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Feel free to breathe a sigh of relief on April 15, but don't stop there. Year-round tax planning, especially in retirement, will help ensure your bill isn't a nasty surprise when tax season rolls around again.
By
Tim Dahlberg, CEP®
published
9 April 2026
in Features
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Spring is tax season, and for many people, it's typically the only time they think about their taxes. Although there are very few things you can do to change your taxation from the previous year at this point, a year-round tax plan will allow you to manage your tax bill going forward.
This is particularly important for retirees, who are often surprised by the amount of tax they owe. Even though income may be lower in retirement, Social Security income may be subject to federal taxes, and withdrawals from traditional pre-tax retirement accounts are subject to income tax.
Here's how to implement a year-round tax plan.
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Sign upFirst, consider tax distribution
Whether it's a Roth or a pre-tax retirement account, or even a bank account, your money is in multiple places that all have various tax implications. When you're evaluating your income stream and determining which bucket of money to use, you need to understand each fund and its purpose in your tax plan.
For example, if the money is in a pre-tax retirement account, any withdrawals are subject to income tax, while Roth accounts require taxes to be paid when you contribute.
This becomes even more important when you consider your income tax bracket. If your income is less than $100,800, you are in the 12% tax bracket, but any additional taxable income above that number is taxed at a 22% rate up to $211,400 in earnings. This can make a significant difference over the course of the year.
Year-round tax planning can help you evaluate your effective tax rates, which monitor progressive tax rates, and evaluate your overall taxation, to determine which bucket is the most tax-efficient for you. At the end of the year, your goal should be to have a small refund or tax bill.
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Then, consider Roth conversions to lower taxable income
There's a sweet spot when you retire and when your fixed income disappears, lowering your taxable income and potentially bumping you to a lower tax bracket.
Many retirees have money in a pre-tax retirement account, which means they have a tax bill that needs to be settled at some point. This provides an opportunity to convert that money into a Roth account and settle your tax bill in an efficient way through Roth conversions.
Taking into account tax brackets if you are married, filing jointly, and made $150,000 in a year, you have over $60,000 in 2026 to convert before you reach the next tax rate of 24%. After the money is converted to a Roth account, it grows tax-free.
We don't know what the future holds, and doing these early can benefit your entire estate. Future tax rates are unpredictable, and our health is not guaranteed.
The more money you move into a tax-free account, the less you'll have to worry about tax liability when you or your spouse passes away, and the money is passed to the next generation.
Timing Roth conversions can also depend on market volatility. If a specific investment is down in value, it may be a good time to sell that investment while it's low and convert it into a Roth, reinvest it in the same stock and experience the growth tax-free.
Last, evaluate your stock performance to prevent tax loss
Volatile markets can also be a good opportunity to rebalance your investment portfolio and manage your capital gains tax. Capital losses are tax-deductible up to $3,000.
If you have an underperforming stock, you can use tax-loss harvesting by selling it and repositioning your money in another underperforming stock. This was a useful strategy in 2025 for Liberation Day, and the current volatile market could be another opportune time.
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I recommend evaluating your investments on a quarterly basis and considering rebalancing throughout the year. This can make a significant difference in your tax bill at the end of the year.
However, when it comes to your money, emotion can play a role in decision-making. Taxes can be complicated to understand, and it can take years of experience to understand the overall impact on your financial picture.
If you don't have the experience, you put yourself at risk of making irreversible mistakes if you attempt to do it yourself. A financial professional can assist you with these decisions and strategies, take a wide view of your tax burden, consistently monitor your situation and point out opportunities to be more tax-efficient.
Don't let April 15 be the last day you think about taxes until 2027. Create a tax plan and take steps to be efficient throughout the year.
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This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
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Tim Dahlberg, CEP®Financial Adviser, Burns Estate Planning & Wealth Advisors LLCTim Dahlberg is a financial adviser and Certified Estate Planner (CEP®) with Burns Estate Planning & Wealth Advisors LLC. He earned his MBA with a concentration in Finance from Tulane University in 2016 and his bachelor's degree in Finance from the University of North Florida. Tim lives in Hammond, Florida, with his wife, Bess, and their three children, Jack, Camilla and Brielle, and his dog, Stevie. They enjoy traveling, the beach and golfing.
