For high-income earners, tax planning with Assante Wealth Management ends on one page your spouse can read, with every move marked reversible or permanent before anything is filed. One of the first steps is projecting this year’s and next year’s tax side by side, so quarterly estimates start before the first April without withholding. If last year’s AGI was over $150,000, paying 110 percent of last year’s tax avoids the underpayment penalty.
The income year that changes everything
A dentist or physician usually needs tax planning for high earners when income changes shape, not simply because the tax rate is high. W-2 associate pay can become partner draws with no withholding, a buy-in can come from taxable savings, or one large gain can land in a single year.
The household often looks familiar: a dentist in the late forties, a spouse at home, children, several old accounts and a practice deal on the table. For 2026, the top federal income tax rate of 37 percent starts above $768,700 for married couples filing jointly. Assante Wealth Management maps the income change, every account and the deal deadline on a single page first, and only then talks about adding an account or a fund.
What will Assante Wealth Management do with us in the first ninety days?
Assante Wealth Management uses the first 90 days to turn scattered tax facts into a short list of choices. During weeks one and two, you send three years of returns, recent pay stubs, the buy-in term sheet, and statements for all nine accounts, including cost basis for the taxable account. We list every account on one sheet.
Weeks three through six produce a two-year projection, with this year as an associate and next year as a partner. If AGI exceeded $150,000, quarterly estimates use 110 percent of the prior year’s tax as the safe-harbor target. A January-to-March start can wait for Form 1099-B statements, due in mid-February and often corrected in March.
During weeks seven through ten, each proposed move gets a dollar estimate and a reversible or permanent label. Before Assante Wealth Management suggests selling a fund, the projected tax on its gain is written down. Weeks eleven through thirteen are for the CPA’s check and the finished one-page plan.
- Weeks one and two: paperwork arrives
- Weeks three to six: projections are built
- Weeks seven to ten: moves are labeled
- Weeks eleven to thirteen: CPA checks figures
Same fund, different holding period
A $25,000 gain taxed at an assumed 20 percent creates $5,000 of tax now. If a replacement fund saves $900 each year, $5,000 divided by $900 is about 5.6 years, so the switch pays back during year six.
Hypothetical: Rachel and Lars are 47 and 49. Rachel is a pediatric dentist, Lars left engineering to stay home with their three children, and they hold $1.1 million across nine accounts from old jobs. They have been offered a $600,000 group-practice buy-in. In Lars’s old brokerage account, an actively managed fund is worth $180,000, including $45,000 of gain.
They plan to sell $80,000 next year toward the buy-in. That slice gets taxed either way, so the timing decision concerns the other $100,000, which contains $25,000 of gain. Selling that portion now at an assumed 20 percent costs $25,000 × 20 percent = $5,000.
The old fund pays about 4 percent, or $4,000, in taxable distributions each year. An index fund paying about 1 percent would distribute $1,000. The difference is $4,000 − $1,000 = $3,000. At an assumed 30 percent tax rate, $3,000 × 30 percent = $900 saved each year.
The shortcut is tax on the gain divided by yearly tax saved: $5,000 ÷ $900 = about 5.6 years. Rachel and Lars expect to hold the $100,000 for about 15 years, so switching can make sense. Assante Wealth Management would sell the $80,000 slice when the buy-in cash is due next year, not earlier.
Hypothetical: another couple asks about the same $100,000 but expects to use it for a house in three years. Three years of savings is $900 × 3 = $2,700, less than the $5,000 tax cost. They hold the fund and sell once when the cash is needed.
The shortcut ignores growth on the $5,000 and the fact that the gain may be taxed at a later sale, so part of the benefit is timing. The old fund may also distribute gains in a year when its price falls. A stock fund can drop just when the buy-in check is due, so we keep any buy-in cash needed in the next 12 months out of stock funds altogether.
| Year | Running cost | Running benefit |
|---|---|---|
| Year 1 | $5,000 | $900 |
| Year 2 | $5,000 | $1,800 |
| Year 3 | $5,000 | $2,700 |
| Year 4 | $5,000 | $3,600 |
| Year 5 | $5,000 | $4,500 |
| Year 6 | $5,000 | $5,400 |
The finished plan fits on one page
The finished work is one page. Its top line shows projected tax for this year and next, followed by four quarterly estimate amounts and their due dates. Three to five proposed moves come next, each with a dollar figure, a reversible or permanent label, the person responsible and a deadline.
The final line says what the plan leaves alone and why. For Rachel and Lars, that means no Roth conversion during the buy-in year. The shorter page is deliberate: fewer accounts, fewer funds and a plan either spouse can explain at the kitchen table.
Who files, who signs and who moves the money?
Rachel and Lars send the paperwork, decide yes or no on each move and sign the buy-in agreement. Nothing moves without their decision. Assante Wealth Management runs the projection, estimates the tax on each proposed sale, writes the one-page plan and sends the numbers to the CPA.
The CPA confirms the projection, sets quarterly estimates and prepares and files the return. The attorney reviews what happens to Rachel’s share if she becomes disabled or leaves, how the buy-in price is paid, and the wills and beneficiary forms for the three children. The custodian makes the sale on the chosen date and reports cost basis on Form 1099-B the following February.
- Client: sends records and decides
- Assante: projects and writes
- CPA: checks and files
- Attorney: reviews legal terms
- Custodian: executes selected trades
Can we undo a tax move if our income or the law changes?
Some tax moves cannot be undone: a Roth conversion can no longer be recharacterized, a realized gain stays realized, and a buy-in payment is spent. Assante Wealth Management puts those choices last and gives them the most checking, while withholding, quarterly estimates and future contributions can be adjusted.
The first April after Rachel’s pay switches to partner draws could bring a hypothetical $120,000 federal balance due at once, plus an underpayment penalty, on the same day the first estimate for the new year is due. Keeping buy-in cash needed within 12 months in cash leaves room for a bad practice year, while estimates based on last year’s tax use the IRS safe harbor. A careful CPA review may be enough if all income is W-2 pay and no buy-in, practice sale or large gain is coming. This service does not replace tax-return preparation or legal advice.
From first call to the finished page
The first call happens by video or telephone. You decide whether this year contains a change worth planning for, such as a buy-in, a sale or the switch to partner pay. Around week two, you decide what to share, including statements for all nine accounts and the term sheet.
At the projection review around week six, you decide whether to raise withholding or begin quarterly estimates. Around week ten, you decide yes or no on each move, including the switch of the $100,000 fund. Around week thirteen, you sign off after the CPA confirms the numbers.
Assante Wealth Management puts the full cost of the work on paper, and you see it before you say yes to any of it. If the work is not likely to change a decision, waiting is sensible; if the income year is about to change, the deadline is part of the value.
- First call: identify the year’s change
- Around week two: share records
- Around week six: choose estimate timing
- Around week ten: approve or reject moves
- Around week thirteen: sign off
Your questions about tax planning for high-income earners, answered
My new group pays partners by draw with no withholding. How do I avoid an underpayment penalty?
Start quarterly estimates using the IRS safe-harbor calculation, generally 110 percent of the prior year’s tax when prior-year AGI exceeded $150,000. Assante Wealth Management projects the associate year and partner-draw year side by side, then sends the amounts to your CPA for confirmation. The CPA prepares the estimates and return.
How much should we set aside for quarterly estimated taxes after a practice buy-in?
There is no universal set-aside amount because the buy-in, deductions, filing status and practice income affect the result. Assante Wealth Management projects the new partner year and divides the estimated obligation into quarterly amounts. For a prior-year AGI over $150,000, the IRS safe harbor is generally 110 percent of last year’s tax.
When should we sell taxable investments if we need cash for a buy-in next year?
Sell the taxable investment when you need the buy-in cash, unless the holding will remain invested for long enough to recover the tax cost of switching. A stock fund needed within 12 months should not carry buy-in money. Assante Wealth Management records the gain, estimated tax and cash deadline before recommending a sale.
Can a stay-at-home spouse still lower our tax bill?
A stay-at-home spouse can affect filing status, deductions, account ownership and the timing of income, but there is no automatic tax benefit from being at home. Assante Wealth Management reviews both spouses’ accounts and decisions together, then sends the proposed numbers to the CPA, who applies the tax rules to the return.
Is separate tax planning worth paying for if our CPA already prepares our return?
Separate tax planning can be worth paying for when income changes shape, such as partner draws, a practice buy-in or a large taxable gain. A CPA may already cover everything you need when income stays simple. The planning work does not replace the CPA’s return preparation or an attorney’s contract review.
How long should we keep old tax returns and cost-basis records?
Keep tax returns and cost-basis records for as long as your CPA recommends, especially while taxable investments remain open or gains have not been reconciled. Assante Wealth Management asks for three years of returns and statements for each account at the start, including basis for taxable holdings, then identifies missing records.
Sources and further reading
This is general information, not advice tailored to your finances or circumstances. Investing involves risk, including the possible loss of principal. Before making any decision about money, taxes or your practice, talk with a professional who knows your full situation.