Vacation’s Over — Now Let’s Talk Tax Strategy
You did it.
You unplugged.
You sipped bubbly by the lake, lounged in flip-flops, maybe even ignored your inbox for a full 48 hours (a personal best).
But now the beach bags are back in storage, and your inbox is looking a little... overwhelming.
Welcome back.
Vacation’s over — and it’s time to talk about tax strategy.
Retirement Isn’t a Permanent Vacation (Especially for Your Taxes)
Here’s a harsh-but-true reality: Just because you’ve stopped working doesn’t mean the IRS stops taking.
In fact, many retirees are shocked to learn:
Social Security can be taxable – although the new tax bill may put an end to that!
Medicare premiums can skyrocket due to IRMAA Surcharges
Required Minimum Distributions (RMDs) can trigger a higher tax bracket
And capital gains from downsizing your home, selling a business, or cashing out investments can still haunt you in April
That retirement tax-free dream? It’s more myth than margarita — unless you plan ahead.
Why Fall Is the Most Important Season for Tax Planning
The last few months of the year aren’t just for pumpkin spice and football.
They’re your final window to make strategic tax decisions that could:
Potentially cut your lifetime tax bill
Reduce future RMDs
Lower your Medicare premiums
Or even fund your legacy, tax-efficiently
And once the ball drops on New Year’s Eve? That window slams shut.
4 Year-End Tax Moves Every Retiree Should Consider
1. Roth Conversions While You Still Can
If your income is lower this year — or you’re in a temporary tax “valley” before RMDs begin — now might be the perfect time to convert traditional IRA funds into a Roth.
Pay a little tax now, avoid a lot of tax later.
Bonus: Roth IRAs don’t have RMDs, which can reduce IRMAA and future headaches.
2. Charitable Giving with a Twist
Sure, you could write a check. But if you’re over 70½, you can also make Qualified Charitable Distributions (QCDs) directly from your IRA — tax-free.
Or consider a Donor-Advised Fund to stack deductions while gifting strategically.
Pro Tip: This can help satisfy RMDs and reduce your taxable income.
3. Review Your Income Bracket
Sounds simple, but most people don’t actually know where they fall — especially if you’ve sold assets, received a pension payout, or have multiple income sources.
Knowing your bracket now helps avoid surprises later and can open up the opportunity for implementing smart strategies before year-end.
4. Get Ahead of IRMAA
If you’re approaching Medicare age or already enrolled, your modified adjusted gross income (MAGI) determines how much you pay for premiums — two years in advance.
Translation: What you earn (or convert) this year affects your 2027 costs.
Planning = Power.
Retirement Isn’t the End of Tax Strategy — It’s the Beginning
You didn’t work this hard to give the IRS a raise.
And you didn’t retire and expect to have a huge tax bill or bloated Medicare premiums.
Ready to enjoy retirement without tax regrets?
Because peace of mind shouldn’t end with summer.
