Use Tax Timing to Keep More of Your Retirement Income
It’s not just how much you withdraw that matters—it’s when and from where. Thoughtful tax timing can help you smooth out taxes, avoid surprises, and keep more of what you’ve saved.
Download the Tax Timing Guide (PDF)
Why Taxes Belong in Your Income Plan
Once you know your spending and income sources, the next step is understanding how taxes interact with those choices. Different accounts are taxed in different ways, and the order and timing of withdrawals can either create a smooth tax path—or a series of unpleasant surprises.
Thoughtful tax timing can help you:
- Avoid jumping into a higher tax bracket unnecessarily
- Reduce the impact of large required minimum distributions later on
- Manage exposure to Medicare’s IRMAA surcharges
- Coordinate withdrawals with the rest of your income plan
The goal isn’t to chase perfection. It’s to make steady, informed choices that work in your favor over time.
Three Levers That Shape Your Tax Picture
- Which accounts you use each year - How you mix taxable, tax-deferred, and tax-free withdrawals.
- Your total income in each tax year - Keeping an eye on key bracket thresholds and Medicare IRMAA levels.
- When you shift money between account types - Using intentional moves—like strategic Roth conversions or realizing capital gains in low-income years.
When these levers work together, your taxes become more predictable and less disruptive.
A Simple Way to Think About Taxes Over Time
Phase 1 – Early Retirement
Often lower-income years between work and full RMDs. This can be a window for:
- Filling up lower tax brackets
- Considering Roth conversions
- Managing capital gains more flexibly
Phase 2 – RMD & Social Security Years
RMDs and Social Security set a “floor” for your taxable income. Here, the focus shifts to:
- Smoothing income so taxes don’t spike
- Coordinating withdrawals with required distributions
- Watching IRMAA thresholds and other cliffs
Phase 3 – Later Retirement
The emphasis moves toward stability and simplicity:
- Keeping taxes predictable year to year
- Matching income sources to healthcare and long-term needs
- Simplifying account structure where possible
Take the Next Step With a One-Page Tax Timing Snapshot
The Tax Timing Guide turns these ideas into a simple, visual reference. You’ll see the key levers, the three phases, and a short worksheet to sketch out your own tax timing over the next several years.