Maximizing what you keep.
Tax preparation is looking in the rearview mirror to see what you owed last year. Tax planning is looking through the windshield to lower your lifetime tax bill. The two are not the same profession.
The single most consequential planning shift of the last decade was the One Big Beautiful Bill Act (OBBBA), signed in July 2025. It made individual tax rates permanent and raised the estate tax exemption beginning in 2026. The Roth conversion case has shifted from beating a sunset to beating your own future tax brackets and Medicare cliffs.
The 2026 tax bracket map
| Rate | Single Filer | Married Filing Jointly |
|---|---|---|
| 10% | Up to ~$12,000 | Up to ~$24,000 |
| 12% | ~$12,000 – $48,475 | ~$24,000 – $96,950 |
| 22% | ~$48,475 – $103,350 | ~$96,950 – $206,700 |
| 24% | ~$103,350 – $197,300 | ~$206,700 – $394,600 |
| 32% | Above $197,300 | Above $394,600 |
Highlighted rows indicate brackets where strategic Roth activity often occurs.
The strategic window
The highest-leverage tax planning often happens in the gap between retirement and age 73 (RMDs). During these years, ordinary income drops to historic lows, creating a "valley" for low-bracket Roth conversions.
Asset location: different outcomes
Sophisticated investors think about asset location: where to own specific assets to minimize tax drag.
| Account Type | Best for... | Why |
|---|---|---|
| Taxable | Munis, individual stocks | Favorable cap-gains rates |
| Traditional IRA | Bonds, REITs | Ordinary income is sheltered |
| Roth IRA | Highest-growth assets | Maximum growth is never taxed |
Tactical moves like tax-loss harvesting (IRC § 1091) and business succession timing can add meaningful after-tax returns over decades.
Annual tax planning checklist · Q4
Critical moves to complete before December 31.
- Project taxable income before year-end.
- Identify Roth conversion bracket headroom.
- Make Qualified Charitable Distributions (QCDs) if over 70½.
- Tax-loss harvest deliberately, avoiding wash-sales.
- Max out HSA, 401(k), and IRA contributions.
Tax planning questions answered
What is a "tax torpedo"?
As provisional income rises, Social Security benefits become taxable in a range that creates effective marginal rates of 40% or higher. Avoiding this is a primary goal of pre-retirement Roth planning.
What is IRMAA and why do retirees care?
IRMAA is a Medicare premium surcharge cliff. One dollar over the income threshold can cost thousands in premiums. We model conversion amounts specifically to avoid these cliffs.
- IRS Revenue Procedure 2025-32.
- IRS Publication 550.
- One Big Beautiful Bill Act (OBBBA), 2025.
- 26 U.S.C. § 1091 (Wash sales).
- 26 U.S.C. § 408(d)(8) (QCDs).
Lower your lifetime bill.
Schedule a complimentary Tax Strategy Session.