Why Your 60s May Be Your Most Important Decade for Tax Planning
Your 60s can be one of the most important transition periods in your financial life.
You may be approaching retirement—or already retired. Your income may be changing. You may be deciding when to claim Social Security, evaluating Medicare, managing retirement accounts, or thinking more seriously about the legacy you want to leave behind.
And while retirement planning often focuses on how much you have saved, another question deserves just as much attention:
How much of your retirement savings will you actually get to keep?
Taxes can play a significant role in determining how much income is available to you throughout retirement. That’s why your 60s may present an important opportunity to evaluate your tax strategy before required distributions and other income sources become larger factors.
The following material is provided for informational and educational purposes only and should not be construed as individualized investment, tax, legal, or financial advice. Any examples used are hypothetical and for illustrative purposes only.
The Years Before RMDs Can Create Planning Opportunities
For many retirees, one of the biggest changes on the horizon is the beginning of required minimum distributions (RMDs).
Under current federal rules, owners of traditional IRAs and many retirement plans generally must begin taking RMDs at age 73. The rules are more nuanced for different types of accounts and birth years, and the applicable age is scheduled to increase to 75 for individuals who attain age 74 after 2032.
RMDs are generally included in taxable income, except for amounts that are otherwise excluded from income under the applicable rules.
That means the years before RMDs begin can be worth examining carefully.
Depending on your circumstances, there may be opportunities to help evaluate the amount and timing of withdrawals, consider whether a Roth conversion is appropriate, manage taxable income from different sources, and coordinate your overall retirement-income strategy.
There is no one-size-fits-all answer. But waiting until RMDs arrive may mean having fewer options than you had earlier.
Roth Conversions: One Strategy Worth Evaluating
A Roth conversion generally involves moving money from a traditional IRA or other eligible retirement account into a Roth account and paying applicable income taxes on the taxable amount converted.
Why might someone consider this?
Traditional retirement accounts can help create taxable income when money is withdrawn. Roth accounts may offer different tax characteristics, including tax-free qualified distributions. Roth IRAs also aren’t subject to lifetime RMDs for the original owner under current rules.
For some retirees, converting a portion of traditional retirement assets during lower-income years may be worth considering.
But a Roth conversion isn’t automatically beneficial. Converting too much in a single year could push taxable income into a higher marginal tax bracket or affect other income-related costs.
The question isn’t simply:
“Should I convert to a Roth?”
A better question may be:
“Would a Roth conversion fit into my broader retirement and tax strategy?”
That distinction matters.
Your Tax Bracket Isn’t the Only Consideration
Tax planning in retirement can involve more than looking at your federal income-tax bracket.
For example, taxable income can interact with the taxation of Social Security benefits. The IRS notes that whether Social Security benefits are taxable depends in part on your benefits and other income.
Medicare premiums can also be affected by income. Medicare uses modified adjusted gross income from your tax return from two years earlier when determining whether you owe an Income-Related Monthly Adjustment Amount (IRMAA). For 2026, for example, Medicare says IRMAA can apply when 2024 modified adjusted gross income exceeds certain thresholds.
This is one reason a retirement tax strategy shouldn’t focus exclusively on the tax bill from one particular year.
A decision that looks attractive today could have implications for future years.
Tax Planning Isn’t Just About Paying Less Today
One misconception about retirement tax planning is that the goal is simply to minimize this year’s tax bill.
Sometimes, paying taxes today could potentially be part of a strategy designed to manage taxes over a longer retirement horizon.
For example, someone might evaluate whether recognizing additional taxable income in a particular year could make sense in light of:
- Future RMDs
- Expected retirement income
- Social Security
- Potential Roth conversions
- Charitable giving
- Estate and legacy objectives
- The tax implications for a surviving spouse
- Future changes in personal circumstances
The right strategy depends on the individual.
The goal isn’t necessarily to pay the least amount of tax this year. It’s to make thoughtful decisions about your tax exposure over the course of retirement.
Your 60s May Be a Time to Coordinate the Pieces
Retirement decisions rarely exist in isolation.
- When should you claim Social Security?
- How much should you withdraw from your retirement accounts?
- Should you consider a Roth conversion?
- How much should you keep in taxable versus tax-deferred versus Roth accounts?
- When will RMDs begin?
- How might your income affect Medicare premiums?
- What happens to your tax situation if one spouse passes away?
These questions can become interconnected.
For example, taking a large distribution from a retirement account could increase taxable income. That additional income could potentially affect the taxation of Social Security benefits or Medicare premiums depending on the circumstances and applicable thresholds.
That’s why looking at each decision individually may not provide the full picture.
The 2026 Tax Landscape Makes Planning Worth Reviewing
Tax rules can change, and the rules that apply today may not be the same rules that apply throughout a 20- or 30-year retirement.
For 2026, the federal income-tax brackets range from 10% to 37%, with inflation-adjusted thresholds for each filing status. The standard deduction for 2026 is $32,200 for married couples filing jointly and $16,100 for single filers and married individuals filing separately.
Those numbers are useful—but they’re only one piece of the planning conversation.
Your income, account types, filing status, charitable goals, Social Security benefits, investment strategy, and other circumstances all matter.
That is why tax planning should be viewed as an ongoing process rather than a once-a-year exercise.
How Agemy Financial Strategies Can Help
Your 60s can bring important financial decisions—and those decisions often overlap.
At Agemy Financial Strategies, we believe retirement planning should look beyond a single account, tax year, or market environment. A comprehensive retirement strategy can help you evaluate how different pieces of your financial life may work together, including retirement income, investment accounts, Social Security, RMDs, tax considerations, and long-term goals.
Our approach is centered on planning, not predicting. No one can know exactly how markets, tax laws, inflation, or interest rates will change. But thoughtful planning can help you evaluate different scenarios and make informed decisions based on your circumstances and objectives.
If you’re approaching retirement or already retired, your 60s may be an important time to take a closer look at your tax and retirement strategy.
Ready to start the conversation?
Visit agemy.com to learn more about Agemy Financial Strategies and connect with our team.
Frequently Asked Questions
- Why is tax planning important in your 60s?
Your 60s can be a period of significant financial transition. You may be moving from earned income to retirement income, beginning Social Security, preparing for Medicare, or considering how and when to withdraw from retirement accounts. Planning ahead may help provide more flexibility to evaluate tax-efficient strategies before required minimum distributions begin. - When do required minimum distributions (RMDs) begin?
Under current federal rules, RMDs generally begin when you reach age 73 for traditional IRAs and many employer-sponsored retirement plans. The specific rules can vary depending on the type of account, your birth year, and other circumstances. - Should I consider a Roth conversion in my 60s?
A Roth conversion may be worth evaluating for some individuals, particularly during years when taxable income is lower than it may be later in retirement. However, a conversion generally creates taxable income and may have other tax consequences. Whether it makes sense depends on your broader financial and tax situation. - Can retirement income affect my taxes and Medicare costs?
Yes. Different sources of retirement income can affect your taxable income, and higher income can also affect certain Medicare costs. That’s one reason retirement tax planning should consider more than simply the tax rate you expect to pay on your withdrawals. - Is it too late to do tax planning after I retire?
Not necessarily. Tax planning can remain an important part of retirement throughout your 60s and beyond. Even after retirement, decisions involving withdrawals, Roth conversions, charitable giving, Social Security, RMDs, and the timing of income may warrant consideration. The earlier you evaluate your options, however, the more opportunities you may have to plan proactively rather than react to a tax bill later.
This material is provided for informational and educational purposes only and should not be construed as individualized investment, tax, or legal advice. Tax laws and regulations are subject to change. Roth conversions and other tax strategies may not be appropriate for everyone and may have tax and other financial consequences. Individuals should consult with their qualified tax and legal professionals regarding their specific circumstances.
