By Brent Matthew
This may surprise you, but retirement planning doesn’t end once you’re retired. During your working life, you probably saved money and created a map of your financial future. But staying abreast of effective retirement tax strategies is a key part of shielding your finances after the steady paycheck.
Here are a few retirement tax strategies the Scottsdale Wealth Advisory team is using today to help clients keep more of what they’ve worked so hard to build. Below, we’ll walk through three approaches we often recommend and the situations where each one can make the biggest difference.
1. Strategic Roth Conversions for Retirees
When it comes to tax planning for retirees, required minimum distributions (RMDs) are a critical consideration. RMDs generally start at age 73. Now that the passage of the One Big Beautiful Bill Act (OBBBA) has locked in tax rates for the next several years, our clients who have yet to start RMDs can build Roth conversion strategies to save themselves taxes in the future.
Here’s how the strategy usually works:
- Our clients convert 401(k) and traditional IRA dollars to Roth when in lower tax brackets.
- They make systematic conversions each year to fill up lower tax brackets without moving to higher ones.
This is one of the most effective retirement tax strategies for those who have retired but are not yet 73. In this time frame, they usually have the lowest income (and therefore the greatest Roth conversion opportunity).
2. IRMAA Planning to Reduce Medicare Costs
Many of our clients have an understanding of Social Security optimization and why it matters for retirement. However, when it comes to retirement tax strategies, IRMAA planning is often overlooked.
The income-related monthly adjustment amount (IRMAA) is a surcharge on Medicare premiums for those making more than a certain amount. There are several different IRMAA brackets, and each creates a “tax cliff.” In some cases, an extra $1 in income can translate to an extra $2,000 in premiums.
Notably, these surcharges are based on your income from two years prior. So for 2026, your IRMAA charges depend on your income from 2024. To reduce your risk of owing more in 2027, you must take action to manage your 2025 income now. Qualified charitable distributions (QCDs) and strategic capital loss harvesting are two retirement tax strategies that may save you money when 2027 rolls around.
3. Optimizing 2025 Tax Returns Before Filing
The year 2025 might be over, but it’s not too late to optimize your tax return before filing. Now is a great time to tweak your tax return for a number of reasons:
- Tax season is in full swing, and most people haven’t even filed yet.
- There’s still time to make last-minute tax moves.
- You have until April 15, 2025, to make IRA contributions.
- Examining your return early lets you catch errors before you file.
Maxing out your IRA contributions is one way you can optimize. You can also review your tax return for these common mistakes:
- Failing to deduct charitable contributions
- Not deducting medical expenses that exceed 7.5% of your AGI
- Not properly reporting qualified charitable distributions (QCDs)
Remember one of the most basic (and most important) retirement tax strategies: verifying RMD compliance. Failing to take required distributions can lead to major tax penalties.
Need Help With Retirement Tax Strategies?
Whether you’re newly retired or have been out of the workforce for years, navigating retirement tax strategies can be difficult. Fortunately, you don’t have to plan your taxes alone. At Scottsdale Wealth Advisory, we’re here to help all of our clients boost retirement tax savings and shield their hard-earned assets.
If you have questions about how we may be able to help you with retirement tax strategies, contact us online today. To schedule your complimentary financial coaching session, call (480) 247-9090, email info@SWAFirm.com, or book directly at calendly.com/BrentMatthew.
Frequently Asked Questions About How to Save on Taxes
How can I reduce my taxes in retirement using Roth conversions?
You can reduce taxes in retirement by converting traditional IRA or 401(k) funds into a Roth IRA during lower-income years, often before required minimum distributions (RMDs) begin at age 73. This lets you pay taxes at a lower rate now and enjoy tax-free withdrawals later. Timing and tax bracket awareness are key for this strategy to be effective. Consult with a fiduciary financial advisor such as Scottsdale Wealth Advisory in Scottsdale, AZ, for the most effective way to implement Roth conversions.
What is IRMAA, and how can I avoid paying extra Medicare premiums?
IRMAA stands for Income-Related Monthly Adjustment Amount; a surcharge added to Medicare premiums for higher-income retirees. Even $1 over an IRMAA threshold can lead to thousands in extra premiums. Planning strategies like qualified charitable distributions (QCDs) or tax-loss harvesting can help you manage your income and avoid crossing into a higher IRMAA bracket.
Are there any last-minute tax strategies I can use before filing my return?
Yes, even after the year ends, you can still use retirement tax strategies before filing. These include making IRA contributions before April 15, reviewing your return for missed deductions (like charitable gifts or medical expenses), and confirming RMD compliance to avoid penalties. A proactive review in early tax season can prevent costly mistakes.
About Brent
Brent Matthew is the founder and CEO of Scottsdale Wealth Advisory, a full-service fiduciary retirement planning firm serving pre-retirees and retirees across Arizona and multiple states. With a strong commitment to always putting clients first, Brent leads the firm in developing comprehensive, tax-efficient financial plans tailored to each family’s unique goals. He is responsible for researching investment, annuity, and life insurance strategies and building smart asset allocations that reflect both long-term growth and risk management.
Brent is driven by a core belief: “The success of this firm will be measured by the success of the families it represents.” That client-first approach has guided his work since the beginning. He is currently enrolled at the College for Financial Planning and is on track to earn his CERTIFIED FINANCIAL PLANNER® designation. He also holds his Series 65 license and Arizona Life and Health Insurance Producers License.
Outside the office, Brent embraces the Arizona outdoors with “lil B” and their two pomskies, Heimo and Kota. Whether he’s hiking, fishing, dirt biking, skiing, golfing, kayaking, or skeet shooting, Brent finds balance and joy in staying active. He’s also a fan of CrossFit, brunching, and cruising the Phoenix canal system on his beach cruiser—usually with classic tunes from the Marshall Tucker Band, Gordon Lightfoot, or Crosby, Stills & Nash playing in the background. To learn more about Brent, connect with him on LinkedIn.
Advisory services are offered by Scottsdale Wealth Advisory, LLC, an Investment Advisor in the State of Arizona. Insurance products and services are offered through Scottsdale Wealth Advisory, LLC. Scottsdale Wealth Advisory, LLC is not affiliated with or endorsed by the Social Security Administration or any government agency, and is not engaged in the practice of law. Be sure to consult with a licensed financial professional to confirm the accuracy of the insurance product you are considering.
