Retirement income is rarely simple — especially when it intersects with estates, trusts, inherited accounts, or a spouse's passing.
Retirees face a distinct set of tax rules that don't apply to younger filers. These include required minimum distributions, the taxation of Social Security benefits, Medicare premium surcharges, and complex rules for inherited retirement accounts. Whether you're filing your own return or managing these obligations on behalf of someone in your care, we prepare these returns with full understanding of how all the pieces interact.
Under current law, RMDs generally begin at age 73 — though the required beginning date has shifted multiple times over the years and may change again. Account holders must take required minimum distributions from traditional IRAs, 401(k)s, and most other retirement accounts each year. Failing to take the correct RMD results in a significant excise tax. When someone passes away mid-year, the RMD for the year of death must still be taken — a detail that executors and surviving spouses frequently miss.
The SECURE Act fundamentally changed inherited IRA rules. Most non-spouse beneficiaries who inherited IRAs from decedents dying after December 31, 2019 are now subject to the 10-year rule — the account must be fully distributed within 10 years. Annual RMDs during that 10-year period may also be required if the original owner had already begun taking RMDs.
Surviving spouses have uniquely favorable options — including the ability to roll the inherited IRA into their own IRA and defer distributions under their own timeline.
Pension distributions, annuity payments, and IRA distributions all generate Form 1099-R. The taxable portion depends on whether contributions were made on a pre-tax or after-tax basis. We determine the correct taxable amount and apply the right method for every distribution.
Up to 85% of Social Security benefits may be subject to income tax, depending on combined income. The percentage can increase significantly in years with large IRA distributions, capital gains, or other one-time income events.
Medicare Part B and Part D premiums are income-based. The Income-Related Monthly Adjustment Amount (IRMAA) is based on income from two years prior — meaning a one-time income spike (a large RMD, a sale of inherited property, a trust distribution) can cause elevated Medicare premiums two years later. We flag these situations proactively.
Taxpayers age 70½ or older can make qualified charitable distributions directly from their IRA to a qualifying charity — up to $111,000 per person in 2026 (up from $108,000 in 2025). QCDs satisfy the RMD requirement and are excluded from taxable income entirely — and under the OBBBA's new charitable deduction rules, QCDs are more tax-efficient than cash donations for most retirees. We make sure QCDs are properly reported.