Funding the Gap: How to Lower Your 2025 Tax Bill Today

·29 min·2 clips

CJ Kloss reveals you can still lower your 2025 tax bill today, even though that tax year is closed.

The episode is a radio show interview format where host Sean guides a conversation with guests CJ Kloss and Kyle Kite from Kloss Financial. The primary topic is actionable tax planning for the 2025 tax year, focusing on opportunities available until the April 15 filing deadline. The advisors first establish that contributions to Traditional IRAs and HSAs for the prior tax year can be made until this date, effectively lowering taxable income. They break down the rules for Traditional IRAs: the need for earned income, contribution limits of $7,000 (under 50) or $8,000 (50+), and how these are combined limits with Roth IRAs. Kyle explains the historical reason for the April 15 deadline, tying it to the tax return filing process. A significant portion involves calculating potential tax savings, illustrated with an example where a $7,000 contribution saves $1,540 for someone in the 22% tax bracket. The show incorporates listener calls, which drive deeper dives into specific scenarios. The first caller, Tim, confuses IRA rules with employer-sponsored 403B plans, leading to a clarification on higher contribution limits and the tax treatment of Roth versus pre-tax contributions. CJ emphasizes the situational complexity, admitting it took him years to master the rules. A second caller, John, asks about reducing taxes on Required Minimum Distributions (RMDs), prompting an explanation of Qualified Charitable Distributions (QCDs) as a strategy to satisfy RMDs without increasing taxable income. Later, Kyle details the 'triple tax benefit' of HSAs: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses, noting the requirement of being enrolled in a high-deductible health plan. The episode concludes with a promotional quiz question about the IRA contribution limit for those over 50, offering a prize. Throughout, there are repeated promotional segments for Kloss Financial's website and complimentary consultation offer.

As heard by us

A live retirement-planning call explains why Roth contributions do not lower taxable income, while traditional contributions can.

A listener question about lowering taxable income turns into a clear reminder that Roth and traditional retirement accounts are not interchangeable.

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Why you'd press play

Trying to keep taxable income under a threshold? Start with the Roth 403(b) distinction that can change the answer.

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