470 W. 78th St Suite 200, Chanhassen, MN 55317
Call Me Today: (952) 470-0750

Could A Retirement Tax Advisor Help You Unlock The Retirement Of Your Dreams?

10 Feb

By: Colleen Weber

News and Updates / Retirement Planning / Tax Planning

Comments: No Comments.

By Colleen Weber, CFP®, CPA

Retirement will be the best time of your life! You’re ready to leave the 9-5 world behind and kick back and enjoy time with family and friends. You’ve worked hard for your money and have built substantial retirement assets. Do you know how taxes will affect your nest egg? Taxes in retirement isn’t something that everyone thinks about, but they should, especially if they have multiple tax-deferred plans. You need a tax strategist by your side helping you make choices that might affect the rest of your retirement. 

Why Tax Planning In Retirement Matters

When you retire, your income sources are likely produced from a variety of assets, including employer-sponsored retirement plans, Social Security, personal IRAs, or other income-generating investments. Each asset has different tax characteristics, and properly structured investments can help lower your tax burden if you plan how and when you’ll withdraw from each.

For example, most people will receive Social Security benefits during retirement, but 85% of your Social Security income can be taxed at your regular tax rate if your income exceeds a certain amount. (1) A tax strategy advisor can help you determine how Social Security will fit into your overall plan and structure your other investments to alleviate the tax burden on Social Security income.

And when it comes to your personal savings, a $50,000 withdrawal from a Roth IRA will have a wildly different tax impact than that same distribution from a traditional IRA. If you blindly take your money and run, you could trigger an avalanche of higher Social Security taxes, investment surtax, capital gains taxes, and even higher Medicare premiums, which will eat away at the funds that were supposed to carry you through retirement. Creating a tax plan can help you avoid these financial pitfalls. 

Speak with a financial planner or tax advisor about creating a tax-efficient distribution strategy for retirement. This professional can look at your tax bracket, retirement accounts, and Social Security to help you withdraw money in the most tax-efficient way. 

Do You Need A Tax Strategy Advisor Who Specializes In Retirement?

A professional who is experienced in retirement tax planning can look at your tax bracket, retirement accounts, and Social Security to help you withdraw money in the most tax-efficient way. You should consider partnering with a retirement tax strategy advisor if:

  • You have multiple retirement investments that generate taxable, tax-deferred, and tax-free assets.
  • You need to strategically bunch tax deductions due to changes in standard deductions under the Tax Cuts and Jobs Act.
  • You’re interested in minimizing your lifetime tax liability.
  • You have a substantial portion of your retirement savings in tax-deferred accounts.
  • Your modified adjusted gross income as an individual filer exceeds $34,000 per year or $44,000 as married joint filers.  
  • You want to minimize your Medicare premiums caused by income-related monthly adjustment amounts for high-income earners. 

Retirement tax planning should start well before you actually retire so you’re taking advantage of tax-deferral opportunities and tax-efficient investing. Instead of worrying if you’ve simply saved enough money to be comfortable, a tax strategy advisor who specializes in retirement can help you unlock the retirement of your dreams by finding opportunities to reduce your tax burden.

You Need A Partner

I am passionate about helping others retire with confidence, and tax planning is one way to gain assurance that you are on the right track. If your current advisor hasn’t spoken to you about taxes during retirement, then book a free introductory meeting online or call me at (952) 470-0750. I’d be happy to discuss your options. 

About Colleen

Colleen Weber is a fee-only financial advisor, CERTIFIED FINANCIAL PLANNER™ professional, and CPA with more than 15 years of financial planning experience. Providing comprehensive financial planning and wealth management, she specializes in serving clients nearing retirement, retirees, busy professionals, and women. She is passionate about developing financial plans that save clients on taxes, and investment strategies that help them pursue their goals. Learn more about Colleen by connecting with her on LinkedIn or booking a complimentary phone call meeting.


(1) https://www.ssa.gov/benefits/retirement/planner/taxes.html#:~:text=Income%20Taxes%20And%20Your%20Social%20Security%20Benefit,-Some%20of%20you&text=between%20%2425%2C000%20and%20%2434%2C000%2C%20you,your%20benefits%20may%20be%20taxable