4 Tax-Smart Moves Wealthy Women Should Make To Keep More of Their Money
Written by
Gabrielle Olya
Edited by
Molly Sullivan
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Women with high incomes often pay more in taxes than they need to — not because the rules are stacked against them, but because the most effective strategies aren’t always obvious. As wealth grows more complex, tax planning becomes less about deductions and more about timing, structure and long-term coordination.
In this “Financially Savvy Female” column, we chatted with Heather Rivas, CPA, CFP, a wealth advisor at River Wealth Advisors, about tax-smart moves high-income women should consider for their futures.
1. Max Out Tax-Advantaged Accounts To Reduce Tax Bills
For women still earning a paycheck, one of the most powerful — and often underutilized — tax strategies is fully funding employer-sponsored tax-advantaged accounts.
Rivas recommended maximizing contributions to workplace retirement plans such as a 401(k), as well as health savings accounts (HSAs), when eligible. These contributions can help shelter income during high-earning years while allowing investments to grow tax-deferred.
“Maximizing these contributions can provide immediate tax benefits,” she said. “Like 401(k) accounts, most HSA plans now allow for balances to be invested. Deferring and growing HSA balances reduces taxes now and provides a savings account that can be used for medical expenses in retirement.”
Because contribution limits and plan features vary, check with your company’s human resources department or benefits provider to help ensure you’re taking full advantage of what’s available.
2. Use Retirement Income Gaps Strategically
As retirement approaches, tax planning shifts from accumulation to sequencing — and timing becomes just as important as saving.
Rivas pointed to the years between retirement and the start of other income sources, such as Social Security or required minimum distributions (RMDs), as a key planning opportunity.
“Understanding cash flow needs and taxable income several years ahead, particularly when approaching retirement, allows for more effective multiyear tax planning,” Rivas said. “Income gaps provide windows to potentially convert pretax retirement accounts to Roth or evaluate tactical retirement account drawdowns.”
Approaching these lower-income years strategically can help reduce lifetime tax liability and increase flexibility later in retirement. Rivas recommended working with a financial advisor who takes a holistic approach, integrating tax planning, investments and long-term cash flow.
“This will not only help to assess the effectiveness of these strategies,” she said, “but should help build confidence as you turn the page on your next chapter.”
3. Lower Taxes Through Charitable Giving and Legacy Planning
For many wealthy women, charitable giving becomes more meaningful later in life, both as a way to support causes they care about and to manage taxes more efficiently.
One option Rivas highlighted is the qualified charitable distribution (QCD). After age 70½, individuals can direct up to $100,000 per year from an IRA directly to qualified charities.
“These distributions count towards required minimum distributions, and act to reduce the income reported on your tax return,” Rivas said. “This is particularly appealing for individuals who normally take the standard deduction on their tax return because rather than deducting a gift, it reduces income and the standard deduction is preserved.”
Another powerful strategy for those with charitable intent is using a donor advised fund (DAF). This allows individuals to front-load multiple years of charitable giving into a single high-income year.
“This allows you to itemize and take a large deduction when your tax rate is at its highest,” Rivas said. “You can achieve this by contributing appreciated securities to a DAF in that year, claiming the full deduction immediately, and then recommending grants to the charities of your choice over time.”
This approach is especially effective after bonuses, equity compensation or liquidity events, when income may temporarily spike.
4. Build a Tax-Efficient Investment Strategy
For women in the highest tax brackets, how investments are structured can have a significant impact on after-tax returns.
Rivas noted that tax-efficient strategies — such as holding municipal bonds for federal, and sometimes state, tax-free income, or harvesting investment losses to offset gains — can help reduce ongoing tax liability without sacrificing long-term growth.
“This strategy can be effective because it can lower current tax bills without reducing overall investment exposure, allowing more of your returns to compound over time,” Rivas said.
Over time, that tax efficiency can translate into meaningful differences in net worth, particularly for investors with sizable taxable portfolios.
As income and assets grow, tax planning becomes less about immediate decisions and more about proactive coordination. Working with an advisor who understands how income, investments, retirement timing and charitable goals intersect can help ensure you’re not paying more in taxes than necessary — now or in the future.
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