Retiree
Tax Returns
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.
Required minimum distributions (RMDs)
Under SECURE 2.0, the RMD age depends on birth year: 73 for those born 1951–1959, stepping up to 75 for anyone born 1960 or later, beginning in 2033. Account holders must take required minimum distributions from traditional IRAs, 401(k)s, and most other retirement accounts each year once they reach their applicable age. 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.
Inherited IRAs and the SECURE Act
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 income and Form 1099-R
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.
Social Security taxation
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 premium surcharges (IRMAA)
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.
Qualified charitable distributions (QCDs)
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.
What we need to get started
- All Form 1099-R statements for the year
- Social Security benefit statement (SSA-1099)
- Prior year tax return — for RMD calculations and basis tracking
- IRA account statements showing year-end balances (for RMD verification)
- Any QCD documentation from the IRA custodian
- Information on inherited IRAs — original owner's date of death and whether RMDs had begun