Taxes & retirement
The tax side of retirement, in plain English.
I’m an insurance agent today and an accounting student on the CPA track. This is where I explain how retirement income gets taxed, and how it connects to what Medicare costs you. Educational, not tax advice.
Free consultation. No obligation to enroll.
- Plain English, with sources
- How taxes connect to Medicare costs
- No products pitched on these pages
- Free to read. No email wall.
The retirement timeline
The birthdays that change the rules.
Retirement isn’t one date. It’s a string of ages where the tax and benefit rules shift. Scroll through them. The one at 63 surprises almost everybody.
- 50
Catch-up contributions start
You can put extra money into IRAs and workplace plans each year, on top of the normal limit.
- 55
The rule of 55
Leave your job in or after the year you turn 55, and you can usually take money from that employer’s 401(k) without the 10% early penalty. It doesn’t apply to IRAs.
- 59½
The early withdrawal penalty ends
The 10% penalty on IRA and 401(k) withdrawals generally goes away. Income tax still applies to traditional accounts.
- 62
Earliest Social Security
You can start benefits, but they’re permanently smaller than if you wait.
When to take Social Security - 63
Medicare starts watching your income
Your Medicare premiums at 65 are based on your tax return from two years earlier. A big Roth conversion or sale at 63 can raise them.
How income affects Medicare - 65
Medicare
Your seven-month window to sign up opens three months before the month you turn 65.
Turning 65 guide - 67
Full retirement age
For anyone born in 1960 or later. Benefits aren’t reduced for age, and the earnings limit no longer applies.
- 70
Social Security stops growing
Waiting past full retirement age adds delayed credits until 70, then they stop. At 70½, you can also give to charity straight from an IRA.
- 73+
Required minimum distributions
RMDs from traditional IRAs and 401(k)s start at 73 if you were born 1951 through 1959, or 75 if you were born in 1960 or later.
RMDs, explained
Explainers
Start with the question you have.
- Explainer · 3 min readDo I have to pay taxes on my Social Security?Maybe some of it. Here's the test the IRS uses, the numbers that matter, and what North Carolina does.
- Explainer · 3 min readWhat are required minimum distributions, and when do they start?The IRS let your retirement savings grow without tax for years. RMDs are when it starts asking for its share.
- Explainer · 3 min readWhat is a Roth conversion, and who looks at one?Pay tax now so you don't pay it later. Sometimes that's smart, sometimes it isn't. Here's how it works.
Tools
Run your own numbers.
- Roth conversion windowHow many lower-income years you might have before RMDs start.
- Conversion and Medicare timingLine up conversions with the years Medicare looks at your income.
- Part B and IRMAA estimateSee what your income could mean for your Medicare premiums.
What I can and can’t do here
I can explain how these rules work, and how your income choices connect to your Medicare premiums and coverage. I’m not a CPA yet, and I don’t prepare tax returns or give investment advice. When your question needs that, I’ll say so, and I can introduce you to the advisor I work with.
Not sure where your situation fits?
Tell me what you’re weighing. I’ll explain what I can, and point you to the right person for the rest.
Free consultation in person or by phone. Calls and appointments 9am to 5pm, Monday through Saturday, Eastern time.