Tax Planning Opportunities in the Years Before Retirement

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The years leading up to retirement can present valuable opportunities to reduce future taxes and improve retirement income. By taking a proactive approach, individuals may be able to lower their lifetime tax burden and create greater flexibility during retirement.

If you're age 50 or older, take advantage of catch-up contributions to retirement accounts such as 401(k)s and IRAs. These contributions can reduce current taxable income while increasing retirement savings.

Converting a portion of a traditional IRA to a Roth IRA may help reduce future Required Minimum Distributions (RMDs) and create a source of tax-free income in retirement.

Large balances in traditional retirement accounts can lead to significant taxable distributions later in life. Planning ahead may help reduce the impact of future RMDs on your tax situation.

The years before retirement can be an ideal time to evaluate investment holdings, harvest losses, and manage capital gains strategically.

Decisions about when to claim Social Security and how much taxable income to generate can affect both taxes and future Medicare premiums.

Retirement tax planning is most effective when implemented over several years. A thoughtful strategy before retirement can help preserve wealth, increase after-tax income, and provide greater financial confidence in retirement.

We can help identify opportunities to reduce taxes before and during retirement.