The leaves are turning, the holidays are coming — and December 31 is closer than it looks. For a lot of retirees, that date quietly decides how much tax you’ll owe for the entire year. Smart year-end tax planning for retirees isn’t about loopholes. It’s about timing.
Most of the best moves have a hard deadline. Once the calendar flips, they’re gone. So let’s walk through what’s worth a look this fall — while you still have time to act calmly instead of in a rush.
Why Year-End Tax Planning for Retirees Looks Different
When you were working, taxes mostly took care of themselves. A paycheck came in, withholding went out, and April sorted out the rest.
Retirement flips that. Now you decide where your income comes from — an IRA, a pension, Social Security, a brokerage account, an annuity. Every one of those sources is taxed a little differently. And the choices you make in one year can ripple into the next two — including what you pay for Medicare.
That’s the good news, too. More choices mean more control. You just have to use it before the year ends.
Year-End Tax Planning for Retirees: 7 Moves to Review Before December 31
1. Take Your Required Minimum Distribution (RMD)
If you’re 73 or older, the IRS generally requires you to withdraw a minimum amount from traditional IRAs and most workplace plans each year. The deadline is December 31.
There’s one wrinkle for first-timers. Your very first RMD can wait until April 1 of the year after you turn 73 — but then you’ll take two RMDs in the same tax year. That can bump you into a higher bracket. Sometimes it’s smarter to take the first one now.
Miss an RMD and the excise tax is 25% of the shortfall, reduced to 10% if you correct it in time. The IRS RMD FAQ page lays out the rules in detail.
2. Give Through a Qualified Charitable Distribution (QCD)
If you give to charity and you’re 70½ or older, a QCD may be the most tax-efficient way to do it. You send money directly from your IRA to a qualified charity. It counts toward your RMD — but it isn’t added to your taxable income.
For 2026, the QCD limit is $111,000 per person. The key word is directly. If the check is written to you first, it doesn’t count. And gifts to donor-advised funds don’t qualify.
3. Consider a Partial Roth Conversion
A Roth conversion moves money from a traditional IRA to a Roth IRA. You pay tax on the converted amount now, and qualified withdrawals later are tax-free. Roth IRAs also have no RMDs for the original owner.
Conversions must be completed by December 31 to count for this year. Many retirees “fill up” a lower tax bracket rather than converting everything at once. It’s also worth looking at how a conversion fits with your guaranteed retirement income plan — the two decisions work best together.
4. Make the Most of the New Senior Deduction
Through 2028, taxpayers 65 and older can claim an extra deduction of up to $6,000 per person — $12,000 for a married couple if both spouses qualify. It sits on top of the regular standard deduction and the existing age-65 add-on.
Here’s the catch: it phases out once modified adjusted gross income passes $75,000 (single) or $150,000 (married filing jointly). A large Roth conversion or capital gain late in the year could shrink it. Run the numbers before you pull the trigger.
5. Watch Your Medicare Premiums (IRMAA)
Medicare Part B and Part D premiums are based on your income from two years earlier. So a big income year in 2026 can raise your premiums in 2028. If you’re already reviewing coverage, our Medicare Open Enrollment checklist is a good companion to this list.
6. Clean Up Your Taxable Accounts
If you have a brokerage account, look for losses you could harvest to offset gains — or gains you might realize in a low-income year. Check mutual fund distribution estimates, too. Those year-end payouts can create a surprise tax bill.
7. Review Beneficiaries and Estate Documents
It’s not a tax move on paper, but it’s one of the most important. Beneficiary designations on IRAs and annuities override your will. Who inherits a traditional IRA versus a Roth makes a real tax difference to your heirs. Year-end is a natural time to make sure your estate planning documents still match your wishes.
Your Year-End Checklist
- Confirm your 2026 RMD amount for each account — and when it will be paid.
- Decide whether charitable gifts should come from your IRA as a QCD.
- Ask whether a partial Roth conversion makes sense this year.
- Estimate your 2026 income to see where you land on the senior deduction phase-out.
- Keep IRMAA in mind before adding a large one-time income event.
- Review gains, losses, and fund distribution estimates in taxable accounts.
- Check every beneficiary designation — IRAs, 401(k)s, annuities, and life insurance.
- If you live in Colorado, ask how state retirement income subtractions affect your plan.
Common Year-End Tax Mistakes Retirees Make
- Waiting until the last week of December. Custodians get busy. Conversions and QCDs can take time to process — start in October or November.
- Taking the RMD first, then giving. Once your RMD is already out, a later QCD can’t undo the taxable income from it.
- Converting too much at once. A big Roth conversion can push you into a higher bracket, raise Medicare premiums, and reduce the senior deduction — all at the same time.
- Forgetting inherited IRAs. Inherited accounts often have their own distribution rules and deadlines.
- Treating taxes in isolation. Your tax plan should line up with your income plan, your long-term care planning, and your legacy goals.
Year-End Tax Planning for Retirees FAQs
Can I take my RMD and do a QCD at the same time?
Yes. A QCD can satisfy part or all of your RMD. Just make sure the QCD happens before — or as part of — your RMD for the year, and that it goes directly to the charity.
Is it too late to do a Roth conversion in the fall?
No. A conversion counts for the year it’s completed, so you have until December 31. Starting earlier simply gives you time to review the tax impact first.
Do I have to itemize to get the $6,000 senior deduction?
No. It’s available whether you take the standard deduction or itemize, as long as you’re 65 or older and meet the income limits.
The Bottom Line
Year-end tax planning for retirees comes down to a few well-timed decisions — and most of them expire on December 31. A little attention this fall can mean less tax, steadier Medicare premiums, and more left for the people and causes you care about.
You don’t have to sort it out alone. Foundational Wealth Partners helps pre-retirees and retirees across Colorado line up income, taxes, and legacy plans so every piece supports the others. Schedule a conversation with our team today.
This content is for educational purposes only and does not constitute personalized financial, tax, legal, or insurance advice. Foundational Wealth Partners does not provide tax or legal advice; please consult a qualified tax professional or attorney about your situation. Tax figures and rules are based on information published as of October 2026 and may change. Roth conversions are taxable events and may affect Medicare premiums and eligibility for other deductions. Annuity guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.
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