Retirement in Sight – January 2018

3 Important Retiree Tax Considerations

After you retire, your tax situation will change. Recognizing that oncoming change is crucial. Some ideas that may seem smart from a pre-retiree standpoint might be ill-advised once you have transitioned into retirement. Other retiree tax concerns may not yet be on your mind.

For example, tax-loss harvesting can be handy when your capital losses outdo your capital gains – when that occurs, you can use up to $3,000 of losses annually to offset ordinary income. You can also carry forward losses exceeding $3,000 to upcoming years to offset future income. If a bear market strikes when you are 40, this tactic has great merit – but if you incur, say, a $60,000 bear market loss in your seventies, it will take you 20 years to get the full tax benefit from harvesting since you can only carry forward a maximum of $3,000 in losses, annually. Consider that Social Security income is partly taxable once your provisional income (adjusted gross income + tax-free interest + 50% of Social Security benefits) tops thresholds of $25,000 (single filer) and $32,000 (joint filers). Lastly, while most retirees never withdraw more than the Required Minimum Distribution from a traditional IRA each year, you may want to if your IRA is large, out of concern for your heirs. They might face a big tax bill if they withdraw an entire Inherited IRA balance.1

Where Is the Best Place in America to Have a Healthy Retirement?

The financial website set out to find the answer late last year, analyzing county-specific data compiled from a joint project of the Robert Wood Johnson Foundation and University of Wisconsin Population Health Institute.

Based on its analysis, America’s 25 healthiest places for seniors seem to be found along its perimeter – counties out west, in Florida, and in New England are conspicuous in the ranking. The #1 pick: San Juan County, Washington, noted for its low obesity and smoking rates and high physical activity rate. Beaufort County, South Carolina finished second, with its preventive care rates ranking high. Similar factors elevated Jefferson County, Washington to the third-highest ranking. The analysis looked at myriad factors, from physicians per capita to percentage of seniors reporting themselves physically active and receiving preventive medical care to rates of diabetes diagnoses.2

On the Bright Side

According to the most recent Federal Reserve Survey of Consumer Finances, the median balance in tax-advantaged retirement savings accounts for investors aged 55-64 rose to $135,000 in 2016, up from $111,000 in 2013.3


Kent Butcher may be reached at 918-747-5585 or


1 – [12/13/17]
2 – [12/21/17]
3 – [10/25/17]



This material was adapted from MarketingPro, Inc. content and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

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