What tax shelters can high earners actually use besides the standard options?

The main strategies beyond the basics you've already covered (401k, HSA, 529) would include: 1) Backdoor Roth IRA - Since you're over the income limit for direct Roth contributions, you can make a non-deductible traditional IRA contribution and then convert it to a Roth. There's no income limit on conversions. 2) Mega Backdoor Roth - If your employer plan allows after-tax contributions (not just Roth), you may be able to contribute up to the total 401k limit ($69,000 for 2025) minus your standard contributions and employer match. 3) Cash value life insurance - Specifically properly structured policies can provide tax-advantaged growth and tax-free access to funds. 4) Qualified Opportunity Zones - These allow you to defer capital gains tax by investing in designated economically distressed communities. 5) Real estate investments - The depreciation deduction can offset income, and strategies like 1031 exchanges can defer capital gains tax.

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If you're dealing with IRS issues around any of these high-income strategies, getting actual IRS clarification is crucial but nearly impossible with their phone lines. I spent WEEKS trying to get through about a similar situation last year. Finally used https://claimyr.com after seeing it mentioned here, and they got me connected to an IRS agent in about 15 minutes. You can see how it works at https://youtu.be/_kiP6q8DX5c - it's basically a service that navigates the IRS phone tree and waits on hold for you, then calls you when they have an agent on the line. Ended up getting clarification on how the IRS treats specific depreciation scenarios for my real estate investments and confirmation about a mega backdoor Roth strategy I was considering. Saved me thousands in potential penalties from doing something incorrectly.

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Don't overlook investing in oil and gas partnerships - they come with significant tax advantages for high earners through depletion allowances and intangible drilling costs (IDCs). In some cases, you can deduct up to 80-90% of your investment in the first year, which can significantly offset other income. Obviously there are risks involved, but if you're in a high tax bracket and have some appetite for alternative investments, it's worth considering as part of your portfolio. Make sure you work with a reputable company though, as there are plenty of sketchy operators in this space.

For truly high earners ($500k+), consider a Private Placement Life Insurance (PPLI) policy. It's basically a tax shelter wrapped in life insurance that allows you to invest in alternative assets like hedge funds and private equity with tax-free growth and tax-free access through policy loans. Minimum investments usually start at $1M though.