08 Sep Retirement Tax Planning: How to Prepare for an Uncertain Tax Future

How Can You Plan for Taxes in Retirement When Tax Rates Keep Changing?

How much will you pay in taxes during retirement?

It sounds like a question that should have a straightforward answer.

It doesn’t.

To know exactly what you’ll pay, you would need to know what federal and state tax laws will look like years—or even decades—from now.

You would also need to know your future income, investment returns, retirement date, Social Security benefits, required minimum distributions, spending needs, deductions, charitable giving, healthcare expenses, and potentially what happens after the death of a spouse.

That’s a lot of unknowns.

But uncertainty doesn’t mean retirement tax planning is pointless.

It means the objective shouldn’t be to predict the future perfectly.

The goal of retirement tax planning isn’t to predict Congress. It’s to build a plan that gives you choices when the future arrives.

Why Is Retirement Tax Planning So Difficult?

One of the biggest challenges with retirement tax planning is that decisions made today can have consequences many years from now.

Consider someone deciding whether to contribute to a traditional 401(k) or a Roth 401(k).

With a traditional account, an eligible contribution may provide a tax benefit today, while withdrawals are generally taxable later.

With a Roth account, contributions are generally made with after-tax dollars, while qualified withdrawals can potentially be tax-free.

Which one is better?

The answer depends partly on something you don’t know:

How does the tax cost today compare with the tax cost you might otherwise pay in the future?

And tax laws aren’t the only unknown.

Your personal circumstances may change too.

You might:

• Retire earlier or later than expected;
• Earn more or less during your remaining working years;
• Have a different retirement lifestyle than originally planned;
• Receive more taxable retirement income than anticipated;
• Experience significant investment gains or losses;
• Move to another state;
• Inherit assets;
• Have substantial healthcare or long-term-care expenses; or
• Lose a spouse and eventually move from married filing jointly to single filing status.

That’s why retirement tax planning shouldn’t depend on one prediction about what your future tax bracket will be.

You Don’t Have to Predict Future Tax Rates Perfectly

People sometimes approach retirement tax planning as though there is one correct answer that can be calculated today.

For example:

“Taxes will probably be higher in the future, so shouldn’t I put everything into Roth accounts?”

Maybe.

But that conclusion skips an important question:

What tax rate would you pay to move the money into Roth today?

If you’re paying a significantly higher tax rate today to avoid a potentially lower tax rate later, the strategy may not produce the result you expected.

The opposite can also happen.

If you have an unusually low-income year and can move some money from a tax-deferred account into a Roth account at a relatively low tax rate, that opportunity may be worth evaluating.

Instead of trying to make one enormous prediction about future tax rates, retirement tax planning can involve evaluating opportunities as your circumstances change.

You don’t necessarily need the perfect tax prediction. You need a process for making decisions when opportunities arise.

What Is Tax Diversification in Retirement?

Investment diversification generally means not relying too heavily on a single investment or type of investment.

Tax diversification applies a similar concept to the tax characteristics of your accounts.

Depending on an individual’s circumstances, retirement assets may be held across different types of accounts, such as:

• Traditional IRAs and traditional 401(k)s;
• Roth IRAs and Roth 401(k)s; and
• Taxable brokerage accounts.

These accounts can receive different tax treatment.

Having retirement assets with different tax characteristics may provide more choices when deciding how to fund spending later.

That doesn’t mean everyone should have an equal amount in each type of account.

Nor does it mean tax diversification automatically lowers taxes.

The potential value is flexibility.

If nearly all of your retirement savings are in one type of account, you may have fewer options for managing how withdrawals interact with taxable income later.

How Are Traditional, Roth, and Taxable Accounts Different?

A simple way to think about retirement tax planning is to consider three broad tax buckets.

1. Tax-Deferred Accounts

Examples can include traditional IRAs and traditional 401(k)s.

Depending on the account and circumstances, contributions may provide a current tax benefit. Money can grow tax-deferred, and distributions are generally subject to ordinary income tax when withdrawn.

These accounts can eventually be subject to required minimum distribution rules.

2. Roth Accounts

Examples include Roth IRAs and Roth 401(k)s.

Contributions are generally made with after-tax dollars. Qualified distributions can be received free from federal income tax if applicable requirements are satisfied.

Roth accounts can therefore provide a different source of retirement income from traditional tax-deferred accounts.

3. Taxable Investment Accounts

A taxable brokerage account doesn’t receive the same tax treatment as an IRA or employer retirement plan.

Depending on the investments and activity in the account, taxes may apply to interest, dividends, realized capital gains, and other taxable income.

Long-term capital gains and qualified dividends may also receive different federal tax treatment from ordinary income, depending on the taxpayer’s circumstances.

The important point isn’t that one bucket is universally better than another.

Different tax buckets can give you different options.

Why Can Having Different Tax Buckets Matter in Retirement?

Imagine a retiree needs an additional $30,000 for a major expense.

If virtually all available assets are held in a traditional IRA, obtaining the money may require taking a taxable distribution.

That distribution adds to taxable income and could potentially affect other parts of the retiree’s tax situation.

If the retiree has assets available across traditional, Roth, cash, and taxable accounts, there may be more ways to evaluate how to fund the expense.

That doesn’t mean the Roth account should automatically be used.

It means there are choices to consider.

This becomes increasingly important because retirement income doesn’t necessarily come from one place.

A retiree’s tax return might eventually include some combination of:

• Social Security;
• Pension income;
• IRA distributions;
• Required minimum distributions;
• Interest;
• Dividends;
• Capital gains;
• Business or rental income; and
• Other sources of taxable income.

The question isn’t necessarily, “Which retirement account is best?”

A better question may be, “Will I have choices about where my retirement income comes from?”

Can You Convert Too Much to a Roth IRA?

Yes, it’s possible for a Roth conversion to create a larger tax bill than anticipated.

A Roth conversion generally involves moving eligible money from a traditional tax-deferred retirement account into a Roth account.

The taxable portion of the conversion generally becomes income in the year of the conversion.

That means the size of the conversion matters.

Consider a simplified hypothetical example discussed in a September 2026 Wall Street Journal article.

Suppose John is currently in a 22% federal marginal income-tax bracket and believes he could also be in a 22% bracket when he eventually withdraws money from his retirement accounts.

He worries that tax rates could increase in the future, so he considers a large Roth conversion.

But suppose the conversion is large enough that part of the additional taxable income would be taxed at a 32% marginal rate.

Now John needs to ask an important question:

Does it make sense to voluntarily pay a 32% marginal rate on part of a conversion today if he expects that money might otherwise be withdrawn at a 22% marginal rate later?

Not necessarily.

This doesn’t mean Roth conversions are bad.

It means:

“Taxes might go up someday” isn’t enough information by itself to determine whether a Roth conversion makes sense.

Why Does the Timing of a Roth Conversion Matter?

Instead of asking only:

“Should I convert my IRA to a Roth?”

Consider asking:

“If a Roth conversion makes sense, when might it make sense?”

Your taxable income can change significantly from one year to another.

Someone still earning a high salary may face a very different tax situation from the same person several years later after retirement.

For example, someone might experience:

High-income working years

↓

Retirement

↓

Employment income stops

↓

Potential lower-income years

↓

Social Security, required minimum distributions, or other income later

That transition can sometimes create years when taxable income is lower than it was during the individual’s career or may be later in retirement.

Those years may be worth evaluating for tax-planning opportunities.

The best year for a Roth conversion may matter just as much as the decision to convert.

What Is the Retirement Tax Window?

The phrase “retirement tax window” can be used to describe a period after someone stops working but before certain other sources of taxable retirement income begin.

For example, someone may retire before beginning Social Security benefits and before required minimum distributions begin.

During that period, employment income may have disappeared while some future retirement income hasn’t started yet.

That can potentially create lower-taxable-income years.

Depending on the individual’s circumstances, those years may provide an opportunity to evaluate strategies involving:

• Roth conversions;
• Traditional IRA withdrawals;
• Realizing capital gains;
• Charitable giving;
• Portfolio rebalancing; and
• Other tax-planning decisions.

But a lower-income year isn’t an invitation to automatically fill every available tax bracket with a Roth conversion.

The entire tax picture still needs to be considered.

A tax bracket is an important part of the calculation. It isn’t necessarily the entire calculation.

Why Isn’t Your Tax Bracket the Only Thing to Consider Before a Roth Conversion?

It’s tempting to evaluate a Roth conversion by looking only at federal income-tax brackets.

For example:

“I have room left in this tax bracket, so let’s convert enough to fill it.”

That may be worth analyzing, but taxable income can interact with other parts of a retiree’s financial situation.

Depending on the individual’s circumstances, additional income may affect other tax provisions, deductions, credits, healthcare-related costs, or other financial considerations.

State taxes may also be relevant.

And there’s another practical question:

Where will the money to pay the conversion tax come from?

If taxes can be paid from assets outside the retirement account, the economics may look different than if money must be withheld from the retirement assets being converted.

Age and potential early-distribution rules may also need to be considered.

This is why a Roth conversion should generally be evaluated as part of the broader financial and tax picture rather than based solely on one tax bracket.

What Happens If the Market Drops After You Make a Roth Conversion?

Market risk adds another uncertainty to Roth conversion planning.

Suppose you convert a significant amount from a traditional IRA to a Roth IRA.

You generally recognize taxable income associated with the conversion based on the value converted.

Then the market declines significantly.

You may now have a Roth account worth less than the amount originally converted—but the tax associated with the conversion doesn’t simply disappear because the investment value declined afterward.

This is one of the trade-offs discussed in the Wall Street Journal source.

With assets remaining in a traditional IRA, a significant decline in account value could eventually mean fewer dollars subject to tax when distributed.

With a Roth conversion, the tax associated with converting the assets has already been triggered.

That doesn’t mean investors should attempt to predict short-term market movements before making a conversion.

It does mean market risk, conversion size, tax cost, time horizon, and the intended use of the Roth assets can all be relevant considerations.

A Roth conversion isn’t simply a bet on future tax rates. You’re also making a decision about when to pay the tax.

Should You Wait for a Market Drop to Make a Roth Conversion?

A lower account value can sometimes make a potential Roth conversion worth reviewing because the same number of shares may represent a smaller taxable conversion amount after a market decline.

But that doesn’t mean investors should wait indefinitely for a market downturn or make conversion decisions based solely on market timing.

Markets may rise instead of fall.

Tax circumstances can change.

And a conversion still needs to fit the individual’s broader retirement and tax strategy.

The better approach may be to identify the circumstances under which a conversion would be worth evaluating rather than attempting to predict exactly when markets will decline.

Questions to Ask Before Making a Roth Conversion

Before deciding how much—or whether—to convert, consider questions such as:

• What is my current marginal federal income-tax rate?
• How much of the conversion could be taxed at higher marginal rates?
• What might my taxable income look like later in retirement?
• When will required minimum distributions begin for me?
• When do I expect to claim Social Security?
• Do I expect my filing status to change in the future?
• Do I have money outside the IRA available to pay the conversion tax?
• How could additional taxable income interact with other parts of my financial situation?
• Do I expect to use these assets during my lifetime or potentially leave them to heirs?
• Would converting a smaller amount over multiple years be worth evaluating?
• What happens to the plan if tax laws change?

Most importantly:

What problem are you trying to solve with the Roth conversion?

If the only answer is:

“I’m afraid taxes might go up,”

there may be more analysis to do.

Retirement Tax Planning Is About Creating Choices

No one knows exactly what federal tax rates will be 10, 20, or 30 years from now.

We also can’t know exactly what your future income, spending, health, investment returns, or family circumstances will look like.

That uncertainty is real.

But it doesn’t mean you’re powerless to plan.

Building assets with different tax characteristics, evaluating Roth conversions during potentially advantageous years, coordinating retirement income sources, and revisiting the strategy as circumstances change may provide something valuable:

Options.

The objective isn’t necessarily to pay the least possible tax in one particular year.

It’s to consider the tax impact of financial decisions across retirement.

You don’t need to know exactly what future tax rates will be to start building a retirement tax strategy today.

Can You Do a Roth Conversion After RMDs Begin?

Yes, reaching required minimum distribution age doesn’t necessarily prevent you from making a Roth conversion.

But there is an important rule to understand:

Your required minimum distribution itself generally cannot be converted to a Roth IRA.

If you’re required to take an RMD for the year, that required amount generally must be distributed before additional eligible traditional IRA assets are converted.

For example, suppose someone is required to withdraw $30,000 from a traditional IRA for the year and also wants to convert additional IRA assets to a Roth IRA.

The $30,000 RMD generally can’t simply be included in the Roth conversion.

After satisfying the RMD requirement, the individual could evaluate whether converting additional eligible IRA assets makes sense.

That distinction can affect the tax calculation because the retiree may now have:

• Taxable income from the RMD; and
• Additional taxable income from the Roth conversion.

Waiting until RMDs begin doesn’t necessarily eliminate the possibility of Roth conversions, but it can change the tax environment in which those conversions occur.

Why Can RMDs Create Tax-Planning Challenges Later in Retirement?

Traditional retirement accounts can be valuable savings vehicles, but eventually many account owners must begin taking required minimum distributions.

RMDs aren’t inherently a problem.

The planning challenge is that they may reduce your control over how much money comes out of tax-deferred retirement accounts each year.

Imagine someone reaches retirement with substantial assets in traditional IRAs and 401(k)s.

They may not need all of the distributions for living expenses once RMDs begin.

But the tax rules can still require money to come out of the account.

Those taxable distributions may be layered on top of other retirement income, potentially including:

• Social Security;
• Pension income;
• Interest;
• Dividends;
• Capital gains;
• Business or rental income; and
• Other taxable income.

This is why retirement tax planning can be especially valuable before RMDs begin.

Earlier retirement years may provide opportunities to evaluate withdrawals or Roth conversions while the individual still has greater control over taxable retirement-account distributions.

That doesn’t mean the objective should automatically be to eliminate a traditional IRA before RMD age.

It means future RMDs should be part of today’s planning.

When Do Required Minimum Distributions Begin?

The age at which RMDs generally begin depends on your birth year under current federal law.

For many retirees, the applicable starting age is either 73 or 75.

Because RMD rules can change and special rules may apply to different types of retirement accounts and beneficiaries, it’s important to confirm the requirements that apply to your individual situation.

The larger planning point is that someone who retires several years before RMDs begin may have a period in which employment income has stopped but required distributions haven’t started.

Those years can be worth examining rather than simply waiting for RMDs to arrive.

What Is a Qualified Charitable Distribution?

For charitably inclined IRA owners, a Qualified Charitable Distribution, or QCD, may provide another way to coordinate charitable giving with retirement tax planning.

A QCD generally allows an eligible IRA owner to transfer money directly from an IRA to an eligible charitable organization, subject to applicable requirements.

According to the September 2026 Wall Street Journal article, IRA owners age 70½ or older can make QCDs of up to a total of $111,000 in 2026.

A qualifying distribution can count toward an individual’s RMD, if applicable.

Unlike taking a taxable IRA distribution and then making a charitable gift with the proceeds, a properly completed QCD generally isn’t included in adjusted gross income.

That distinction can be important because adjusted gross income can interact with other areas of a retiree’s tax situation.

If you’re already giving to charity, the planning question may not only be how much you give—but which account you give from.

The $111,000 figure cited here applies to 2026 and may change in future years. QCDs also have specific eligibility, account, charitable-organization, and procedural requirements, so individuals should verify current rules with an appropriate tax professional before acting.

Can You Make a QCD Before RMDs Begin?

Potentially, yes.

The age requirement for making a QCD isn’t necessarily the same as the age at which your RMDs begin.

Under the 2026 rules discussed in the source article, an eligible IRA owner can make a QCD beginning at age 70½.

Depending on birth year, RMDs may not begin until age 73 or 75.

That creates a period for some retirees when QCDs may be available even though RMDs haven’t started.

Once RMDs do apply, qualifying QCDs may count toward satisfying some or all of the RMD requirement, subject to applicable rules.

What Can Happen to Taxes After One Spouse Dies?

Retirement tax planning for married couples shouldn’t necessarily be based only on the years when both spouses are alive.

After one spouse dies, the surviving spouse’s tax situation can change substantially.

A married couple may have been filing a joint federal income-tax return.

After the applicable period following a spouse’s death, the survivor may eventually file as a single taxpayer.

At the same time, the surviving spouse may still have substantial taxable income from sources such as:

• Traditional IRA distributions;
• Required minimum distributions;
• Investment income;
• Pension income;
• Social Security; and
• Other assets inherited from the deceased spouse.

Household expenses may not fall proportionately either.

The combination of a different filing status and continued retirement income can potentially create a different tax environment for the surviving spouse.

This is sometimes referred to informally as the “widow’s penalty,” although the issue can apply to any surviving spouse.

Should You Do Roth Conversions to Reduce Taxes for a Surviving Spouse?

Maybe—but this is a good example of why Roth conversion decisions aren’t always straightforward.

The Wall Street Journal source notes disagreement among retirement specialists about how heavily the potential future tax burden on a surviving spouse should influence today’s Roth conversion decisions.

One view is that converting traditional IRA assets while a couple is still filing jointly may reduce future taxable distributions for the surviving spouse.

Another view is that the potential future filing-status change alone may not justify paying a high tax rate today to complete the conversion.

Both perspectives reinforce the same planning principle:

A potential future tax problem doesn’t automatically justify paying any amount of tax today to avoid it.

The decision may depend on factors including:

• The couple’s current marginal tax rate;
• The potential tax cost of the conversion;
• The size of traditional retirement accounts;
• Projected future RMDs;
• The ages of both spouses;
• Expected Social Security and pension income;
• Life expectancy assumptions;
• Other assets available to the surviving spouse; and
• Whether there are other reasons a Roth conversion is being considered.

This isn’t a question that necessarily has one universal answer.

Should You Convert an IRA to Roth Before Leaving It to Your Children?

Estate planning can add another dimension to Roth conversion decisions.

Many non-spouse beneficiaries who inherit retirement accounts are subject to rules that generally require the inherited account to be distributed within 10 years.

Depending on the circumstances, some beneficiaries of traditional retirement accounts may also have annual distribution requirements during that period.

That can matter if an adult child inherits a large traditional IRA during their own peak earning years.

Traditional IRA distributions could potentially add taxable income during a period when the beneficiary is already earning a substantial salary.

Inherited Roth accounts can have different income-tax characteristics. Qualified Roth distributions are generally tax-free, although inherited Roth accounts can still be subject to beneficiary distribution rules.

That can make Roth assets attractive from an inheritance-planning perspective.

But there is an important question:

Who should pay the tax—and at what rate?

If a parent completes a large Roth conversion at a high marginal tax rate today so that an adult child can avoid tax at a potentially lower rate later, the conversion may not necessarily improve the family’s overall tax outcome.

On the other hand, circumstances could look very different if the parent’s conversion rate is relatively low and the beneficiary is expected to be in a higher tax environment.

Leaving heirs a Roth account may simplify some future tax issues, but that doesn’t automatically mean converting the account today is the best decision.

How Could Long-Term-Care Expenses Affect Roth Conversion Planning?

This is one of the more easily overlooked considerations in Roth conversion planning.

Someone may look at a large traditional IRA and conclude:

“I should convert as much of this as possible so I don’t have taxable IRA withdrawals later.”

But future healthcare and long-term-care expenses can complicate that assumption.

The Wall Street Journal source notes that qualifying medical and long-term-care expenses may be deductible when applicable requirements are satisfied and expenses exceed the relevant adjusted-gross-income threshold.

Under the rules discussed in the 2026 source article, eligible medical expenses may be deductible to the extent they exceed 7.5% of adjusted gross income for taxpayers who itemize and otherwise qualify.

Substantial qualifying expenses could therefore create deductions during years when someone also needs significant amounts of money to pay for care.

If the individual still has traditional IRA assets, taxable withdrawals may be available to help fund those expenses during years when significant medical deductions are also available.

If the individual previously converted nearly all of those assets to Roth and paid conversion taxes in earlier years, that planning flexibility may look different.

This doesn’t mean someone should maintain a large traditional IRA solely because they might eventually need long-term care.

It means future healthcare expenses are another factor that may deserve consideration before aggressively converting tax-deferred retirement assets.

Tax planning isn’t only about what you expect your tax bracket to be. It’s also about what else may be happening on your tax return when the income occurs.

Is Roth Always Better Than a Traditional IRA?

No.

Roth accounts can offer valuable tax characteristics, but that doesn’t make them universally superior to traditional retirement accounts.

A traditional contribution or account may be attractive when someone receives a tax benefit at a relatively high marginal rate and later withdraws the money at a lower rate.

A Roth contribution or conversion may be attractive when taxes are paid at a relatively low rate and qualified distributions avoid potentially higher taxes later.

But actual outcomes depend on much more than those simplified examples.

That’s why the decision shouldn’t be reduced to:

Traditional = taxes.

Roth = no taxes.

The more useful question is:

When do you want to pay the tax, what rate might apply, and what flexibility does each choice provide?

What Should You Review Each Year in Retirement?

Retirement tax planning isn’t necessarily a decision you make once at retirement and never revisit.

Each year can present a different set of circumstances.

An annual review might consider:

• Current taxable income;
• Current federal and state marginal tax rates;
• Expected income for the remainder of the year;
• Traditional IRA and 401(k) balances;
• Roth account balances;
• Taxable investment accounts;
• Required minimum distributions;
• Potential Roth conversions;
• Capital gains or losses;
• Charitable giving and potential QCDs;
• Social Security timing;
• Medicare and healthcare-related considerations;
• Large planned withdrawals or purchases;
• Changes in marital or family circumstances;
• Estate and beneficiary planning; and
• Changes in federal or state tax law.

The objective isn’t necessarily to execute a tax strategy every year.

Sometimes the best decision may be to do nothing.

The important thing is recognizing when circumstances have changed enough that a decision is worth evaluating.

Frequently Asked Questions About Taxes in Retirement

Will My Tax Rate Be Lower After I Retire?

Not necessarily. Employment income may decline after retirement, but taxable income can eventually come from Social Security, pensions, traditional retirement-account withdrawals, RMDs, investments, and other sources. Your filing status and future tax laws can also affect your tax rate.

Should I Convert My Traditional IRA to a Roth Before I Retire?

A Roth conversion may be worth evaluating, but the appropriate timing and amount depend on your current and expected future tax circumstances. A large conversion can increase taxable income substantially in the conversion year, so the decision should generally be evaluated within the broader retirement and tax plan.

Can I Convert My Entire IRA to a Roth at Once?

Eligible traditional IRA assets can potentially be converted, but converting a large balance in a single year may create significant taxable income. Rather than assuming an all-at-once conversion is appropriate, it may be useful to compare different conversion amounts and timing strategies.

Can I Convert My RMD to a Roth IRA?

Generally, no. An amount required to be distributed as an RMD isn’t eligible for Roth conversion. If you’re subject to an RMD, the required distribution generally must be satisfied before additional eligible retirement assets are converted.

At What Age Can I Make a Qualified Charitable Distribution?

Under the 2026 rules discussed in the Wall Street Journal source, eligible IRA owners may make Qualified Charitable Distributions beginning at age 70½. The annual QCD limit cited for 2026 is $111,000. Because limits and rules can change, confirm current requirements before making a distribution.

Should I Do Roth Conversions Before RMDs Begin?

The years between retirement and the beginning of RMDs may provide a lower-income planning window for some retirees. Roth conversions during those years may be worth evaluating, but lower income alone doesn’t automatically make a conversion beneficial. The tax cost and broader financial circumstances should be considered.

Should I Convert My IRA to Roth for My Children?

Potential inheritance taxes and distribution rules can be part of a Roth conversion analysis, but leaving a Roth account to heirs doesn’t automatically justify paying conversion taxes today. The owner’s current tax cost, the beneficiary’s potential future tax situation, estate goals, and other circumstances can all be relevant.

Do Long-Term-Care Expenses Affect Roth Conversion Decisions?

Potentially. Significant qualifying medical or long-term-care expenses may interact with available medical-expense deductions. This can affect the tax treatment of income used to fund care, so anticipated healthcare needs may be another consideration when evaluating how much traditional IRA money to convert.

You Don’t Need to Know Future Tax Rates to Make a Tax Plan

Retirement tax planning would be much easier if we knew exactly what tax laws would look like decades from now.

We don’t.

We also don’t know exactly how long you’ll work, what markets will do, how much you’ll spend, what your healthcare needs will be, or what your household circumstances will look like years from now.

Trying to make one perfect tax decision today based on all of those unknowns may be unrealistic.

A more practical approach is to build flexibility and revisit the decisions as circumstances evolve.

That may mean having assets with different tax characteristics.

It may mean evaluating Roth conversions during lower-income years rather than automatically converting as much as possible.

It may mean coordinating charitable giving with IRA distributions.

It may mean considering the tax situation of a surviving spouse or future heirs.

And sometimes it may mean intentionally keeping money in a traditional retirement account rather than assuming every dollar should eventually be converted to Roth.

The goal isn’t to guess future tax rates perfectly. The goal is to give yourself choices when the future arrives.

Is Your Retirement Tax Strategy Giving You Options?

If most of your retirement savings are concentrated in traditional IRAs and 401(k)s, it may be worth understanding what your future retirement income and required distributions could look like.

If you’re considering Roth conversions, the question isn’t simply whether you should convert.

It may also be:

How much? In which years? At what potential tax cost? And what are you trying to accomplish?

At Nova Wealth Management, we help individuals and families consider how investments, retirement income, taxes, Social Security, charitable giving, and estate-planning goals interact within the broader financial plan.

We do not believe retirement tax planning requires predicting the future perfectly.

It requires understanding the choices available to you and evaluating them as your circumstances change.

If you’d like to discuss how taxes may fit into your retirement plan, Schedule a Meeting with our team.

Toll-Free: (888) 677-9910

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This article was developed using concepts discussed in the September 4, 2026 Wall Street Journal article by Laura Saunders regarding retirement tax planning, traditional and Roth retirement accounts, Roth conversions, required minimum distributions, Qualified Charitable Distributions, inherited retirement accounts, surviving spouses, and long-term-care considerations. Nova Wealth Management has expanded upon the topic for educational purposes.

Disclosure: Nova Wealth Management, Inc. is a Registered Investment Advisor. This material is provided for general educational and informational purposes only and is not intended as personalized investment, tax, accounting, or legal advice. Tax laws and retirement-account rules are complex and subject to change. The tax consequences of any strategy depend on an individual’s specific circumstances. Examples are hypothetical and for illustrative purposes only. Roth conversions may result in taxable income and may not be appropriate for every investor. Qualified distributions from Roth accounts are subject to applicable requirements. Individuals should consult with appropriate tax and legal professionals regarding their individual circumstances before implementing tax, estate-planning, charitable-giving, or retirement-account strategies.