Required Minimum Distribution (RMD) tax problem in retirement?

Yes, I am actively managing my pre-tax balance to avoid a future RMD spike

I have heard RMDs could be an issue, but have not modeled what they might look like

I know RMDs exist, but have not connected my current saving habits to their future impact

I am not familiar with how RMDs work or how they will affect my taxes later

7) Has anyone ever shown you what your projected Required Minimum Distributions are going to be?

Yes, I have seen a detailed projection and understand how large they could be

I have heard the term RMDs, but have never seen an actual projection for my accounts

No, no one has ever walked me through what my projected RMDs will look like

I am not sure what RMDs are or how they are calculated

Section 4: Compensation & Windfall Tax Planning

8) Have you identified any lower-income years between now and retirement, such as a job change, parental leave, sabbatical, or semi-retirement, as potential Roth conversion opportunities?

Yes, I have used, or am planning to use, low-income years to convert at favorable rates

I know Roth conversions can be strategic, but have not found or acted on a window yet

I have not thought about income variability as a tax planning opportunity

I did not know lower-income years could create a Roth conversion window

9) If you receive equity compensation (RSUs, stock options, ESPP) or expect a large taxable event (property sale, inheritance, business sale), do you have a proactive tax plan for it?

Yes, I plan ahead and coordinate with my advisor or CPA before these events occur

I try to manage those events, but do not usually respond until tax filing time

I handle these events as they come, without forward-looking tax planning

I have not thought about how these events affect my overall tax picture

Section 5: Estate Readiness & Professional Guidance

10) Are you aware of how your savings decisions and income mix today will shape your Social Security taxation and Medicare premium surcharges (IRMAA) in retirement?

Yes, I understand the connection and factor it into my long-term planning now

I know higher income in retirement can trigger higher costs, but have not tied it to my decisions today

I have heard of IRMAA, but do not know how my current choices affect it

I was not aware that today's saving habits could affect future Medicare costs

11) Have you reviewed your beneficiary designations recently, and do you understand the tax implications for your heirs, including the 10-year rule for inherited IRAs?

Yes, my designations are current and coordinated with my overall estate plan

I set beneficiaries when I opened accounts, but have not revisited them recently

I know I should review them, but have not yet done it

I did not realize beneficiary designations carry significant tax consequences for heirs

Section 6: Overall Tax Planning

12) Do you work with a financial advisor or tax professional who builds a multi-year tax strategy, not just prepares your annual tax return?

Yes, I have a forward-looking, multi-year tax plan reviewed at least annually

My advisor or CPA addresses taxes, but we do not do multi-year projections

I rely on my tax preparer at filing time, but do not plan proactively

I do not currently work with anyone on long-term tax planning

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