RMDs: The Retirement Tax Bill Most People Don’t See Coming
Retirement planning isn’t just about how much you’ve saved—it’s about not getting clobbered with excess taxes later. Managing RMDs is key!
February 3, 2026
Retirement planning isn’t just about how much you’ve saved—it’s about not getting clobbered with excess taxes later. Managing RMDs is key!
If you’ve built a large retirement nest egg, you’ve also built a large tax problem.
Short answer: Not really. Middle to high income families may not feel it’s worth the headaches and low income families may see little benefit.
Congratulations—you’ve built up a healthy retirement nest egg, maybe even a couple million bucks in a traditional IRA. Cue the applause! No worry about tax traps now! But as you reach retirement and start thinking about how to spend it (or pass it on), Uncle Sam is waiting with a few surprise moves that could mess with your plans. These are the tax traps.
If you have $500,000 in your 401(k) or IRA, it’s not really $500.000. That’s a tax planning mistake most people make going right out of the gate. If you’re married and filing jointly, it’s more likely you could have $325,000 (35% tax bracket) or just $315,000 (37% tax bracket).