Using Tax Gain Harvesting to Pay $0 in Taxes
One of the most overlooked strategies in retirement is tax gain harvesting. If you’re in the 0% long-term capital gains bracket $48,350 for singles and $96,700 for married couples in 2025 you can sell appreciated investments and pay zero federal tax. Take Joe Sample, a single retiree. He pulled $15,000 from his IRA, which was offset entirely by the standard deduction. Then he sold $60,000 in stocks from his brokerage account. Because his cost basis was $250,000 and his account was worth $1 million, $15,000 was a return of capital and $45,000 was a taxable gain still under the 0% capital gains threshold. Total tax owed? $0. That’s what smart timing and a little math can do.

Avoiding the Social Security Tax Torpedo
This one sneaks up on retirees. It’s called the Social Security tax torpedo, and it happens when other income like IRA withdrawals increases your provisional income and triggers taxes on your benefits. For example, let’s say you and your spouse receive $50,000 from Social Security and take out $40,000 from your IRA. Your provisional income hits $65,000, and suddenly, $23,850 of your Social Security becomes taxable. That bumps your effective tax rate to over 22%, even though you thought you were in the 12% bracket. It’s not just about how much you withdraw it’s about how all your income sources interact.

Getting Roth Conversions Just Right
Roth conversions are one of the most powerful tools for reducing future tax burdens—but only when done correctly. Consider John and Sally. They have $2.5 million in an IRA, and if they don’t act, their required minimum distributions (RMDs) will push them into higher brackets later. By converting a portion of their IRA now, while staying within the 12% tax bracket, they avoid a larger tax hit in the future. But there’s a catch. If you over-convert like in another scenario where a couple converted too much of a $250,000 IRA at once they faced a six-figure loss in after-tax wealth. The trick is to convert enough to reduce future RMDs, but not so much that you spike your current tax bill.

Why These Strategies Matter
In retirement, tax planning becomes more important not less. It’s not just about how much you’ve saved, but how much you get to keep. Understanding how capital gains, Social Security benefits, and IRA distributions all play together can mean the difference between a comfortable retirement and one filled with surprises. A personalized tax map based on your income, assets, and goals can help you take advantage of the 0% capital gains bracket, minimize the impact of the tax torpedo, and convert your Roth IRA with confidence.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post The Retirement Tax Moves That Could Save You Thousands appeared first on ROI TV.

Tax Optimization in Retirement

Your retirement tax rate isn’t fixed—you can control it through smart planning. Strategic withdrawals from pre-tax accounts, Roth accounts, and brokerage accounts can help you stay within favorable tax brackets and even qualify for 0% long-term capital gains rates. For example, married couples filing jointly in 2025 can have taxable income up to $96,700 and still qualify for a 0% federal tax rate on long-term capital gains and qualified dividends.

Brokerage Accounts and the 0% Capital Gains Zone

Standard brokerage accounts may not offer tax-deductible contributions, but they provide unique tax planning opportunities in retirement. If your taxable income is below the $96,700 threshold, you can realize up to $26,700 in long-term capital gains tax-free. With proper timing and income management, reinvesting these gains also resets your cost basis, helping reduce future tax liability.

401(k)s and Roth 401(k)s: Know Your Brackets

Choosing between a traditional and Roth 401(k) hinges on your current and expected future tax brackets. Roth contributions are taxed now but grow and withdraw tax-free later. Traditional contributions are pre-tax but taxable upon withdrawal. Also, employer matches are almost always pre-tax. For retirees who give charitably, Qualified Charitable Distributions (QCDs) from traditional IRAs after age 70½ can reduce taxable income and satisfy Required Minimum Distributions (RMDs).

HSAs: A Triple Tax Advantage

Health Savings Accounts (HSAs) are an underrated tool in retirement. They offer a triple tax benefit: tax-deductible contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. After age 65, you can also use HSA funds for non-medical expenses without penalty (though income taxes apply, similar to a traditional IRA). For retirees facing rising healthcare costs, HSAs offer unmatched flexibility and tax efficiency.

Inheritances and Strategic Withdrawals

Inherited non-retirement assets receive a step-up in basis, erasing capital gains accrued during the decedent’s life. However, inherited IRAs and 401(k)s must be fully withdrawn within 10 years under current law. Spreading withdrawals over the full period and coordinating with your tax situation can prevent large spikes in taxable income and protect more of your inheritance.

Social Security: Timing is Everything

Up to 85% of your Social Security benefits may be taxable depending on your provisional income, which includes half your benefits plus all other taxable income and some non-taxable interest. With careful planning, you can time Social Security collection and manage withdrawals from other accounts to minimize the taxable portion. In most states, Social Security benefits are not taxed at all.

A Holistic Approach to Retirement Tax Planning

The best results come from coordinating your withdrawal strategy across all account types—traditional, Roth, HSA, brokerage, and inherited accounts—while staying mindful of Social Security taxation and charitable goals. Retirement isn’t just about having enough; it’s about using what you have wisely to maximize income, reduce taxes, and ensure long-term financial security.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post How to Pay $0 in Taxes in Retirement appeared first on ROI TV.

So how do you plan for a successful retirement without over- or under-shooting? Here’s a breakdown of how to find your number, manage the tradeoffs, and build a plan that lets you live comfortably—now and later.

1. Save Enough, But Not Too Much

The goal of saving for retirement is to ensure future security, but once you’ve reached a point of stability, saving more than you need can actually cost you valuable time and experiences.

Under-saving may lead to financial hardship in your 70s, 80s, or 90s. Over-saving may keep you working longer than necessary, with extra funds that don’t meaningfully improve your retirement lifestyle.

The sweet spot is somewhere in between—enough to fund the retirement you want, not so much that you delay living your life today.

2. Use This Simple Formula to Find Your Retirement Target

Let’s say you want to spend $6,000 a month in retirement and expect $2,000 per month from Social Security. That leaves a $4,000 monthly gap, or $48,000 annually, that needs to come from your savings.

Adjusting for 10 years of inflation (at 3%), that becomes about $64,500 per year.

Using the 4% withdrawal rule, you’d need a retirement portfolio of: $64,500 ÷ 0.04 = $1.612 million

That’s your target to generate sustainable income over a 30-year retirement.

3. Growth Assumptions and the Savings Gap

Now let’s say you already have $750,000 saved and you’re expecting a 6% annual growth rate. Over 10 years, your portfolio might grow to $1.3 million—a solid amount, but still $270,000 short of your goal.

Depending on your time frame and assumptions, this gap may be manageable. For example:

• Starting with $500,000? You might need to save $4,500/month.
• Starting with $1.2 million? You might not need to save anything more.

4. Don’t Forget Taxes

The type of accounts you withdraw from in retirement matters—a lot.

Let’s look at Tina, who needs $84,000/year after taxes. If her money is in a traditional IRA, she might need to withdraw $117,000/year to net that amount—thanks to income taxes.

That’s a 7.3% withdrawal rate, which would deplete her portfolio by age 82.

But if the funds were in a Roth IRA, those withdrawals would be tax-free. Tina’s portfolio could last until age 90, just by avoiding taxes. This is why tax efficiency is a critical part of retirement planning.

5. Plan for Uneven Spending in Retirement

Retirement isn’t a straight line. Most people spend more early on—traveling, renovating homes, or helping with grandchildren—then slow down later.

Tina, for instance, spends $10,000/month in her first five years of retirement, including $3,000 on travel. After that, her spending drops to $7,000/month. This change alone improves her financial outlook dramatically.

Being realistic about your spending phases can make your retirement plan more accurate and sustainable.

6. The Retirement Spending Smile

This concept, supported by retirement research, shows that retirees often decrease spending over time. Instead of increasing expenses with inflation every year, you might reduce spending naturally during the “slow-go” and “no-go” years.

Adjusting Tina’s spending growth from 3% to just 2% annually improved her success probability from 63% to 84%.

Lesson? You don’t always need to plan for increasing costs. Sometimes, less is more.

7. Life Expectancy Matters More Than You Think

Life expectancy assumptions dramatically affect how much you need to save.

If Tina plans for a 100-year life, her success rate drops. If she only expects to live to 80, her odds jump to 99%. That’s a wide range, and while no one can predict the future, it’s important to plan for longevity—especially with improved healthcare and longer average lifespans.

8. Work Longer—or Adjust Spending

If Tina continues working until age 68 or 69 and continues saving, her chances of success rise significantly. But interestingly, adjusting her spending in the early years of retirement can offer a similar boost—without the extra years of work.

This is where a detailed, personalized retirement plan makes all the difference. The right choices—like reducing early travel or adjusting inflation assumptions—can help you retire sooner without giving up your lifestyle.

The Bottom Line

Retirement planning isn’t just about hitting a number. It’s about building a plan that supports both your future security and your present happiness.

Start with a realistic estimate of how much you’ll need. Factor in inflation, taxes, and life expectancy. And most importantly—design your retirement around your life, not just your finances.

A smart retirement plan allows you to enjoy your time, stay healthy, and leave worry behind—exactly what this next chapter of life should be about.

You should always consult a financial, tax, or legal professional familiar about your unique circumstances before making any financial decisions. This material is intended for educational purposes only. Nothing in this material constitutes a solicitation for the sale or purchase of any securities. Any mentioned rates of return are historical or hypothetical in nature and are not a guarantee of future returns.

Past performance does not guarantee future performance. Future returns may be lower or higher. Investments involve risk. Investment values will fluctuate with market conditions, and security positions, when sold, may be worth less or more than their original cost.

The post How to Plan for Retirement Without Sacrificing the Life You Want Today appeared first on ROI TV.