One question determines everything about your retirement income strategy.
Will your tax rate be higher or lower when you retire?
That's it. Answer this correctly, and you could save tens of thousands in taxes over your lifetime. Answer incorrectly, and you'll watch your hard-earned retirement income disappear to the IRS.
Most business owners and working families get this decision wrong. They make emotional choices based on what feels safe today rather than what builds wealth tomorrow.
At UniFirst Financial and Tax Consultants, our clients reduce their taxes by up to 50% using strategies that align perfectly with their retirement income goals. We don't guess about your future tax situation: we build holistic tax plans that account for every dollar you'll earn in retirement.
Here's the straightforward strategy that works:
Choose pre-tax contributions if you expect to be in a lower tax bracket in retirement. You get an immediate tax deduction now, reducing your current taxable income. When you withdraw funds later, you'll pay taxes at your retirement rate: which will be lower if your income decreases.
Choose Roth contributions if you expect to be in a higher tax bracket in retirement. You pay taxes on after-tax dollars today, but every penny you withdraw: including all growth and earnings: comes out completely tax-free in retirement.
This protects you from higher future tax rates and gives you control over your retirement income planning.
"For which of you, intending to build a tower, does not sit down first and count the cost, whether he has enough to finish it?" – Luke 14:28
Smart tax planning means counting the cost before you build your retirement tower.
New regulations took effect this year that force certain decisions on high-earning professionals and business owners.
If you're age 50 or older and earned more than $150,000 in FICA wages in 2025, any catch-up contributions you make in 2026 must be Roth contributions. There's no choice anymore.
This SECURE 2.0 provision specifically targets high earners. The government wants you to pay taxes now rather than defer them to retirement.
If you earned $150,000 or less, you still have the freedom to choose between pre-tax or Roth for catch-up contributions.
The contribution limits are substantial in 2026:
These are tax-deferred retirement accounts and tax-free investments working together to build your future.
Business owners often make pre-tax contributions because they want the immediate deduction. The tax savings feel good right now.
But consider this reality: Your income in retirement might actually be higher than it is today.
If you build substantial retirement assets, manage rental properties, maintain business income streams, or receive significant Social Security benefits, your retirement tax rate could exceed your current rate.
Add potential future tax rate increases, and suddenly that "tax break" you got decades ago becomes an expensive mistake.
That's why our Safety First Strategy focuses on building retirement income for life: not just accumulating account balances that will be heavily taxed later.
Roth accounts offer benefits beyond just tax-free withdrawals.
No Required Minimum Distributions (RMDs) during your lifetime. Pre-tax accounts force you to start taking distributions at age 72, whether you need the money or not. This creates taxable income you might not want.
Roth accounts let you decide when to access your money. You maintain complete control over your retirement income planning and tax situation.
Tax-free inheritance for your heirs. When you pass Roth accounts to your children or grandchildren, they inherit tax-free assets. Pre-tax accounts saddle them with a tax bill on every distribution.
Protection from future tax increases. Political winds shift constantly. Tax rates might rise significantly in coming decades. Roth contributions lock in today's rates and shield your retirement from legislative changes.
These advantages matter tremendously when building wealth that lasts multiple generations.
What if you're genuinely uncertain about your future tax situation?
Many retirement plans allow you to contribute to both pre-tax and Roth accounts simultaneously. This tax diversification balances your exposure and gives you flexibility in retirement.
You could designate 60% of contributions as pre-tax and 40% as Roth, for example. This creates both immediate tax savings and tax-free income in retirement.
This approach works particularly well for business owners with variable income. In high-earning years, pre-tax contributions reduce your current tax burden. In moderate years, Roth contributions build your tax-free base.
The key is having a deliberate strategy: not randomly splitting contributions without purpose.
Your choice between Roth and pre-tax contributions should integrate with your broader tax planning strategy.
We help business owners layer multiple tax saving strategies together:
These holistic tax plans are unlike those offered anywhere else. We don't just file your returns: we architect your entire financial future to minimize lifetime taxes.
Clients consistently discover opportunities to reduce their tax burden by 30-50% when they stop treating retirement contributions as isolated decisions.
Before making your 2026 contribution decision, honestly assess:
If you can't confidently answer these questions, you need professional guidance.
We've built our practice on a simple principle: Your taxes and retirement planning must work together seamlessly.
Most tax preparers just file returns. Most financial advisors just pick investments. Neither approach optimizes your lifetime wealth.
Our unique holistic tax plans integrate every aspect of your financial life: business income, retirement contributions, investment strategies, and long-term income planning.
We are Tax Planners and Financial Specialists who understand both sides of the equation.
"The plans of the diligent lead surely to abundance, but everyone who is hasty comes only to poverty." – Proverbs 21:5
Diligent planning creates abundance. Hasty decisions create poverty.
Your 2026 contribution strategy needs to be set now. Every month you delay is a month of lost tax optimization.
Get your no-obligation free assessment from UniFirst Financial and Tax Consultants. We'll analyze your specific situation and show you exactly which strategy maximizes your retirement income while minimizing your lifetime taxes.
Whether you're a business owner with fluctuating income or a working family trying to build security, we have the expertise to guide your retirement planning decisions.
The difference between choosing correctly and guessing incorrectly could literally be hundreds of thousands of dollars over your lifetime.
Don't leave that money on the table.
Contact UniFirst Financial and Tax Consultants today. Build a customized tax and retirement strategy that works for your unique situation: not a generic plan that leaves you vulnerable to excessive taxation.
Visit us at https://unifirstfinancial.com/contact or call to schedule your comprehensive assessment.
Your retirement income for life starts with the right decisions today.
UniFirst Financial and Tax Consultants specializes in holistic tax planning and retirement income strategies for business owners and working families. The Safety First Strategy focuses on building guaranteed income streams that last your entire lifetime while minimizing taxes at every stage.
Our strategies are unlike those offered anywhere else in the financial industry
- we offer a no obligation free assessment so you can put our claim to the test.