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§ Strategy Guide

BOCA RATON · UPDATED MAY 2026

Life Events Financial Guide

Every major life event has tax and financial implications that are easy to overlook in the moment. These are the checklists we walk clients through when things change.

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Getting married

Marriage changes your filing status, may change your bracket, and may surface planning opportunities (or penalties).

  • Update W-4 withholding at both jobs
  • Compare "married filing jointly" vs. "married filing separately" in edge cases
  • Update beneficiaries on retirement accounts, life insurance, bank accounts
  • Consolidate or separate banking intentionally, not by default
  • Review health insurance options — one spouse's plan may beat combining

Becoming a parent

New parents unlock several tax benefits AND gain new planning obligations.

  • Apply for the child's SSN immediately (required for dependent claim)
  • Child Tax Credit — up to $2,000 per qualifying child under 17
  • Dependent care FSA or Child & Dependent Care Credit — don't choose both without modeling
  • 529 college savings plan — start small, start early, compound for 18 years
  • Update estate plan: guardianship for minor children, beneficiary designations

Buying a home

Homeownership creates deductible interest (if you itemize) and a lifetime capital gains exclusion when you sell.

  • Mortgage interest deductible if total itemized > standard deduction
  • Property tax deductible up to $10K SALT cap
  • Keep closing statement + records of major improvements (basis adjusts your gain on sale)
  • Section 121 exclusion: $250K/$500K capital gain exclusion on primary-residence sale after 2 years of ownership + use

Starting or changing jobs

Job transitions are one of the highest-ROI tax-planning moments because withholding + contributions reset.

  • Roll over old 401(k) to new employer's plan or to an IRA — don't cash out
  • Review new W-4; adjust if you had tax due / large refund last year
  • Coordinate new benefits enrollment (health, HSA, FSA, 401(k) match, RSUs)
  • Don't miss the 401(k) match — it's an immediate 100% return on your contribution

Divorce

Divorce is tax-intensive. Poor planning can cost both parties substantially.

  • Filing status change year of divorce (must file single/HoH even if divorce was Dec 31)
  • Alimony under current rules is NOT deductible to payer / NOT taxable to recipient
  • Division of retirement accounts requires QDRO (Qualified Domestic Relations Order)
  • Transfer of home — basis follows the transferred spouse; consider timing of sale
  • Update beneficiaries, wills, powers of attorney

Retirement

The retirement transition is the single biggest tax-planning moment of most people's lives. Key timing and structural decisions:

  • Social Security timing — claim at 62, 67, or 70? Math varies by health + spousal benefits
  • Required Minimum Distributions begin at age 73 (current law)
  • Medicare enrollment at 65 — miss the window and face permanent premium surcharges
  • Roth conversions in low-income years between retirement and RMDs
  • Move from accumulation to distribution — tax efficiency matters more than ever

Inheritance or large windfall

Inherited assets generally receive a "stepped-up basis" — enormous tax benefit. But decisions about what to sell, what to hold, and how to deploy cash have major downstream consequences.

  • Inherited IRAs — distribution rules differ for spouses vs. non-spouses, pre-2020 vs. post-2020
  • Step-up in basis erases built-in capital gains on inherited taxable assets
  • Estate tax — currently $13.99M federal exemption (2025) per individual
  • Florida has no state estate or inheritance tax

Other resources

Tax Strategies for Business Owners Tax Strategies for Individuals Business Strategies

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§ FAQ

Questions we hear about life's big moments.

How does the Child Tax Credit work when I have a new baby?

The Child Tax Credit is worth up to $2,000 per qualifying child under 17. You must apply for your child's Social Security number right away, because it is required to claim the child as a dependent. New parents should also weigh a dependent care FSA against the Child and Dependent Care Credit rather than assuming both, since the right choice depends on your numbers.

Is mortgage interest deductible after buying a home?

Mortgage interest is deductible only if your total itemized deductions exceed the standard deduction, so it does not help everyone. Property taxes are deductible up to the $10,000 SALT cap. Keep your closing statement and records of major improvements, because those adjust your basis and affect the gain when you eventually sell.

Do I have to pay capital gains tax when I sell my primary home?

The Section 121 exclusion lets you exclude $250,000 of gain if single, or $500,000 if married, on the sale of a primary residence after you have owned and used it for two years. That is a lifetime benefit tied to how you use the home. Good recordkeeping of improvements matters, since your basis reduces the taxable gain.

Is alimony taxable or deductible after a divorce?

Under current rules, alimony is not deductible for the person paying it and not taxable to the person receiving it. Divorce also changes your filing status for the whole year, so if the divorce is final by December 31 you must file single or head of household. Dividing retirement accounts requires a Qualified Domestic Relations Order (QDRO), and you should update beneficiaries, wills, and powers of attorney.

When do required minimum distributions and Medicare start in retirement?

Under current law, required minimum distributions begin at age 73, and Medicare enrollment happens at 65 — miss that window and you can face permanent premium surcharges. Social Security can be claimed at 62, 67, or 70, and the best age depends on your health and spousal benefits. The low-income years between retiring and starting RMDs are often a window for Roth conversions.

How is inherited money or property taxed in Florida?

Inherited assets generally receive a stepped-up basis, which erases the built-in capital gains that had accrued during the prior owner's life. Florida has no state estate or inheritance tax, and the federal estate tax exemption is $13.99 million per individual for 2025. Inherited IRAs follow different distribution rules for spouses versus non-spouses and for accounts inherited before versus after 2020, so those need careful handling.

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