“Retirement Tax Changes You Need to Know — Before It’s Too Late”

Financial Horizons: Insights for Building Wealth and Securing Your Legacy

By Dr. Jose G. Cardenas, Chief Tax Strategist at The C & R Group, LLC

Taxes and retirement go hand in hand — but they don’t always move in sync. The meme’s question asks:

“Are you aware of any tax laws or changes that may affect your retirement savings or income?”

If your answer is “not really” or “I’m not sure,” you’re in good company. But in today’s shifting tax and political landscape, not knowing may cost you tens or hundreds of thousands of dollars.

Let’s dig into five key tax changes (or proposals) you should be watching — and how to position your retirement strategy accordingly.

1. Changes to Required Minimum Distributions (RMDs)

Congress has periodically toyed with the age at which retirees must begin taking RMDs. If they push this age even higher, it gives savers more years of tax-deferred growth.
On the flip side, lowering the age—or changing the percentage distributions—could accelerate tax liability for many retirees.

Action: Stay flexible. Maintain diversified accounts (traditional & Roth) so you can manage when and how much to withdraw.

2. Tax Bracket Adjustments and Rate Changes

Federal tax rates and bracket thresholds evolve. For high-income retirees, small changes in rates or thresholds can push you into a higher tax burden.
Plus, inflation adjustments (or the lack thereof) can “bracket creep” your income over time.

Action: Periodically revisit your projections under different tax scenarios and run “what-if” analyses with your advisor.

3. Social Security Taxation Tweaks

Currently, up to 85% of your Social Security benefits are taxable depending on your “combined income.” Some proposals suggest increasing that to 100% for higher-income individuals.

Action: Keep your other retirement income streams in check so you don’t unintentionally push too much of your Social Security into the taxable zone.

4. Changes in Capital Gains & Investment Taxes

Capital gains tax rates, surtaxes on high earners, and investment-related taxes (like the Net Investment Income Tax) are often on the chopping block.
These changes could affect how you harvest gains, manage portfolios, or shift assets over time.

Action: Emphasize asset location, tax-efficient strategies, and timing of sales in your retirement plan.

5. Potential Reforms to Roth & Traditional Conversions

Some proposals suggest limiting or modifying the ability to convert large sums from traditional to Roth accounts, or even taxing conversions more aggressively. Such changes could alter the value of future tax-free growth.

Action: If you’re leaning toward converting accounts, do so under a plan that can adapt if rules change midstream.

Putting It All Together: Evolve, Don’t Lock In

The key to protecting your retirement against legislative risk is flexibility and planning. That means:

• Maintaining a mix of tax-deferred, tax-free, and taxable retirement accounts
• Having a strategy for partial Roth conversions
• Planning your withdrawals to manage tax brackets and optimize Social Security
• Running periodic scenario analyses as new proposals surface

If you’re unsure whether your retirement plan is ready for these changes — or if you’re overexposed to tax risk — let’s talk.

📅 Book your personalized retirement tax consultation today
👉 https://calendly.com/thecrgroup/strategy

About the Author

Dr. Jose G. Cardenas is a retired U.S. Army Finance Officer and the Chief Tax Strategist at The C & R Group, LLC. With a Doctorate in Business Administration and over 20 years of experience in financial strategy, tax planning, and life insurance, Dr. Cardenas helps individuals and business owners protect their wealth and build a legacy. Learn more at www.thecrgroupllc.com.

📌 Disclosure: This article is for educational and informational purposes only and is not intended to serve as personalized legal or investment advice. Dr. Jose G. Cardenas, DBA, provides tax advisory services through The C & R Group, LLC. Insurance strategies, including Indexed Universal Life (IUL) and annuity products, may be offered through his role as a licensed financial professional affiliated with Experior Financial Group.

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