Kyle Hammerschmidt
Tax-Efficient Retirement Planning: Why Retirees Overpay the IRS and How to Avoid It
Tax-Efficient Retirement Planning: Why Retirees Overpay the IRS and How to Avoid It
You’ve spent decades building your retirement nest egg. But as retirement approaches, one of the biggest threats to your savings often flies under the...
You’ve spent decades building your retirement nest egg. But as retirement approaches, one of the biggest threats to your savings often flies under the radar:
Taxes.
At MAKON Wealth, we frequently see retirees unknowingly overpaying the IRS, often by hundreds of thousands of dollars over the course of their retirement.
Let’s fix that.
Taxes: Your Largest Expense in Retirement?
Most retirement strategies are built to defer taxes, not reduce them. This “deal with it later” mindset might work during your working years, but in retirement, it can backfire.
For over 30 years, you were likely told to:
Max out your 401(k)
Avoid touching retirement accounts
Defer income to lower your current tax bill
Assume you’ll retire in a lower tax bracket
The result? Many retirees have 90% or more of their savings in pre-tax IRAs and 401(k)s, and are sitting on a huge future tax liability.
The Big Red Flag in Retirement Planning
If your current advisor only talks about investment diversification and not tax diversification, that’s a major red flag.
Smart retirement planning must include:
Year-by-year tax projections
Roth conversion strategies
Coordinated withdrawal planning with Social Security and Medicare
Working with an advisor who doesn’t review your tax return is like seeing a doctor who ignores your lab results.
When to Start: Your Critical Tax Window
The best time to start tax planning is the 15-year window that spans:
Five years before retirement
Ten years after retirement begins
During this time, you can implement powerful tax strategies before Required Minimum Distributions (RMDs) kick in or Medicare surcharges hit.
What you need isn't just a diversified portfolio. You need a diversified tax strategy:
A thoughtful withdrawal plan
Tactics to smooth out future tax brackets
Strategies to minimize RMDs
Approaches to avoid Medicare premium surcharges
Control over how much tax you pay and when you pay it
Three Truths About Retirement Tax Planning
Taxes should be central, not an afterthought
Earlier planning means better outcomes
You don’t need to be a tax expert. You just need a plan
Final Thought: Keep More of What You’ve Earned
After decades of saving, you deserve to enjoy what you’ve built—not hand more of it over to the IRS.
With a proactive tax strategy, you can:
Reduce your lifetime tax bill
Increase your retirement income
Leave more for your family or favorite causes
It’s not about how much you’ve saved. It’s about how much you get to keep and spend.
Ready for a tax-smart retirement plan?
Let’s talk about how MAKON Wealth can help you keep more of what’s yours.
Disclaimer:
You should always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This video is intended for educational purposes only. Nothing in this video constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns. Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost. MOKAN Wealth Management is a registered investment adviser with the SEC. Registration of an investment adviser does not imply a certain level of skill or training.
You’ve spent decades building your retirement nest egg. But as retirement approaches, one of the biggest threats to your savings often flies under the radar:
Taxes.
At MAKON Wealth, we frequently see retirees unknowingly overpaying the IRS, often by hundreds of thousands of dollars over the course of their retirement.
Let’s fix that.
Taxes: Your Largest Expense in Retirement?
Most retirement strategies are built to defer taxes, not reduce them. This “deal with it later” mindset might work during your working years, but in retirement, it can backfire.
For over 30 years, you were likely told to:
Max out your 401(k)
Avoid touching retirement accounts
Defer income to lower your current tax bill
Assume you’ll retire in a lower tax bracket
The result? Many retirees have 90% or more of their savings in pre-tax IRAs and 401(k)s, and are sitting on a huge future tax liability.
The Big Red Flag in Retirement Planning
If your current advisor only talks about investment diversification and not tax diversification, that’s a major red flag.
Smart retirement planning must include:
Year-by-year tax projections
Roth conversion strategies
Coordinated withdrawal planning with Social Security and Medicare
Working with an advisor who doesn’t review your tax return is like seeing a doctor who ignores your lab results.
When to Start: Your Critical Tax Window
The best time to start tax planning is the 15-year window that spans:
Five years before retirement
Ten years after retirement begins
During this time, you can implement powerful tax strategies before Required Minimum Distributions (RMDs) kick in or Medicare surcharges hit.
What you need isn't just a diversified portfolio. You need a diversified tax strategy:
A thoughtful withdrawal plan
Tactics to smooth out future tax brackets
Strategies to minimize RMDs
Approaches to avoid Medicare premium surcharges
Control over how much tax you pay and when you pay it
Three Truths About Retirement Tax Planning
Taxes should be central, not an afterthought
Earlier planning means better outcomes
You don’t need to be a tax expert. You just need a plan
Final Thought: Keep More of What You’ve Earned
After decades of saving, you deserve to enjoy what you’ve built—not hand more of it over to the IRS.
With a proactive tax strategy, you can:
Reduce your lifetime tax bill
Increase your retirement income
Leave more for your family or favorite causes
It’s not about how much you’ve saved. It’s about how much you get to keep and spend.
Ready for a tax-smart retirement plan?
Let’s talk about how MAKON Wealth can help you keep more of what’s yours.
Disclaimer:
You should always consult a financial, tax, or legal professional familiar with your unique circumstances before making any financial decisions. This video is intended for educational purposes only. Nothing in this video constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns. Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost. MOKAN Wealth Management is a registered investment adviser with the SEC. Registration of an investment adviser does not imply a certain level of skill or training.