Married in Their Mid-60s - Just Retired

Dan & Carolyn

‘Dan and Carolyn’ never really made a lot of income during their careers, but had good jobs and saved aggressively. They came to us short after retiring, seeking some guidance about when to start Social Security and how to organize their retirement income plans. They were kind of clueless as to the large tax bills that were going to hit them later. As you can see, had they stopped short of their ‘optimal’ plan, they’d have saved taxes, but they would have left a huge amount of money at the doorstep of the tax man. One of their objectives was to make sure they didn’t leave their three sons holding the bag owing a ton of tax from inheriting the taxable IRAs.

The Savings

No Conversion Current Tax Bracket Optimal Strategy
Projected RMDs $2,835,698 $1,306,369 $ 38,181
Projected Medicare Premiums $ 367,301 $ 324,176 $ 232,360
Tax Avoidance None $ 459,029 $1,784,828

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