VIDEO: What Tax Issues Should Retirees Be Aware Of? 5 Retirement Tax Traps to Know

Retirement doesn’t mean you’re done paying taxes, and your tax situation can actually become more complicated after you stop working. Social Security, retirement accounts, pensions, investments, and Medicare can all interact in ways that affect how much of your money you keep.

In this video, we break down 5 important tax issues retirees need to understand: 

  • Required Minimum Distributions (RMDs) 
  • When they begin and why large withdrawals from traditional retirement accounts can increase your taxable income. 
  • Taxes on Social Security Benefits – Why up to 85% of your Social Security benefits may be included in taxable income. 
  • Medicare IRMAA Surcharges – How your income today could affect your Medicare Part B and Part D premiums in the future.
  • Retirement Account Withdrawal Strategies – Why the order you withdraw from taxable, tax-deferred, and tax-free accounts matters.
  • Roth Conversions – How converting traditional retirement savings to a Roth can create a tax bill today but potentially provide tax-free qualified withdrawals later.

 

Retirement tax planning is about much more than your tax bracket. The decisions you make about withdrawals, Roth conversions, Social Security, and retirement income can have consequences that show up years later.

If you’re approaching retirement or already retired, understanding these tax issues can help you make more intentional decisions, protect your quality of life, and potentially make your retirement income last longer.

Topics covered: 

  • Retirement tax planning 
  • RMDs and required minimum distributions
  • Social Security taxation 
  • Medicare IRMAA 
  • Roth conversions
  • IRA withdrawal strategies 
  • Taxable vs. tax-deferred vs. tax-free accounts 
  • Retirement income planning 
  • Taxes in retirement

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This material is intended for educational purposes only. You should always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns. Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost. Dorval & Chorne Financial Advisors is a registered investment adviser with the SEC. Registration of an investment adviser does not imply a certain level of skill or training.

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