Hi Jan,
This week we continue answering follow up questions from the recent tax planning webinar, both in the article and on the podcast. Several themes emerged repeatedly. Average tax rates can be misleading. Roth conversion decisions are rarely simple. And small income changes can create larger ripple effects through Social Security taxation, IRMAA, and capital gains rules.
The article and podcast episode work together to unpack these ideas and focus on what actually drives long term tax efficiency in retirement.
| | | | Why Your Average Tax Rate Doesn’t Tell the Real Story in Retirement Many retirees look at their average tax rate as a quick measure of how much they pay in taxes each year. It feels like a tidy summary. The problem is that this number is useful for reviewing the past but surprisingly poor for guiding your next decision. Your average tax rate is mostly a rearview-mirror statistic. It tells you what already happened, but does not tell you what your next decision will cost.
By Retirement Researcher | | | | The OBBBA’s Impact on Tax Planning The One Big Beautiful Bill Act (OBBBA) legislation, passed by Congress in mid-2025, introduced many changes that impact how you consider taxes within the context of your overall financial plan. Ultimately, while many of the individual provisions under OBBBA are relatively minor changes from existing law, together they represent a substantial shift in tax policy – one that adds a significant amount of complexity to tax planning with the number of new deductions, phaseout rules, and effective dates governing OBBBA's provisions.
By McLean Asset Management
| | | | YouTube: Tax Planning for Retirement in 2026 Replay Taxes play a major role in how much of your retirement savings you actually get to spend. In this session, you’ll learn how tax maps can help you make smarter decisions about Roth conversions and long-term capital gains harvesting, especially in light of new tax legislation enacted in July 2025. This will guide your understanding of the content in Chapter 10 of the Retirement Planning Guidebook.
| | | | The Retirement Tax Mistake That Costs Thousands
In this episode of Retire With Style, Wade Pfau and Alex Murguia continue responding to listener questions from the recent tax planning webinar. They cover effective marginal rate targets, Roth conversion timing, IRMAA implications, capital gains harvesting, QLACs, reverse mortgages, and practical considerations around monitoring income throughout the year. The discussion reinforces how retirement tax strategy is built one coordinated decision at a time rather than through isolated rules of thumb..
| | | | | | | | |
