Tax-focused retirement planning builds your retirement income around the tax return it will produce. At Tiverton Wealth, your retirement plan and your annual tax return are coordinated with our affiliated tax firm, Tiverton Tax, and return preparation is included in the ongoing flat subscription fee.
In your working years, taxes mostly happen to you: payroll withholds, the W-2 arrives, you file. In retirement, you decide what your taxable income will be. Every withdrawal, Roth conversion, Social Security start date and investment sale is a choice, and each one affects more than your tax bill. The same number on your return also determines how much of your Social Security is taxed and what you pay for Medicare.
Texas has no state income tax, so for most retirees here the planning work is federal. That makes it more important, not less, because federal rules are where the large decisions sit.
When retirement planning and tax preparation are handled separately, important information can remain disconnected. At Tiverton, the advice and the return are coordinated through two affiliated firms.
Planning and investment advice
Affiliated tax firm: return preparation
For clients on Tiverton Wealth's Ongoing Subscription, annual income tax return preparation by Tiverton Tax is included in the subscription fee. Fees are explained on How We Get Paid.
Early in the year we set the withdrawal mix, any Roth conversion target and your withholding or estimated payments.
A fall review checks actual income against the plan, so conversions, gain harvesting and QCDs can still be fine-tuned.
Tiverton Tax prepares the return, and its actual figures feed directly into next year's plan.
Retirement taxes run on birthdays. These are the milestones we plan around, in order.
Leave your employer in or after the year you turn 55 and withdrawals from that employer's 401(k) can avoid the 10% early-withdrawal penalty. Rolling it to an IRA first gives up this option.
IRA and most retirement plan withdrawals are no longer subject to the 10% early-withdrawal penalty. Ordinary income tax still applies.
Claiming now locks in a permanently reduced benefit and adds taxable income during years that could otherwise be used for Roth conversions.
Medicare sets your premiums at 65 using your tax return from two years earlier. A large conversion or sale at 63 can raise Medicare costs at 65.
Medicare enrollment begins, HSA contributions must stop, and you qualify for the additional standard deduction for age 65 and older, plus the temporary senior deduction through 2028. Texas over-65 property tax exemptions also become available.
Social Security pays your full benefit. Waiting longer earns delayed retirement credits.
Delayed retirement credits stop. Claiming any later adds nothing.
You can give directly from an IRA to charity. The gift is excluded from income and later counts toward your required distributions.
Withdrawals from tax-deferred accounts become mandatory every year, whether you need the money or not.
Each question below is something we review with clients. The short answer explains the rule. The second line shows what we actually check in your situation.
There is no universal order. The mix you draw from taxable, tax-deferred and Roth accounts sets your taxable income for the year, which then affects your tax bracket, how much Social Security is taxed and your Medicare premiums. We set the mix one year at a time.
We reviewyour account types and cost basis, the room left in your current bracket, and how each dollar withdrawn affects Social Security and Medicare.
A Roth conversion adds taxable income now in exchange for tax-free withdrawals later and smaller required distributions. The years between retiring and starting Social Security or RMDs are often the lowest-income years you will have, which can make them useful conversion years.
We reviewyour bracket now versus your expected bracket after RMDs begin, the Medicare lookback, cash outside the IRA to pay the tax, the five-year rules, and your heirs' likely tax brackets.
RMDs begin at 73 for those born 1951 through 1959 and at 75 for those born 1960 or later. Each year's amount is your prior year-end balance divided by an IRS life expectancy factor. A missed RMD triggers a 25% excise tax, reduced to 10% if corrected promptly.
We reviewestimated RMD size against what you actually spend, the April 1 first-year deadline that can stack two RMDs into one tax year, and which accounts can be aggregated.
Without a paycheck, paying tax during the year is your responsibility. You can avoid underpayment penalties by paying at least 100% of last year's tax (110% at higher incomes) through withholding or quarterly payments. Withholding from an IRA distribution counts as if paid evenly through the year, even if taken in December.
We reviewwithholding on Social Security, pensions and IRA distributions, and whether quarterly estimates or a single year-end withholding works better for you.
Up to 85% of your benefit can be taxable. The amount depends on provisional income: adjusted gross income, plus tax-exempt interest, plus half of your benefits. Those thresholds have never been indexed for inflation, so more retirees cross them every year.
We reviewyour provisional income and whether you are in the range where each extra IRA dollar also pulls more Social Security into taxable income.
You can claim as early as 62 or wait until 70. Delaying creates years with lower taxable income that can be used for Roth conversions. Claiming early stacks the benefit on top of any withdrawals you are already taking.
We reviewyour claiming age alongside your spouse's, survivor benefit considerations, and the conversion window that each claiming choice opens or closes.
IRMAA is a surcharge added to Medicare Part B and Part D premiums when your modified adjusted gross income passes set tiers. It works as a cliff: going one dollar over a tier triggers the full surcharge for that tier. Medicare uses your return from two years earlier.
We reviewwhere your income falls relative to each tier, the timing of conversions and sales, and whether retirement qualifies you to appeal using Form SSA-44 for a life-changing event.
Yes. Legislation enacted in 2025 added a temporary deduction for taxpayers 65 and older for tax years 2025 through 2028. It is in addition to the existing extra standard deduction for age 65, and it phases out as income rises.
We reviewwhether your income is in the phase-out range and how conversions or gains in a given year would reduce the deduction.
Yes, within limits. Long-term capital gains and qualified dividends are taxed at 0% while your taxable income stays inside the lowest capital gains bracket. Low-income retirement years can be used to realize gains and reset cost basis at no federal tax.
We reviewavailable room in the 0% bracket and how realizing gains would interact with Social Security taxation, Medicare tiers and, before 65, marketplace health insurance credits.
It applies to investment income when modified adjusted gross income exceeds fixed thresholds that are not adjusted for inflation. A single large sale of a business, rental or concentrated stock position can trigger it in one year.
We reviewthe timing of large sales, spreading gains across tax years, and which income counts as investment income.
Asset location places investments in the account type where they are taxed most favorably. Interest-heavy holdings often belong in tax-deferred accounts, and assets you expect to hold longest often belong in Roth accounts.
We reviewwhere each holding sits today, the tax cost of moving it, and how your withdrawal plan changes which account gets spent first.
Possibly. Net unrealized appreciation rules can allow employer stock to be moved out of the plan so its growth is taxed at long-term capital gains rates instead of ordinary income rates. The decision has to be made before the 401(k) is rolled over.
We reviewyour stock's cost basis, whether you qualify for a lump-sum distribution, and the tax due in the year of distribution.
Yes, though fewer than during working years. A credit reduces your tax dollar for dollar, so it is worth more than a deduction of the same size. Most credits phase out as income rises, which means the withdrawal and conversion decisions above often decide whether you qualify.
We reviewevery credit your return could claim, and whether a planned conversion or sale would push you past a phase-out.
Possibly. The premium tax credit lowers the cost of marketplace health insurance, and it is based on your modified adjusted gross income for the year. Because retirees control their income, withdrawals, conversions and gains before 65 directly change the credit. The temporary enhanced credits expired after 2025, so the income cliff at 400% of the federal poverty level applies again.
We reviewyour income target for each pre-Medicare year, which accounts to draw from to stay under the cliff, and the year-end reconciliation on Form 8962.
It is a federal credit for taxpayers 65 and older, or retired on permanent disability, with modest income. The income limits are low and nontaxable Social Security reduces the credit, so it mainly helps retirees with small pensions and limited savings.
We reviewwhether your income and nontaxable benefits fall within the limits on Schedule R.
Often, yes. A grandchild who lives with you may qualify you for the child tax credit, and a parent or other relative you support may qualify you for the credit for other dependents. The dependent's own income and your share of their support are the usual tests.
We reviewthe relationship, residency, support and income tests, and whether head of household filing status is also available.
Yes, when they are held in a taxable account. Foreign taxes withheld on international funds and stocks can usually be claimed as a foreign tax credit, offsetting U.S. tax. The same holdings inside an IRA produce no credit.
We reviewthe foreign tax shown on your brokerage 1099 and whether international holdings belong in your taxable account for this reason.
It can. Retirees with earned income who contribute to an IRA or workplace plan may qualify if income is below the limits. Starting in 2027 it is scheduled to become the Saver's Match, a government contribution deposited into your retirement account.
We reviewyour earned income, contribution eligibility and whether you fall under the income limits.
Generally not for new projects. The residential clean energy credit and the energy efficient home improvement credit ended for expenditures made after 2025. Any unused residential clean energy credit from an earlier year can still be carried forward.
We reviewprior-year returns for credit carryforwards that have not been used.
From age 70½, you can transfer money directly from an IRA to a qualified charity. The amount is excluded from your income, which can be better than a deduction because it also lowers the income used for Social Security taxation and Medicare tiers. Once RMDs begin, QCDs count toward them.
We reviewyour giving budget, the annual QCD limit and the paperwork needed so the 1099-R is reported correctly on your return.
Often not much, because most retirees take the standard deduction. Bunching several years of gifts into one year, sometimes through a donor-advised fund, or giving appreciated stock instead of cash can make giving more tax efficient. Recent law also added a limited charitable deduction for non-itemizers starting in 2026.
We reviewwhether itemizing in alternating years makes sense, which holdings to give, and whether QCDs are the better route.
Most non-spouse beneficiaries must empty an inherited IRA within 10 years, and if you had already started RMDs, they must also take annual withdrawals during those years. That can land large distributions in their peak earning years. Inherited Roth accounts follow the 10-year rule but are generally tax free.
We reviewyour heirs' likely brackets, beneficiary designations, and whether converting to Roth during your lifetime shifts tax to a lower-rate taxpayer.
The surviving spouse can generally file jointly for the year of death, then usually files as single. Single brackets and Medicare tiers are roughly half as wide, so similar income can mean a higher rate. This is often called the survivor's penalty.
We reviewspousal IRA options, the filing status timeline, and whether Roth conversions while both spouses are living reduce the survivor's future tax.
Monthly payments are taxed as ordinary income as received. A lump sum rolled directly to an IRA stays tax deferred, but a lump sum paid to you has 20% withheld and is fully taxable that year unless rolled over within 60 days.
We reviewhow each choice fits your withdrawal plan, survivor options, and the rollover mechanics so no tax is triggered by accident.
Contributions must stop once you enroll in Medicare, and Part A coverage can be applied retroactively for up to six months, so contributions should stop ahead of enrollment. After 65, HSA money can pay Medicare premiums tax free, and non-medical withdrawals are taxed as income without a penalty.
We reviewwhen to stop contributing, which medical costs and premiums qualify, and whether the HSA is best spent now or left for heirs.
No. Texas has no personal state income tax, so IRA withdrawals, pensions, Social Security and Roth conversions are taxed only at the federal level. That makes federal planning the main lever for most retirees in Spring and Greater Houston.
We reviewwhether you have income tied to another state, such as rental property or a part-year return from a recent move.
Generally not. Federal law prevents states from taxing retirement plan income paid to nonresidents. You may still owe a part-year return in your former state for the year you moved, and income from property you still own there can remain taxable there.
We reviewyour move date, any part-year return, and the timing of conversions or large withdrawals around the move.
Homeowners 65 and older can apply for an additional homestead exemption and a ceiling that limits school district taxes on the home. Applications go through your county appraisal district.
We reviewthat the exemption has been filed, and how the ceiling factors into a decision to stay, downsize or move.
Texas is a community property state. When one spouse dies, both halves of community property generally receive a new cost basis, not just the deceased spouse's half. That can eliminate built-up capital gains on assets the survivor later sells.
We reviewhow accounts are titled, which assets are community or separate property, and whether to delay selling appreciated assets.
Tax-focused retirement planning builds your retirement income plan around the tax return it will produce. Instead of treating taxes as something to file after the year ends, it decides each year how much to withdraw from which accounts, whether to convert to Roth, when to claim Social Security and how to stay clear of Medicare surcharge tiers.
Yes. Financial planning and investment advice are provided by Tiverton Wealth, LLC. Annual income tax return preparation is provided by its affiliated firm, Tiverton Tax, LLC, under a separate tax engagement agreement. The two firms coordinate, with your written consent, so the return and the plan use the same numbers.
For clients on Tiverton Wealth's Ongoing Subscription, annual income tax return preparation by Tiverton Tax is included in the subscription fee. Current fees are described on the How We Get Paid page and in Tiverton Wealth's Form ADV Part 2A.
Under current law, RMDs begin at age 73 for people born from 1951 through 1959, and at age 75 for people born in 1960 or later.
Up to 85% of Social Security benefits can be included in taxable income. The amount depends on provisional income, which is adjusted gross income plus tax-exempt interest plus half of your benefits. The thresholds are not indexed for inflation.
IRMAA, the Income-Related Monthly Adjustment Amount, is a surcharge added to Medicare Part B and Part D premiums when modified adjusted gross income exceeds set tiers. Medicare uses your tax return from two years earlier, so income at age 63 can set your premiums at 65.
Yes, though fewer than during working years. The ones retirees most often use are the premium tax credit for marketplace health insurance before Medicare, the credit for the elderly or disabled at lower incomes, the credit for other dependents when supporting a grandchild or parent, the foreign tax credit on international investments held in taxable accounts, and the saver's credit for those still contributing to a retirement account. A credit reduces tax dollar for dollar, which makes it more valuable than a deduction of the same amount.
Yes. Federal income tax still applies to IRA and 401(k) withdrawals, pensions, Roth conversions, capital gains and up to 85% of Social Security, and federal income also drives Medicare premiums. Texas residents also have property tax exemptions at 65 and community property rules that affect basis at death.
Yes. Tiverton Wealth serves clients in Spring and across the Greater Houston area, including The Woodlands, Conroe, Tomball, Cypress and Houston. Meetings take place in our office in The Woodlands or by video.
Your two most recent federal tax returns, recent statements for retirement and brokerage accounts, your Social Security statement from ssa.gov, and any pension or annuity paperwork. The tax returns are the most useful starting point.
An introductory consultation is a conversation about where you are and whether our approach fits. There is no cost and no obligation.
Tax preparation services are provided by Tiverton Tax, LLC, an affiliated but separate business, under a separate engagement agreement. Tiverton Wealth and Tiverton Tax share common ownership, which creates a conflict of interest described in Tiverton Wealth's Form ADV Part 2A. Sharing of tax return information between the firms occurs only with your written consent.
This page provides general educational information about federal and Texas tax rules as of October 2026. It is not individualized tax, legal or investment advice. Tax laws change, and their application depends on your circumstances. Consult a qualified professional about your situation before acting.
Certified Financial Planner Board of Standards Center for Financial Planning, Inc. owns and licenses the certification marks CFP® and CERTIFIED FINANCIAL PLANNER™ in the United States.
