5 Retirement Tax Mistakes That Could Cost You Thousands
Most retirees overpay the IRS by tens — even hundreds — of thousands of dollars over the course of retirement. Here are the five mistakes we see most often, and how to avoid them.
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Taxes are likely the single largest expense of your retirement.
Yet most retirement plans focus only on returns and ignore the silent killer: tax inefficiency. The mistakes below are completely avoidable with proactive planning — but only if you act before RMDs, IRMAA, and the SECURE Act start working against you.
What's quietly costing retirees the most.
Ignoring RMDs Until It's Too Late
Required Minimum Distributions can push you into a higher tax bracket overnight. Miss one and the IRS penalty is up to 25% of the amount you should have withdrawn. Proactive planning years before age 73 is where real tax savings begin.
Triggering IRMAA Surcharges
A single large withdrawal — a Roth conversion, RMD, or even the sale of a home — can spike your Medicare premiums by thousands per year for both spouses. Most retirees never see it coming until the letter arrives.
Claiming Social Security at the Wrong Time
Up to 85% of your Social Security benefit can become taxable depending on your other income. Poor timing and uncoordinated withdrawals can cost a couple six figures over retirement.
Skipping Roth Conversions in Low-Tax Years
The window between retirement and RMDs is often the lowest-tax period of your life. Failing to convert pre-tax dollars during this window leaves a tax time bomb for you — and for your heirs under the SECURE Act's 10-year rule.
The Widow's Tax Penalty
When one spouse passes, the survivor is pushed into single filer brackets — often paying significantly more tax on the same income. Without a strategy in place, the surviving spouse can lose tens of thousands in unnecessary taxes.
Every one of these mistakes is avoidable.
In a complimentary 30-minute Tax & RMD Review, we'll walk through your specific situation and identify the most impactful strategies designed to help reduce unnecessary taxes in retirement.
- Custom RMD & withdrawal sequencing analysis
- Roth conversion window evaluation
- Social Security taxation review
- IRMAA bracket planning
- Survivor & legacy tax strategy
"Most of the retirees we meet are paying far more in taxes than they need to — not because they did anything wrong, but because no one ever showed them the strategies that exist. That's what this review is for."
Reserve Your 30-Minute ReviewThe best time to plan was 10 years ago.
The second-best time is right now.
Book your complimentary Tax & RMD Review with Gerard today. Walk away with clarity — even if we're not the right fit.
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