Key Takeaways:

  • Roth Conversion: Convert to a Roth IRA in low-income years to save on future taxes.
  • Capital Gains: Sell investments in low tax brackets to reduce capital gains tax.
  • Medicare Income: Manage income to prevent increases in Medicare Part B premiums.
  • Charitable Giving: Make IRA charitable donations to lower taxable income.

As we embrace the final chapter of the year, it's a time filled with opportunity‚ÄĒa chance to make strategic tax moves that can lead to joyful savings and a sense of fulfillment in your financial journey. Here are five empowering tax strategies for retirees to consider before the clock strikes midnight on December 31st:

  1. Embrace Roth Conversions During 'The Valley': This period, nestled between retirement and the resurgence of income from Social Security and RMDs, presents a unique opportunity. Converting from traditional retirement accounts to Roth IRAs could be a wise move if you anticipate higher tax rates in the future. To navigate this strategy, consider joining the GetSetUp class "Understanding Roth Conversions" to gain deeper insights.
  2. Harvest Your Capital Gains Wisely: If your portfolio has appreciated, you might find yourself in a position to sell investments while in a lower tax bracket. This could mean paying less in capital gains taxes. Our "Investment Strategies for Tax Efficiency" class can guide you through this process.
  3. Stay Informed on Medicare Thresholds: Knowledge is power, especially when it comes to understanding how income levels affect Medicare Part B premiums. To avoid crossing those thresholds unwittingly, our "Navigating Medicare Premiums" class can be your compass.
  4. Balance RMDs with Retirement Contributions: While RMDs are a must, contributing to retirement accounts is a choice that can still be made. Striking the right balance could lower your taxable income. Explore this further with our "Retirement Planning: RMDs and Contributions" workshop.
  5. Leverage Qualified Charitable Distributions (QCDs): Giving from your IRA not only supports the causes you care about but can also reduce your gross income, potentially lowering Medicare premiums. Learn how to make the most of your charitable spirit in our "Charitable Giving with QCDs" class.

As you consider these strategies, remember that your financial decisions should reflect your personal narrative‚ÄĒone that's as unique as you are. We encourage you to consult with a tax professional to tailor these strategies to your story.


Nov 9, 2023