Top Ways to Cut Taxes in Retirement

Top Ways to Cut Taxes in Retirement

Top Ways to Cut Taxes in Retirement

When you think of retirement you tend to think of pleasant things. Perhaps you dream about living out your days on a sunny beach or sailing around the world in your luxurious yacht. Maybe you plan to travel the world or maybe you just want to relax and enjoy more time with your family. Whatever the case, retirement is supposed to be enjoyable. And certainly no one wants to think about taxes in retirement. Why spoil a good time with such a depressing subject?

Don’t Let Taxes Spoil a Good Retirement

But unfortunately, taxes have a way of messing up retirement for some people. But that’s usually because they don’t take the time to prepare before they actually retire. No one ever likes being bothered by the taxman, but it can much worse in retirement. After all, you can’t really enjoy your golden years if you don’t have enough money to do the things you love. If you’re currently working, then fortunately, you still have time to prepare. And there are several steps you can take to help you cut taxes in retirement.

Have You Thought About a Roth?

One of the easiest and quickest ways to save in retirement is converting your traditional IRA to a Roth IRA. Long before you have to start withdrawing your required minimum distributions (RMDs) from your traditional retirement accounts you should consider converting to a Roth. You don’t even have to do it all at once. You can convert small portions multiple times. You will have to pay taxes on the money, but then it will grow tax-free after that. This could save you big time in retirement. The best time to do this is when your income is lower so your tax bracket is lower.

Donate to Charitable Causes

Donating to charity is another way to lower your tax bill in retirement. Instead of keeping the money from your RMDs from your traditional account you can donate it to charity. That means you avoid the tax penalty for that money. With a qualified charitable distribution, you can actually donate up to $100,000 of your annual RMD tax-free.

Don’t Forget Your Capital Gains

Selling long-term stocks when your income is lower makes good business sense. The lower your income, the lower capital gains tax rate you’ll pay. Of course, you shouldn’t sell a stock simply to get a tax break. But if selling makes sense and you’re in the right position to do it, then offload those stocks when your income is on the lower end.

Should You Delay Social Security Benefits?

One other way to lower your taxes in retirement is to delay collecting Social Security benefits until you turn 70. Not every one can do this, but if you don’t need those benefits right away there are advantages to waiting. If your income level is still higher, your tax bill for Social Security benefits would likely by higher, too. Furthermore, the size of your monthly Social Security benefits will likely increase if you wait till you’re 70.

Ask a Pro

As with any important tax decisions, it’s always a good idea to check with a tax professional before moving forward. Contact GROCO for help with your retirement planning.


We hope you found this article about “Top Ways to Cut Taxes in Retirement” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at  Unfortunately, we no longer give advice to other tax professionals gratis.

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Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio is a proud sponsor of The American Dreams Show.



The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4 (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

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