Now that your tax return is filed, you have a valuable planning window in front of you. Instead of treating tax season as the end of the process, use it as a checkpoint to make better decisions for the rest of the year.
Three moves are worth reviewing right away: adjusting your tax withholding, evaluating Roth conversion opportunities, and increasing retirement contributions. Each one can help you manage taxes more deliberately and potentially improve your long-term financial picture. Federal guidance confirms that withholding can be changed during the year by submitting a new W-4, and the IRS also notes that you can make estimated tax payments if needed.
1. Adjust tax withholding
If your tax return showed a large refund or a balance due, your withholding may need a tune-up. A big refund can mean you gave the government an interest-free loan, while a large tax bill may signal that too little was withheld from your paychecks.
Reviewing your paycheck withholding now gives you time to spread the correction across the rest of the year. The IRS says you can change withholding by filing a new Form W-4 with your employer, and similar forms apply to pensions, annuities, IRA distributions, and certain government payments. A simple adjustment today may prevent another surprise next spring.
2. Evaluate a Roth conversion
A Roth conversion can be especially attractive after tax filing, because you now have a clearer view of your income, deductions, and marginal tax rate. In a conversion, pre-tax retirement money is moved into a Roth account, and you pay tax on the converted amount now so future qualified withdrawals can be tax-free.
This strategy can make sense in years when your income is temporarily lower, during a retirement transition, or when you want to reduce future required minimum distributions. It is important to be thoughtful, though, because the conversion itself increases taxable income for the year. That means the best time to convert is often when you can keep the added income within a tax bracket you are comfortable with.
3. Increase retirement contributions
If your cash flow allows it, consider boosting retirement contributions for the rest of the year. Even a modest increase can make a meaningful difference over time, especially if you raise contributions each year or whenever you get a raise.
This is one of the easiest ways to convert a tax review into a long-term habit. More contributions can mean more tax-deferred or tax-free growth, and in many employer plans, you may also capture the full company match by increasing your deferral rate. If you are behind on savings, the months after filing are a good time to reset your plan and automate the change
A simple framework
Here is a practical way to think about the next step after filing:
- If your refund was too large, lower withholding.
- If you owed more than expected, increase withholding or make estimated payments.
- If your income is lower this year than usual, review Roth conversion options.
- If you can afford it, raise retirement contributions now instead of waiting until next year.
Final thought
Tax filing should not be the end of your tax strategy. It is often the best time to make a few smart adjustments that can improve your paycheck, strengthen retirement savings, and create more flexibility for future planning.
The best next move is usually the one that fits your current income, tax bracket, and savings goals. Start your personalized wealth strategy with Denver Private Wealth Management today.
Denver Private Wealth Management is an independent fee-based financial planning practice with 80+ years of experience in the financial industry. DPWM customizes portfolios based on your financial goals and works closely with you, your tax advisors and estate attorneys to form a comprehensive view of your financial situation. For more information or to set up a free consultation, contact us at info@denverpwm.com.
Post Disclaimer
The information contained in this post is for general information purposes only. The information is provided by Tax Return Finished? Three Smart Moves to Consider Next and while we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability or availability with respect to the website or the information, products, services, or related graphics contained on the post for any purpose.
Graham Ditus
Tim Kulick, CPA®
Drew Kelleher, CFP®
0 Comments