Retirement changes where your income comes from and how
it is taxed. We help connect your withdrawals, benefits,
investments, and giving goals so you can approach the
next chapter with a clearer tax picture.
Tax preparation and planning before and throughout retirement.
Start with the decisions that matter
A tax plan for the retirement you are building.
Whether retirement is approaching or already underway,
the timing and source of your income matter. At MFG Tax
Advisors, we help connect your tax return with the
decisions ahead, coordinating with your financial planner
when appropriate. Your spending needs, account types,
family circumstances, and goals guide the plan.
01
Your retirement income
Choose withdrawals with the full tax picture in view.
Traditional IRA and pre-tax workplace plan withdrawals
are generally taxed as ordinary income; qualified Roth
withdrawals are generally tax-free. Taxable brokerage
accounts follow different rules for gains, dividends,
and interest. We can work with your financial planner
to compare which accounts to use and when.
Pensions and annuities may be fully or partly taxable,
depending on how they were funded. Early withdrawals
can have additional taxes unless an exception applies.
There is no single withdrawal order that works best
for everyone.
Review lower-income years before future withdrawals grow.
The years after retirement and before Social Security
or required minimum distributions begin may offer an
opportunity to convert some pre-tax retirement savings
to a Roth IRA. Other lower-income periods can also be
worth reviewing. We can compare a partial conversion
with your expected current and future taxes.
The taxable portion of a conversion adds to income
in the conversion year. It can affect Medicare premiums,
health insurance assistance, and other income-based
benefits. Required minimum distributions cannot be
converted, and Roth withdrawal rules still apply.
Depending on your filing status and combined income,
up to 85% of Social Security benefits may be included
in federal taxable income. We can review how retirement
withdrawals, investment income, tax-exempt interest,
and benefit timing interact with your household tax plan.
This does not mean your benefits are taxed at an 85%
tax rate. It means that up to 85% may be included in
taxable income. Minnesota has its own subtraction
rules, so federal and state results can differ.
Prepare for RMDs before the first deadline arrives.
Required minimum distributions, or RMDs, generally require
annual withdrawals from traditional IRAs and many workplace
retirement plans once you reach the applicable starting
age. We can review your birth year, account types,
balances, and deadlines with your financial planner
or account custodian.
For many current retirees, RMDs begin at age 73; your
applicable age and any workplace-plan exception depend
on your situation. Delaying the first RMD until the
following April can place two RMDs in one tax year.
Roth accounts generally have no lifetime owner RMDs;
inherited accounts have separate rules.
Look at income changes before Medicare premiums are set.
Higher income can trigger an Income-Related Monthly
Adjustment Amount, or IRMAA, for Medicare Part B and
Part D. Social Security generally uses tax information
from two years earlier. We can review how large
withdrawals, realized gains, or Roth conversions may
affect those future premiums.
A qualifying event such as retirement or reduced work
may support a request for a new IRMAA determination;
a reduction is not automatic. Before Medicare, income
changes can also affect Marketplace health insurance
assistance.
If you are at least age 70 and a half, a qualified
charitable distribution, or QCD, may allow a direct
transfer from an eligible IRA to an eligible charity
without including that amount in federal taxable
income. A qualifying transfer can also satisfy all
or part of an IRA RMD for that year.
Annual limits, eligible accounts, charity restrictions,
and documentation apply. The IRA custodian must pay
the charity directly, and the same QCD cannot also
be claimed as an itemized charitable deduction.
Coordinate the transfer before taking a withdrawal
intended for giving.
Plan for gains, income, and withholding throughout the year.
Selling investments to fund retirement can create capital
gains, while dividends and interest may add taxable
income even without a sale. We can coordinate with your
financial planner to review holding periods, loss
carryforwards, potential tax-loss harvesting, and
federal and Minnesota payment needs.
Investment losses and wash-sale rules need a review
across relevant accounts. Pension or IRA withholding
and estimated payments can help cover the tax due.
Reviewing withholding and estimates regularly helps
avoid surprises, but it does not reduce the underlying
tax liability.
Review state rules alongside your federal retirement plan.
Minnesota does not treat every retirement income source
the same way. We can review the Social Security Benefit
Subtraction and, where applicable, the Qualified Public
Pension Subtraction, along with how withdrawals and
other income affect eligibility.
The public pension subtraction applies only to qualifying
benefits and is subject to income and other requirements;
it does not exempt all pensions. A move or part-year
residency can also change state filing obligations.
Review current-year rules before relying on an expected
state tax benefit.
Review prior returns, expected retirement dates, income
sources, account types, and benefit statements.
Identify upcoming withdrawals, major purchases,
and changes in household circumstances.
02
Prepare.
Prepare your federal and applicable state income tax
returns, review retirement distributions and relevant
deductions, and explain how your income sources
affect the results.
03
Plan.
Coordinate with your financial planner on withdrawals,
Roth conversions, RMDs, charitable gifts, and tax
payments. Revisit the plan as income, health coverage,
and family needs change.
Make the most of your appointment
Bring the pieces of your tax picture.
Your prior tax return and expected retirement date
or major income changes
Forms 1099-R, SSA-1099, and pension or annuity statements
Recent account statements, prior year-end retirement
balances, and RMD notices
Records of Roth conversions, after-tax IRA contributions,
and prior Forms 8606
Brokerage tax statements, charitable gifts,
and QCD acknowledgments
Medicare or Marketplace notices, tax payment records,
and planned large withdrawals
General educational information, reviewed October 29, 2026.
Eligibility, limits, and tax treatment depend on the tax
year and your circumstances. Not every strategy applies
to every taxpayer. Review current IRS and Minnesota
guidance with your tax preparer.
