Set the draw-down order
Decide which accounts to pull from first (taxable, tax-deferred, or tax-free) so each dollar is taxed as little as possible.
Fullerton 360 · Tax Planning
Retirement Tax Planning
Protect more. Keep more. Plan ahead so taxes are part of your income plan, not a surprise.
Most people don't realize how much tax they'll owe in retirement until it's too late to adjust. Taxes should be part of your income plan, not a birthday surprise.
The tax bill most people never see coming
RMDs, Social Security, and Medicare all add up, and the IRS is patient.
- 73
the age RMDs begin — fully taxable withdrawals you must take whether you need them or not
- 85%
the share of your Social Security benefits that can be subject to federal income tax
- 56%
of beneficiary families expected to owe tax on their Social Security through 2050
- Married filing jointly
a couple over 65 gets the larger standard deduction, until the Widow's Tax
- Filing single
a surviving spouse's standard deduction roughly halves, while the income often stays the same
What we're actually solving for
The goal isn't zero tax. It's the lowest tax you'll pay over your lifetime.
Eliminating tax isn't realistic. Reducing your tax liability across retirement is. The tax code rewards people who plan ahead, not the ones who wait and see.
- We help you keep more of what you earned — by lowering the total tax you pay over a 20–30 year retirement, not just this year.
- Plan ahead, don't react — the moves that save the most have to be made before the bill arrives.
- Coordinate every income source — RMDs, Social Security, and withdrawals interact — and so do their taxes.
Powerful — but easy to get wrong
A Roth conversion can save you for decades, or cost you in April.
Done right, you pay tax on lower balances now and let the rest grow tax-free. Done wrong (too much, too fast, at the wrong time), it creates a big bill and undoes the benefit.
- Convert at the right pace — filling lower brackets without spilling into higher ones.
- Mind the Medicare thresholds — a conversion that raises your income can quietly raise your premiums.
- Time it to your life — the years before RMDs begin are often the best window to act.
More than one trap
Retirement is full of tax traps you can't see from the outside.
Each of these is manageable on its own. Left uncoordinated, they compound, and the cost shows up years later, when it's hardest to fix:
01
Required Minimum Distributions — at 73 you must start drawing down retirement accounts: fully taxable, and large enough to push you into a higher bracket.
02
Social Security taxation — up to 85% of your benefits can be taxed, and the income thresholds are lower than most people expect.
03
Medicare premium surcharges — cross an income line and your premiums climb, often as a side effect of an otherwise smart move.
04
Mistimed Roth conversions — converting too much, too fast, or in the wrong year turns a good strategy into a big tax bill.
05
The Widow's Tax Penalty — when one spouse passes, the survivor files single. The deduction roughly halves while the income stays the same.
How we build your tax plan
Five moves that help reduce the tax you'll pay over a lifetime.
It doesn't start with this year's return. It starts with the order you draw your money down. Then we plan the taxes around it.
Evaluate Roth conversions
Model whether converting makes sense, how much, and in which years, weighed against Medicare and bracket thresholds.
Sequence your withdrawals
Coordinate withdrawals to reduce tax drag and avoid pushing yourself into a higher bracket without meaning to.
Coordinate every account
401(k), IRA, Roth, and brokerage work together, not as separate buckets each making its own tax mistake.
Plan for the Widow's Tax & future brackets
Build in what happens 5, 10, and 20 years out, including the surviving spouse's higher rate on lower income.
FAQ
Still Wondering If This Is Right for You?
Here are some of the questions we hear most often, with straight answers to help you move forward confidently.
How do I make sure I have enough to retire?
It comes down to two things: what you need, and how your income is structured. We build your Retirement Income Plan around your lifestyle, your assets, and your goals, then help you create steady income that supports it.
How do I make sure I don’t run out of money later in retirement?
We design your income plan to cover today and 20–30 years from now. That includes guaranteed income for stability, and a long-term strategy for growth that doesn’t rely on timing the market. We help you avoid the common missteps that drain retirement accounts too soon.
What’s the best way to retire and not have to give up my lifestyle or be afraid of my budget?
It starts with knowing how much your desired lifestyle costs and ends with creating more than enough income to maintain it. We help you define your spending levels, identify guaranteed income sources, and map out a tax-smart withdrawal strategy that lets you live the life you’ve worked for, not tiptoe around it.
Why do I need more guaranteed income than just Social Security?
Social Security rarely covers everything, and it's not built to. If you want freedom and flexibility in retirement, additional income sources (especially guaranteed ones) help you maintain your lifestyle without leaning too hard on market-risk assets. We help you identify the right way for you to fill the gap.
How do I protect myself from future market downturns or crashes?
The key is not being forced to sell investments during a downturn. We create a plan that separates protected income from growth assets, so your lifestyle isn’t dictated by what the market did this month. We help you stay calm, not reactive.
When is the right time to retire?
There’s no perfect age or market condition, and waiting for the “right moment” often leads to missed opportunities. The right time to retire is when you have a plan that works no matter what the economy is doing, one that protects your income, reduces your tax exposure, and supports your lifestyle with confidence. We help you build that plan, so retirement becomes a decision based on your goals, not guesswork.
How do I avoid being forced to go back to work or worse?
By creating a plan that isn’t built on hope or guesswork. We help you build reliable income, minimize tax surprises, and protect yourself from risks like sequence of returns and rising costs, so work stays optional.
How can annuities fit into my income plan?
Some annuities are designed to create high, guaranteed income, which can be a great fit when there’s an income gap. We only use them when they add clear value, and only the types that offer flexibility, control, and competitive payouts. We help you understand when they’re appropriate, and when they’re not.
My current financial advisor still has me in risky investments. It feels wrong to me now that I’m older, but am I just worrying too much?
You’re not. What worked when you were growing your money isn’t always what protects it during retirement. Our work focuses on transitioning portfolios to support income, stability, and risk reduction, not just growth for growth’s sake. We help you make the shift, without starting over.
I plan to retire in the next 10 years. Is it too early to begin planning?
Not at all. In fact, this is the ideal time. Planning early gives you more options, more flexibility, and better long-term outcomes. We help you make smarter decisions today that pay off later.
I want to retire sooner than 10 years… Am I too late to plan?
The sooner you start planning, the better. But even if retirement is around the corner (or already started) you can still make wise choices to protect your future. It’s worth a conversation to see how your current income plan will hold up to the test of time.
How do I make sure my spouse is taken care of if I pass first?
We build spousal continuity into every plan. That includes income continuation, beneficiary planning, and making sure your spouse has clarity, not confusion, during a difficult time. We help you protect what matters most.
What changes to my investment strategy should I expect when transitioning to retirement?
Most portfolios need to be adjusted, but not overhauled. We’ll help you rebalance for risk, reposition assets for tax efficiency, and integrate income strategies that reduce reliance on market performance. We help you make your money work for retirement, not just growth.
What does the Retirement Review cost?
It’s 100% complimentary. No pressure, no sales tactics. Just a helpful, honest conversation to help you see where you stand, and how we may be able to help you move forward.
Ready to stop paying more tax than you have to?
Start with a free, no-obligation retirement review. We'll help you see where your plan may be leaking to taxes, and how to keep more.
Get Your Free Tax Planning Reviewor call us at 623-974-0300