Are you paying the extra 3.8% you don’t have to? The Net Investment Income Tax (NIIT) applies once your income exceeds $200,000 (single) or $250,000 (married). But there are smart ways to reduce it:
- Favor tax-exempt investments like municipal bonds.
- Max out retirement and HSA accounts, which are exempt from NIIT.
- Harvest losses to offset gains. – Time your income around thresholds to stay below the surtax.
The goal isn’t to overhaul your portfolio – it’s to make your tax strategy as efficient as your investment strategy. At Liberty One Wealth Advisors, we help clients align portfolio design, timing, and tax management – so your money works smarter, not just harder.
