At HWC Financial, investment performance is only part of the equation. What ultimately matters is what you keep after taxes. That’s why we manage portfolios with a deliberate focus on tax efficiency — not as an afterthought, but as a core component of how we serve clients. Our approach combines proactive tax‑loss harvesting, careful security […]
Managing Tax Exposure Through Proactive, Holistic Planning Read More »
Imagine receiving a tax bill for income that never made its way into your bank account. It sounds like a mistake, but it’s not. This is the result of phantom income. It’s one of the most misunderstood risks in certain investment structures, and it shouldn’t be ignored because it can have consequences when your tax
Phantom Income, Real Taxes Read More »
Insights from HWC Financial As we look ahead to tax year 2026 (returns filed in 2027), it’s more important than ever to stay ahead of the curve. Several key changes — driven by inflation adjustments and new law provisions — will affect deductions, credits, and planning strategies. Here’s what clients of HWC Financial should be paying
2026 Tax Changes You Can’t Afford to Ignore Read More »
The One Big Beautiful Bill Act introduced a new savings plan that can help build savings for children’s college and other expenses. But, how do the new Trump Accounts compare to existing 529 plans and Roth IRAs? Our expert outlines the details. President Donald Trump’s One Big Beautiful Bill Act (OBBBA) introduces a new savings vehicle for
Trump Accounts vs. 529 Plans and Roth IRAs: What’s Best for Your Child? Read More »
The One Big Beautiful Bill Act creates a new savings vehicle for families with children born before 2028. The new ‘Trump Accounts’ offer an opportunity for many families to save money for some of their children’s future expenses. But they also carry complications and should be considered carefully. The 2025 One Big Beautiful Bill Act (OBBA) introduced
What Are Trump Accounts and How Do They Work? Read More »
Smart Strategies for Qualifying for Early Distribution Penalty Exceptions. Early—or pre-age 59½—distributions from IRAs and employer plans are subject to a 10% early distribution penalty unless an exception applies. In Part 1, we explain how to avoid losing eligibility for some exceptions by changing from one type of plan to another. In Part 2, we highlight
How to Avoid the 10% Early Distribution Penalty: Part 2 of 2 Read More »
According to a 2024 report by the Treasury Inspector General for Tax Administration (TIGTA), Americans made early distributions of $12.9 billion in 2021. Early distributions—those taken before age 59 ½—are subject to a 10% additional tax or early distribution penalty. To that end, the following are some of the strategies that you can utilize to
How to Avoid the 10% Early Distribution Penalty: Part 1 of 2 Read More »
The recent short selling activity in GameStop has motivated some to become new “investors” because of the idea of making fast money through such trading. However, many are unaware of the dangers of short selling, along with the tax implications that come along with any potential quick profits. One of the dangers in short selling
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Certain red flags could increase your chances of getting the attention of the IRS. Luckily, the chances that your tax return will be chosen for an audit are very low. The IRS audited les than 0.5% of all tax returns in 2019. The majority of exams were by mail, which means that most taxpayers never
IRS Audit Red Flags Read More »