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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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.

At your income level, you should also look into defined contribution plans beyond just the basic 401k. If you have any self-employment income (consulting, side business, etc.), you could set up a SEP-IRA or Solo 401k for that income stream, which opens up additional contribution limits. Another strategy worth exploring is tax-loss harvesting in your taxable investment accounts - systematically realizing losses to offset gains and up to $3k of ordinary income annually, while using the wash sale rule strategically. For charitable giving, consider donating appreciated securities directly instead of cash - you avoid capital gains tax on the appreciation while still getting the full deduction. If you're not already itemizing, bunching multiple years of charitable contributions into alternating years can help you exceed the standard deduction threshold. Also look into qualified small business stock (QSBS) investments if you're comfortable with startup risk - under Section 1202, you can exclude up to $10M or 10x your basis in gains when you sell qualifying small business stock held for 5+ years. The key is finding a tax professional who specializes in high-earner strategies rather than just basic tax prep. Many CPAs aren't familiar with these more advanced techniques.

Another strategy worth considering at your income level is a Deferred Compensation plan if your employer offers one. These plans let you defer a portion of your current salary (and the associated tax liability) to future years when you might be in a lower bracket. The downside is you're essentially lending money to your employer unsecured, so there's credit risk if the company goes under. Also look into Conservation Easements if you're interested in land conservation and have significant tax liability to offset. You can donate development rights on property (land you own or purchase specifically for this purpose) and potentially get a charitable deduction worth several times your investment. However, the IRS has been scrutinizing these heavily lately, so make sure any program you consider is well-established and conservative in its valuation approach. For your existing investments, consider tax-efficient fund placement - holding tax-inefficient investments in your tax-advantaged accounts (401k, IRA) and tax-efficient index funds in taxable accounts. This can meaningfully reduce your annual tax drag on investment growth.

Consider looking into Captive Insurance Companies (CICs) if you own a business or have significant business income. Under Section 831(b), you can elect to have your captive taxed only on investment income, not insurance premiums, for captives with less than $2.3M in annual premiums. This allows you to deduct legitimate business insurance premiums paid to your own captive, while the captive accumulates wealth in a tax-advantaged structure. Another often-overlooked strategy is investing in Qualified Opportunity Zone funds, which allow you to defer capital gains taxes by investing those gains into designated economically distressed communities. You get a 10% step-up in basis after 5 years, 15% after 7 years, and if held for 10+ years, any appreciation in the QOZ investment itself is tax-free. For immediate tax relief, look into Cost Segregation studies if you own any commercial real estate or rental properties. This allows you to accelerate depreciation on certain components of buildings (like flooring, lighting, landscaping) from 27.5-39 years down to 5-15 years, creating significant upfront deductions. Finally, consider establishing a Charitable Remainder Trust (CRT) if you have highly appreciated assets. You get an immediate charitable deduction, avoid capital gains tax on the sale of the appreciated assets within the trust, and can receive income payments for life while ultimately benefiting charity.