Trump Accounts for Business Owners: Two Decisions, Not One
Trump Accounts hand business owners two separate decisions. See who can actually participate under the Section 128 employer rules, and
Develop a coordinated tax and financial plan for a dual-income professional household earning over $1 million annually. The goal is reducing their effective tax rate, organizing their wealth, and building a foundation for long-term financial security.
Integrate income tax planning, investment strategy, retirement optimization, and foundational estate planning into a single, cohesive framework that scales with the family’s growing income and complexity.
A professional couple, both high earners with careers in medicine and law, came to Defiant Capital Group frustrated by the gap between what they were earning and what they were keeping. Despite a combined income well above $1 million, they had never worked with an advisor who tied everything together.
Their financial picture was scattered:
They weren’t lacking income. They were lacking a plan.
We built a comprehensive strategy that touched every dimension of their financial life. The goal was straightforward: make their income work harder by lowering taxes through investment coordination and tax planning, coordinating where assets were held and creating a clear long-term roadmap.
Our priorities included:
We began by modeling the family’s full income picture across W-2s, bonuses, RSUs, and investment income. This allowed us to identify every available lever for tax reduction.
Actions taken included:
Maximized 401(k) contributions for both spouses, including after-tax mega backdoor Roth conversions where plan rules permitted
Executed backdoor Roth IRA contributions for both spouses annually
Leveraged HSAs as a third tax-advantaged account, investing rather than spending current contributions
Analyzed RSU vesting schedules and implemented a tax-lot strategy to manage equity concentration and minimize capital gains exposure
Optimized bonus timing and payroll withholding to reduce underpayment penalties and interest
Identified passive income and loss opportunities within the investment portfolio to offset ordinary income
With the tax strategy established, we built a coordinated investment portfolio across all account types, taxable, tax-deferred, and tax-free, using asset location as an organizing principle:
Placed tax-inefficient assets (bonds, REITs, alternatives) in tax-deferred accounts. This alone meaningfully reduced the annual tax drag on income-generating investments.
Reserved Roth accounts for highest-return, longest-horizon growth positions. Assets that compound the most benefit most from permanent tax-free treatment.
Used the taxable account for tax-efficient index exposure with ongoing tax-loss harvesting. Losses were systematically captured to offset gains elsewhere in the portfolio.
Implemented a long/short strategy to start reducing embedded gains. Doing so allowed the family to begin unwinding concentrated, highly appreciated positions without triggering a large immediate tax bill.
Reviewed and integrated held-away assets for a unified risk, cost, and allocation profile across both employers’ plans. Duplicative funds and excess fees were eliminated in the process.
The result was a portfolio that not only reflected the family’s risk tolerance and time horizon, but was actively structured to keep more of their returns out of the IRS’s hands each year.
Beyond taxes and investments, we established a long-term planning foundation for the family. The goal was to avoid probate and ensure a clean transfer of assets to children and charities.
Opened and funded 529 accounts for each child, with investment strategies aligned to their respective college timelines
Evaluated life and disability coverage and restructured policies to reflect current income levels and future financial obligations
Reviewed and corrected beneficiary designations across all retirement accounts, insurance policies, and taxable accounts
Coordinated with an estate attorney to draft updated wills, powers of attorney, and healthcare directives
For the first time, the family had a single, integrated view of their financial life with a team actively managing every piece.
Net results:
Significant annual tax savings through retirement account optimization, HSA utilization, and proactive income management
A coordinated investment portfolio with lower fees, improved tax efficiency, and a clear asset location framework
Education savings on track for both children through properly structured and funded 529 plans
Estate planning documents completed and beneficiary designations corrected for the first time
Insurance coverage restructured and aligned to the family’s actual income and financial obligations
High income creates the potential for wealth. A coordinated strategy is what converts that potential into lasting financial security.
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