---

Retirees and people approaching retirement have only a few months left to make certain tax-planning decisions for 2026, prompting advisers to encourage a broader review of how retirement income will be taxed.

Aaron Gaines, a certified financial planner and founder of Atlanta-based Gaines Capital Management, identified five areas retirees may want to examine before Dec. 31. 

One potential strategy is a Roth conversion, in which money is moved from a tax-deferred retirement account into a Roth account. The converted amount is generally treated as taxable income in the year of the transaction, but qualified withdrawals from the Roth account can later be tax-free.

For some retirees, relatively low-income years before required minimum distributions begin can provide an opportunity to make partial conversions. The amount and timing require care, however, because a conversion can increase taxable income and potentially affect other costs or taxes tied to income.

---

Required minimum distributions

Retirees should also prepare for required minimum distributions, or RMDs. Under current federal rules, withdrawals generally begin at age 73 for owners of traditional IRAs and many workplace retirement accounts, although the precise deadline can depend on the type of account and employment status. The Internal Revenue Service (IRS) says most subsequent annual RMDs must be taken by Dec. 31.

Planning before those withdrawals become mandatory may give retirees more control over when taxable income is recognized. Waiting until RMDs begin could leave less flexibility, particularly for people with substantial balances in tax-deferred accounts.

A temporary federal tax deduction may provide another planning opportunity. From 2025 through 2028, qualifying taxpayers age 65 or older can claim an additional deduction of as much as $6,000 per person. An eligible married couple filing jointly could receive up to $12,000.

The deduction begins to phase out when modified adjusted gross income exceeds $75,000 for single filers or $150,000 for joint filers, according to IRS guidance. It is available to qualifying taxpayers whether they take the standard deduction or itemize.

Gaines also recommends evaluating retirement income as a whole. Social Security benefits, pensions, IRA distributions, investment income, and Roth conversions can interact under federal tax rules. A decision involving one source may therefore change the tax treatment or financial impact of another.

---

The importance of timing

The final consideration is timing. Some strategies intended to affect a taxpayer’s 2026 position must be completed by Dec. 31 and cannot be implemented retroactively when a return is prepared in 2027.

“Tax preparation tells you what already happened,” Gaines said in the release. “Tax planning asks what we can still do before it happens.”

The appropriate approach will vary by household, and actions such as Roth conversions can create immediate tax liabilities. Retirees should consider consulting qualified tax and financial professionals before making changes based on their income, accounts, and long-term plans.