Why Tax Season Isn’t Over (Especially for Your Most Affluent Clients)

For many high-income earners and successful business owners, filing a tax extension isn’t about procrastination — it’s a planning strategy.

If you work with extended filers, the months between now and October are some of the most valuable on the calendar. It’s a chance to implement powerful tax-saving strategies, assess long-term planning goals, and deliver the kind of proactive guidance that sets you apart.

Here are 5 key strategies to consider during the extension window:

1. Maximize Prior-Year Contributions — Especially Cash Balance Plans

Clients who filed an extension may still be eligible to make deductible contributions for the previous tax year.

💡 Opportunity: Implementing or maximizing 401(k), SEP IRA, SIMPLE IRA, or cash balance plans now could potentially reduce their prior-year tax liability by six figures.

2. Use Life Insurance for Tax-Advantaged Growth

Indexed Universal Life (IUL) policies can serve as a powerful planning tool for clients facing future tax hikes or looking for estate planning leverage.

✅ Tax-deferred growth

✅ Tax-free income (via policy loans if structured correctly)

✅ No income or contribution caps like qualified plans

💡 Pro tip: Run illustrations using $50K–$250K in annual premiums to showcase long-term, tax-advantaged growth potential.

3. Offer Growth Without the Market Risk Using FIAs

Fixed Index Annuities (FIAs) provide growth potential with downside protection — especially valuable during times of market volatility.

✅ No downside risk

✅ Tax-deferred accumulation

✅ Optional lifetime income riders

💡 Ideal for repositioning non-qualified dollars that are generating unwanted taxable interest.

4. Consider Premium Financing for HNW Life Insurance Needs

For clients who need significant life insurance but want to preserve liquidity or retain assets under management, premium financing could offer a solution.

✅ Use borrowed funds to cover premiums

✅ Retain capital for other uses

✅ Secure loan with policy values and/or outside collateral

💡 Perfect for estate tax mitigation, executive bonus planning, and multi-generational wealth transfer.

5. Act Now on Gifting and Legacy Strategies

With estate tax thresholds scheduled to sunset in 2026, now is the time for charitable giving, SLATs, GRATs, and large lifetime gifts.

✅ $18,000 per person annual exclusion (2024)

✅ Foundation or DAF funding

✅ Estate liquidity planning

💡 Don’t wait until Q4 — design and execute these strategies while there’s still time to do it right.

Final Thoughts

For extended filers, tax season isn’t over — it’s just beginning.

Use this window to deliver more than tax prep. Deliver long-term value.

These five strategies can help you minimize liability, enhance legacy planning, and build deeper relationships with your most valuable clients.