Is Tax Protection right for me?

The desire to lower taxes is pretty universal, but everyone's tax circumstances are unique, which is why we offer the Tax Protection package. This package comes with three features: WiseHarvesting, Selective Trading, and IRAutomation. You can choose to turn on one, none, or all three of the Tax Protection features depending on your current financial situation. Below are some considerations as you make your decision:

WiseHarvesting:

WiseHarvesting requires that you have a taxable Personal Investment Account open with Axos Invest Managed Portfolios (an account other than an IRA). Our WiseHarvesting feature does analyze across all of your Managed Portfolios accounts, including your Managed Portfolios IRA(s), to minimize wash sales. Using an auto-deposit will help maximize WiseHarvesting’s potential to harvest investment losses.

Selective Trading:

Selective Trading is designed for clients who are at risk of wash sales by trading the same ETFs in outside investment account(s) as those traded in their Managed Portfolios portfolio(s). This feature can also be used even if you are not using WiseHarvesting and allows you to remove (or activate) ETFs the eligible investment categories.

Other than WiseHarvesting, this feature is popular for the following types of clients:

  • If you own a specific ETF in accounts not with Axos Invest Managed Portfolios
  • If you do not want a specific ETF in your Managed Portfolios account
  • If you’re restricted from owning a specific ETF

Please keep in mind that removing an ETF using Selective Trading will liquidate that holding and may result in tax consequences.

IRAutomation:

IRAutomation helps you set your retirement and tax savings on auto-pilot each year. Managed Portfolios also offers IRAs as part of the IRAutomation feature, including Traditional IRAs, Roth IRAs, and SEP IRAs.

IRAs provide valuable tax benefits to incentivize us to save for retirement each year. To attempt to capitalize on these incentives, Axos Invest Managed Portfolios adds an automation feature that separates our management from the way others may manage your IRA.  

From guidance on choosing your IRA to managing your annual deposits to starting a year-end conversion, IRAutomation will let you set your annual retirement strategy, monitor its course, and make adjustments automatically each year.

IRAutomation also offers the ability to do IRA Conversions for clients who wish to contribute to a Roth IRA for the calendar year but aren't eligible due to IRS restrictions. You can learn more about Roth IRA eligibility here.

As you decide whether this package is for you remember to consult the overview, eligibility, and pricing tabs. As prior to any investment decision, you should always consult a tax professional before turning on any of the features.

To turn on Tax Protection or to learn more, go to the Packages section of your account: https://axosinvest.com/dashboard/plans

Axos Invest, Inc., and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

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