The dust has settled on another tax season. Whether you wrote a big check to the IRS or received a modest refund, the temptation is always the same — move on and not think about taxes until next April. But for many in retirement or approaching retirement, that can be a missed opportunity.
The best tax strategies don’t happen in April — they happen now.
With eight full months left in the year, this is the ideal time to assess your current situation and take proactive steps to reduce next year’s tax bill. Here are five smart moves to consider:
1. Revisit Your Income Strategy
Retirement income doesn’t have to be on autopilot. How you structure your withdrawals — from IRAs, Roth IRAs, taxable accounts, or annuities — can make a significant difference in your annual tax liability.
Now is a great time to evaluate your income mix for the year, ensuring you're not accidentally triggering unnecessary taxes or bumping into IRMAA surcharges on Medicare.
2. Consider Roth Conversions (Strategically)
Roth conversions are one of the most powerful long-term tax planning tools — especially if you expect future tax rates to rise or want to reduce required minimum distributions (RMDs) later on.
With 2025 income still unfolding, you have time to do partial Roth conversions within your current tax bracket. Don’t wait until December when time is tight and markets may be volatile.
3. Maximize Charitable Giving Efficiency
If you’re charitably inclined, now’s the time to plan ahead. Consider whether qualified charitable distributions (QCDs) from IRAs make sense this year — especially if you’re over 70½. Alternatively, you might explore donor-advised funds (DAFs) to bundle charitable gifts for maximum impact.
These strategies can provide both meaningful support to the causes you care about and significant tax benefits.
4. Start Planning for RMDs (Even If They’re Not Due Yet)
Even if you’re not yet required to take RMDs, now is the time to get ahead of the curve. If you're already taking them, make sure your withdrawals are planned tax-efficiently — not just handled by default.
Splitting distributions across the year, or coordinating them with income needs, can avoid year-end surprises.
5. Use Market Volatility to Your Advantage
With ongoing market uncertainty, now is an ideal time to revisit your tax strategy. Volatile markets can create opportunities — whether it’s for tax-loss harvesting, rebalancing, or converting investments to Roth while values are temporarily lower.
Don’t let market noise paralyze you. Instead, let’s use it as a planning advantage.
Good tax planning is proactive, not reactive. The difference between a smooth, tax-efficient retirement and one riddled with surprises often comes down to what happens in the months after tax season ends.
Let this be your reminder: now is the time to look ahead — and we’re here to help.
