2026 Retirement Tax Planning Guide: 8 Questions Every Retiree Should Ask
Whether you’re approaching retirement or already enjoying it, smart tax planning isn’t just about meeting deadlines — it’s about making your money last longer and work harder for you and the people you love. That’s especially true in 2026, as retirement rules evolve and lifetime tax outcomes shift.
To help you take control of your retirement taxes now — before the IRS makes decisions for you — we’ve distilled the top questions every retiree or near-retiree should be asking this year. These aren’t just technical checkboxes — they’re strategic prompts that uncover hidden tax risks and reveal opportunities to keep more of your hard-earned retirement savings.
If you would like to read this information as a condensed sheet, click the checklist here: 2026-Retirement-Tax-Checklist
1. Are You Positioned for Higher Taxes in the Future?
Taxes in retirement are about timing as much as rates.
- Do you know how much of your retirement savings will be taxable later?
- Have you looked at how tax brackets and future tax rate changes could affect your lifetime outcomes?
If most of your assets are in traditional tax-deferred accounts, you could be facing a large tax bill down the road — especially if tax rates rise or your required withdrawals push you into higher brackets.
👉 Tip: Evaluate whether shifting a portion of savings into tax-free buckets (like Roth accounts) makes sense for your long-term picture.
2. Are You Using the Years Before Required Minimum Distributions (RMDs)?
Required Minimum Distributions (RMDs) are no longer just a future concern — they can squeeze your tax flexibility if not planned for.
- How many years before your first RMD?
- Are you taking advantage of those years to reduce future taxable income?
Because RMDs are mandatory once they begin, you can’t un-take them later. Planning before they start gives you more control over your tax bracket and withdrawal timing.
3. Will Your Retirement Accounts Create Tax Problems for Heirs?
Estate and beneficiary rules can dramatically impact how much of your legacy passes tax-efficiently.
- Do your heirs understand the 10-year rule for inherited retirement accounts?
- Are any accounts left to trusts that might not work as planned under current rules?
Today’s payout rules can compress distributions into shorter timeframes — meaning beneficiaries could face larger tax bills than you intended.
4. Are You Evaluating Roth Conversions at the Right Time?
One of the most effective ways to reduce future tax exposure is through strategic Roth conversions.
- Have you evaluated whether converting part of your retirement savings to Roth status makes sense now?
- How could conversions affect your future RMDs or taxes for heirs?
Paying tax today, at a rate that may be lower than future rates, can give you more tax-free flexibility down the road.
5. Are You Giving to Charity Tax-Efficiently?
If charitable giving is part of your financial plan — good for your heart and your tax return — make sure you’re doing it wisely.
- Are you using the most tax-advantaged assets for gifts?
- Could charitable gifts reduce future required distributions and overall lifetime taxes?
Smart charitable gifting strategies can shrink your tax bill and boost your giving impact.
6. Do 2026 Tax Rule Changes Affect Your Strategy?
This year brings rule changes that could change how your retirement planning plays out.
- Will changes to retirement contribution rules affect how your future contributions are taxed?
- Are you assuming prior tax treatment will continue?
For example, 2026 contribution limits and eligibility rules have shifted for IRAs and employer plans — and making outdated assumptions could cost you.
👉 Quick snapshot: The IRS recently boosted 401(k) and IRA contribution limits for 2026 — like a $7,500 IRA contribution limit and $24,500 401(k) cap — offering more potential shelter for retirement savings.
7. If You Own a Business, Are Your Tax Plans Aligned?
Business owners often juggle retirement and business tax strategies — but they don’t always talk to each other.
- Could retirement tax decisions affect your business deductions or credits?
- Has new legislation like the One Big Beautiful Bill Act (OBBBA) changed how these strategies interact?
Coordinated planning between business and personal retirement tax strategies can prevent costly overlaps or missed opportunities.
8. Are You Prepared for the “Widow’s Penalty”?
Losing a spouse is emotionally hard and — without planning — tax hard too.
- Do you understand how your taxes might change after a spouse’s passing?
- Could planning now reduce future tax pressure on the surviving spouse?
Because filing statuses and tax brackets shift, proactive strategies for surviving spouses can make a huge difference down the road.
The Big Takeaway
Tax planning in retirement isn’t just about rules — it’s about timing, coordination, and strategy. If any of these questions left you uncertain, it may be time to review your situation with a retirement tax-trained advisor who can help you:
✅ Reduce lifetime taxes
✅ Protect your legacy for your heirs
✅ Preserve more of your hard-earned savings
You’ve worked hard for your retirement — coordinated tax planning can help ensure you keep more of it and live the life you CRAve.
Best Regards,
California Retirement Advisors
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Christian Cordoba, founder of California Retirement Advisors, has been a member of Ed Slott's Master Elite IRA Advisor Group since 2007. Click the title of the group or logo below to learn what that could mean for your retirement plan.