Retirement used to mean being done with the IRS.
Now? It’s less about beachside sunsets and more about juggling tax brackets, Required Minimum Distributions (RMDs), and avoiding Medicare landmines.
At JS Morlu, we meet retirees every summer who’ve made expensive tax mistakes — and they don’t even know it.
Let’s fix that.
Whether you’ve just retired or plan to in the next five years, your retirement tax strategy is more important now than ever. Here’s why mid-year is your golden window, and what smart retirees are doing right now to keep more of what they’ve earned.
Why Mid-Year Is the Best Time for Tax Planning in Retirement
Let’s imagine our fictional client, Diane, a recently retired executive from Vienna, VA. She’s enjoying life, but by June, her financial picture is murky: should she withdraw from her IRA now or wait? Should she sell her rental property before year-end?
That’s where timing matters.
Summer is the sweet spot to:
- Adjust retirement withdrawals before December RMD deadlines
- Rebalance income sources to avoid tax spikes
- Prevent Medicare premium hikes from hidden income (hello, IRMAA!)
By December, most tax-saving levers are already locked in. June through September? That’s strategy season.
3 Costly Retirement Tax Mistakes We See Every Year
1. Missing or Mishandling Required Minimum Distributions (RMDs)
Once you hit age 73, the IRS requires you to take RMDs from your traditional IRAs and retirement plans. Miss one?
That’s a 25% penalty. Yes, twenty-five.
Even if you don’t need the income, ignoring RMDs could turn a calm retirement into a chaotic tax year.
Smart move: Diane works with her JS Morlu advisor to split her RMDs into monthly withdrawals, reducing her tax bite and smoothing her cash flow.
2. Tapping the Wrong Accounts First
Many retirees automatically pull from their 401(k) or IRA while letting Roth IRAs sit untouched. Sounds smart… until it’s not.
Why? Because taking taxable distributions too early can:
- Bump you into a higher tax bracket
- Trigger Medicare IRMAA surcharges
- Cut short the tax-free compounding in your Roth
A coordinated withdrawal strategy, tailored to your income and goals, can extend the life of your portfolio — and cut your lifetime tax bill significantly.
3. Overlooking Capital Gains (and Side Income)
Let’s say Diane sells a vacation home or picks up a part-time consulting project.
Sounds harmless, but guess what?
That extra income stacks on top of Social Security and retirement withdrawals — potentially tipping her into a higher bracket or triggering a tax on her Social Security benefits.
Mid-year planning gives you time to:
- Harvest gains or losses smartly
- Spread income across multiple years
- Plan gifting or deductions to offset spikes
Bonus: Smart Gifting, Giving & Legacy Moves
The years before estate tax laws shift in 2026 are prime time to take advantage of higher gift and estate tax exemptions.
Whether you’re helping a child buy their first home, setting up a trust for grandchildren, or making charitable donations, there are strategic ways to give — without giving the IRS a bonus.
At JS Morlu, we help you:
- Structure tax-efficient gifts
- Explore donor-advised funds
- Protect your estate from future tax law changes
Retirement Should Be Peaceful. Your Tax Plan Should Match.
Diane isn’t a tax expert. And you shouldn’t have to be, either.
You’ve spent your life building your nest egg. Now it’s about protecting it — from preventable mistakes and unnecessary taxes.
That’s where JS Morlu comes in.
As strategic partners, we:
- Review your retirement withdrawal strategy
- Identify hidden tax triggers in your income sources
- Create a customized tax plan so your money works harder — for longer
Let’s Talk Mid-Year Planning
Are you:
- Recently retired?
- A few years out from retirement?
- Wondering if your current CPA is maximizing your retirement income?
Let’s have a conversation.
JS Morlu offers expert retirement tax planning for high-net-worth individuals, business owners, and retirees across Virginia and the D.C. metro area. Our proactive strategies don’t just check the boxes — they create peace of mind.
📞 Contact us today for a retirement tax review before the year-end window closes.
You’ve done the hard part. Now let’s make sure your retirement plan works for you — not just the IRS.