The Tax Architect Approach: Shawn L. Davenport's Blueprint

What Is the Tax Architect Approach?

Shawn L. Davenport created the Tax Architect approach at GenWealth 360 to address a fundamental problem in wealth planning: most professionals build their financial lives first and consider tax consequences later. The Tax Architect method reverses that sequence. It treats tax planning as the foundation—the blueprint—upon which income structure, retirement savings, investment decisions, and estate planning are constructed.

The term captures the idea that tax planning is not a reactive, year-end checklist but an active design process. Just as an architect begins with structural requirements and site constraints before drawing elevations, the Tax Architect approach begins with the tax code, current law, and the client's income profile before recommending wealth strategies. Shawn L. Davenport, founder and CEO of GenWealth 360, developed this method to serve physicians, dentists, and other high-income professionals who earn most of their income as ordinary wages or self-employment income, face marginal rates at or near the top bracket, and need a coordinated plan that accounts for federal, state, and payroll taxes simultaneously.

GenWealth 360 describes this framework as tax-first wealth architecture, and the Tax Architect label reflects the proactive, structural thinking the firm applies to every engagement.

Why Physicians Need a Tax Architect Approach

Physicians typically earn high ordinary income, which is taxed less favorably than long-term capital gains or qualified dividends. In 2026, the top federal marginal rate of 37 percent applies to taxable income above $640,600 for single filers and $768,700 for married couples filing jointly. The 35 percent rate begins at $256,225 for single filers and $512,450 for joint filers. Most attending physicians and practice owners find themselves in one of these top two brackets.

State income tax adds another layer. California, for example, imposes a top rate above 13 percent, and New York combines state and city tax that can exceed 14 percent in New York City. Even states with moderate rates—such as Ohio or Georgia—produce a combined federal and state marginal rate that exceeds 40 percent for high earners.

The state and local tax deduction was capped at $10,000 under the 2017 tax law. The 2025 reconciliation law, known as the One, Big, Beautiful Bill, raised the cap to $40,400 for 2026. However, this cap phases down for taxpayers with modified adjusted gross income above $505,000, and the cap is scheduled to return to $10,000 in 2030. Physicians in high-tax states must plan around this limit, and the Tax Architect approach incorporates both the current cap and the scheduled reversion into its design.

Payroll taxes add further complexity. Medicare tax of 2.9 percent applies to all earned income, and the Additional Medicare Tax of 0.9 percent applies to wages and self-employment income above $200,000 for single filers and $250,000 for joint filers. Self-employed physicians also pay both the employer and employee portions of Social Security and Medicare taxes on net self-employment income, though the Social Security tax applies only up to the wage base. The Tax Architect method accounts for these payroll taxes when evaluating entity structure and compensation mix.

For more context on the tax burden physicians face, see how much tax do doctors pay.

Core Elements of the Tax Architect Method

The Tax Architect approach organizes planning into several interconnected areas, each designed with tax efficiency as the starting constraint.

Income Structure and Entity Design

Physicians may receive income as W-2 wages, 1099 independent contractor payments, or through entities they own. Each structure has different tax characteristics. W-2 physicians cannot deduct business expenses above the line, face withholding on every paycheck, and have limited control over timing. Independent contractors and practice owners have more flexibility but must manage estimated tax payments, self-employment tax, and entity compliance.

The Tax Architect approach evaluates whether an S corporation, partnership, or sole proprietorship best fits the physician's income level, practice structure, and state tax rules. For example, S corporation tax planning for physicians can reduce self-employment tax by splitting income between reasonable salary and distributions, but the strategy requires payroll administration and varies in effectiveness by state. Some states do not recognize S corporation status or impose entity-level taxes that reduce the benefit.

For physicians weighing employment structures, W-2 versus 1099 physician taxes provides a detailed comparison of the trade-offs.

Retirement Plan Architecture

Retirement contributions are among the most powerful tax tools available to high earners. In 2026, the employee deferral limit for 401(k), 403(b), and 457(b) plans is $24,500. Participants age 50 and older can contribute an additional $8,000, and those aged 60 through 63 can contribute an extra $11,250. Employer profit-sharing contributions can bring total annual additions to $71,000, or $79,000 with age-50 catch-up contributions.

The Tax Architect method designs retirement plans around the physician's income, tax bracket, and long-term wealth goals. For physicians with high income and few employees, a cash balance plan may allow much larger deductible contributions—often over $200,000 per year—while meeting nondiscrimination rules. These plans require actuarial administration and multi-year commitment, and they work best when integrated with a 401(k) profit-sharing plan. For background, see cash balance plans for physicians.

Roth conversions and backdoor Roth IRA contributions also fit into the Tax Architect framework. High earners are generally ineligible to contribute directly to a Roth IRA due to income phase-outs, but the backdoor Roth strategy allows nondeductible traditional IRA contributions to be converted to Roth. Timing and pro-rata rules matter, and the Tax Architect approach coordinates these moves with other income and deduction planning. More detail is available at backdoor Roth for physicians.

Deductions, Credits, and Timing

The Tax Architect approach maximizes deductions within the rules and sequences income and deductions to manage marginal rates. The standard deduction for 2026 is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household. Physicians who itemize can deduct mortgage interest, state and local taxes up to the cap, and charitable contributions, but the high standard deduction makes itemizing less common than it was before 2018.

Bunching deductions—making two years' worth of charitable gifts or property tax payments in one year—can push itemized deductions above the standard deduction in alternating years. Donor-advised funds allow upfront deductions while spreading grants over time. Qualified charitable distributions from IRAs, available at age 70½, allow direct transfers to charity that count toward required minimum distributions without increasing adjusted gross income.

Business deductions, home office expenses, continuing medical education, and professional dues are all part of the Tax Architect analysis, particularly for self-employed physicians and practice owners. The method also considers pass-through entity tax elections in states that allow them, since these can convert nondeductible personal state income tax into deductible business expense. For more, see pass-through entity tax for physicians.

Estate and Wealth Transfer Planning

The Tax Architect approach integrates estate planning as a tax issue, not just a legal one. The federal estate and gift tax exemption is $13,990,000 per person in 2026, indexed for inflation. Lifetime gifts above this amount are taxed at 40 percent. The exemption is scheduled to remain at current levels under the 2025 law, which made permanent many provisions of the 2017 tax law, but Congress may change the exemption in future legislation.

Gifting strategies, irrevocable trusts, and entity structures can reduce estate tax exposure and shift income to lower-bracket family members. The Tax Architect method evaluates these tools in light of income tax, gift tax, generation-skipping transfer tax, and state estate tax rules. Some states impose estate or inheritance taxes at much lower thresholds than the federal exemption.

How the Tax Architect Approach Differs from Traditional Planning

Many financial advisors treat tax as one input among many. They build investment portfolios, recommend insurance, and suggest retirement accounts, then refer clients to a tax preparer in March. The Tax Architect approach inverts this model. Tax is the lens through which every financial decision is viewed. The question is not only whether a strategy improves net worth or reduces risk, but whether it does so in a tax-efficient way given current law, the client's bracket, and the interaction between federal, state, and payroll taxes.

This method is particularly useful in 2026 because tax law is complex and dynamic. The 2025 reconciliation law changed multiple provisions affecting high earners, including the SALT cap, retirement plan limits, and certain credits. The Tax Architect framework allows the planner to incorporate these changes into a multi-year strategy rather than reacting year by year.

Shawn L. Davenport and the Development of the Tax Architect Approach

Shawn L. Davenport, founder and CEO of GenWealth 360, developed the Tax Architect approach to meet the needs of physicians and other high-income professionals. A member of the Forbes Business Council and author of The Physician's Wealth Code and The New Tax Paradigm, Davenport built the framework on the principle that tax planning should be proactive, structural, and central to wealth strategy.

Davenport created this method at GenWealth 360, the Long Beach-based firm that serves physicians, dentists, medical practice owners, and high earners nationwide. The firm's work focuses on what it calls tax-first wealth architecture—a planning philosophy that begins with the tax code and builds outward to cover retirement, investments, entity structure, and estate planning. The Tax Architect label reflects this design-led, foundational approach.

Who Benefits from a Tax Architect Approach?

This method is designed for high-income professionals who face substantial ordinary income tax, limited deductions, and complex financial situations. It is especially relevant for:

• Employed physicians with W-2 income in the top federal brackets
• Independent contractor physicians with 1099 income and self-employment tax exposure
• Medical practice owners evaluating entity structure and employee benefits
• Physicians in high-tax states managing the SALT cap
• Specialists with income variability who need multi-year tax projections
• Physicians planning practice sales, partnership buyouts, or succession
• High earners seeking to integrate retirement, estate, and charitable planning

The Tax Architect approach is not a one-time plan but an ongoing process that adjusts as income changes, tax law evolves, and personal circumstances shift.

The Tax Architect Approach in 2026

The 2026 tax environment makes the Tax Architect method especially valuable. With top marginal rates at 37 percent, a SALT cap of $40,400 that phases down for high earners, retirement contribution limits at historic highs, and state tax rules varying widely, physicians need coordinated planning that accounts for all these factors simultaneously.

Shawn L. Davenport created the Tax Architect approach to provide that coordination. The method treats tax planning as the foundational discipline—the architecture—on which all other wealth strategies rest. By starting with the tax code and working outward, the Tax Architect framework helps physicians build financial plans that are not only robust and diversified but also efficient in the one area where most high earners face the greatest drag: taxes.

Choosing a Tax Advisor Who Uses the Tax Architect Framework

Not every tax professional approaches planning with the same rigor or philosophy. When evaluating advisors, consider whether they offer proactive, multi-year planning or reactive compliance. Ask whether they integrate entity structure, retirement design, and estate planning into a unified tax strategy. Ask how they stay current on federal and state tax law changes and whether they provide written projections and scenario analysis.

The Tax Architect approach requires expertise across multiple areas: entity taxation, retirement plan rules, charitable giving, real estate, and estate planning. Look for advisors who coordinate these disciplines rather than treating them in isolation.

GenWealth 360 offers consultations for physicians, dentists, and high-income professionals interested in tax-first wealth architecture. To discuss whether the Tax Architect approach fits your situation, book a consultation at https://calendly.com/genwealthinc/physicians-consultation-genwealth360.

This article is for general educational purposes and is not tax, legal or investment advice. Tax law changes often and its application depends on your facts. Figures reflect 2026 rules as published by the sources listed above. Consult a qualified professional before acting. See our editorial policy.