Tax-Efficient Withdrawals: What New York Retirees Should Know

Taxes do not stop when your W-2 stops. For many retirees, the decade after leaving full-time work is when tax planning has the biggest impact on spendable income.

Taxable, tax-deferred, and Roth — three buckets Most retirees hold a mix of brokerage accounts (taxable), IRAs and 401(k)s (tax-deferred), and Roth accounts (potentially tax-free qualified withdrawals). Each bucket has different rules, and the order you tap them can change your marginal tax rate year to year.

Required minimum distributions (RMDs) Once you reach the age when RMDs begin, the IRS requires minimum withdrawals from most tax-deferred accounts whether you need the income or not. RMDs can push you into a higher bracket and affect Medicare premiums. Planning ahead — sometimes years ahead — may create more flexibility.

Roth conversions in lower-income years A year with unusually low taxable income (early retirement before Social Security and RMDs, for example) may be worth discussing with your tax professional as a window for partial Roth conversions.

New York considerations State tax treatment of retirement income varies. Pension treatment, property taxes, and residency rules all belong in the conversation. We coordinate with your CPA; we do not provide tax advice.

What to do next If you are within fifteen years of retirement, review your account mix and projected income sources. Our complimentary assessment highlights focus areas — including tax-related topics — based on the information you share.