Retirement Tax Planning Advisor in Seattle

Fiduciary | Fee Only | Certified and Experienced

Taxes don't stop when you retire, and for many people, they become even more complicated. The mix of Social Security, pensions, investment withdrawals, and Medicare premiums can create a tangled web of liabilities. That last thing you need is to over-pay on taxes.

At Retirement Planning Partner, we help Seattle-area clients build retirement tax strategies that are proactive and designed to support long-term financial well-being. Our goal is to help guide you through the decisions that shape what you'll owe in the years ahead.

For a complimentary consultation, get in touch. While we are based in the Seattle area, we also work with clients throughout the United States.

Why Retirement Changes the Tax Equation

During your working years, income and taxes tend to follow a predictable pattern. You earn a salary, your withholdings are automatic, and your tax bracket stays relatively stable. But in retirement, you now have control over when and how you draw income, and each choice comes with potential tax consequences.

Let's say you retire at 64 and decide to delay Social Security until age 70. During those six years, your income might be unusually low, especially if you're not drawing from a traditional retirement account. That creates an opportunity. By carefully taking withdrawals from a traditional IRA or converting funds to a Roth IRA during that window, you may stay within the 12% or 22% federal tax bracket and avoid pushing future income into higher brackets. These early distributions can also reduce the balance of your IRA before required minimum distributions (RMDs) begin, which may help minimize taxes later on. On the other hand, if you withdraw too much without considering the tax impact, you could push yourself into a higher bracket or trigger higher Medicare premiums or Social Security taxation.

Now imagine you reach age 73 and are required to start taking RMDs from your traditional IRA. These distributions are taxed as ordinary income and can't be deferred. They can push your total income high enough to make 85% of your Social Security benefits taxable and increase your Medicare premiums under the IRMAA rules. This is why tax planning in retirement matters. With the right strategy, you can optimize your tax situation and retain more control over your financial future.

Common Retirement Tax Planning Opportunities

Roth Conversions

One of the most effective strategies in early retirement is converting pre-tax retirement funds into a Roth IRA. If your taxable income is low, you may be able to convert $20,000 to $50,000 or more in a single year without jumping into a significantly higher tax bracket. For example, someone living mostly off cash savings at age 65 might convert $30,000 to a Roth IRA and still remain in the 12% or 22% bracket. That money then grows tax-free, with no future RMDs. When withdrawn later, it doesn't impact your Modified Adjusted Gross Income (MAGI), which means it won't increase your Medicare premiums or raise your overall tax rate that could make your Social Security benefits taxable.

This strategy can also benefit your heirs, who may receive the Roth IRA as a tax-free inheritance, subject to distribution rules but without ordinary income tax due upon withdrawal.

Managing RMDs

Under current IRS rules, most retirees must begin RMDs at age 73. These required withdrawals are taxed as ordinary income. If you're not using the funds for spending, they can feel like an unnecessary tax hit. If your pre-tax account is large, RMDs can be substantial. For instance, someone with $800,000 in a traditional IRA might face a required withdrawal of over $30,000 in the first year alone.

Chris helps you think ahead by reducing IRA balances through qualified withdrawals or Roth conversions in earlier years. We can also discuss reinvestment options, charitable giving strategies, or offsetting tax increases through tax loss harvesting in brokerage accounts.

Social Security and Tax Bracket Management

Social Security benefits may be partly taxable depending on your other income. The IRS uses a calculation called "combined income," which includes half of your Social Security benefit, plus other taxable and nontaxable sources. If your combined income exceeds $34,000 as a single filer, or $44,000 for a married couple filing jointly, up to 85% of your Social Security benefit becomes taxable.

We help model your income sources to find the most efficient withdrawal mix. This may include pulling funds from Roth accounts or spending down cash in certain years to keep your overall taxable income below key thresholds. Even small changes in how and when you take money out of your accounts can result in thousands saved over time.

Qualified Charitable Distributions (QCDs)

For clients who are charitably inclined, QCDs can be a powerful tax planning tool. Starting at age 70½, you can donate directly from your IRA to a qualified charity, up to $108,000 annually (as of 2025). These donations count toward your RMD but don't increase your taxable income. That's especially helpful if you don't itemize deductions or want to reduce your adjusted gross income to limit the taxability of Social Security or avoid Medicare surcharges.

Tax Planning, Not Just Tax Filing

Most tax software and preparers focus only on the year behind you, but Chris works to look ahead and help you reduce taxes across the full span of your retirement. The goal is to smooth out your taxable income over time and avoid surprises that could disrupt your cash flow or impact your long-term goals. She doesn't prepare tax returns, but she collaborates with your accountant to align your income and investment strategies with IRS rules.

A Fee-Only Advisor Who Works for You

Chris Maggio is a fiduciary and operates on a fee-only basis. That means she is paid only by her clients, not by investment companies or insurance firms. Her recommendations are based entirely on what makes the most sense for your situation, without the pressure of sales incentives. You'll get a clear explanation of what she's suggesting and why it fits into your broader retirement plan.

Connect the Dots in Your Retirement Plan

Tax planning is just one part of your retirement picture. Chris also works with clients on income strategy, investment allocation, healthcare budgeting, and estate planning coordination. These areas are deeply connected. A small change in your withdrawal order can affect your Medicare premiums. Choosing a different account for a large purchase might shift your tax bracket. Chris helps bring all of those pieces together, so your financial life feels less scattered and more manageable.

If you live in Seattle, Bellevue, Redmond, Woodinville, Kirkland, or anywhere in the Puget Sound region, we're here to help you get ahead of the tax questions that come with retirement.