Tax Time Bomb in Retirement: RMDs, Roth Conversions, and Tax Diversification

Tax-Deferred Doesn’t Mean Tax-Free

A major theme of the conversation is simple: tax-deferred accounts didn’t eliminate taxes—they postponed them. When withdrawals begin, those dollars can be taxed as ordinary income. That surprise can become a major problem if your retirement income plan doesn’t account for it.

How the SECURE Act Changed Inherited IRA Planning

Joseph breaks down how the SECURE Act reshaped retirement legacy planning. Many non-spouse beneficiaries now face a shorter timeline to withdraw inherited IRA assets, which can push them into higher tax brackets during their peak earning years. Planning for heirs often means planning for taxes.

Roth Conversions Can Help, But They’re Not a “Magic Fix”

Eric explains why Roth conversions require strategy, math, and timing—not guesswork. Conversions are taxed as ordinary income, and the amount matters. Done carelessly, conversions can create higher taxes, increase Medicare premiums, and impact how Social Security is taxed. Done strategically, they can be a powerful tool for tax diversification.

Tax Diversification: Building Multiple “Buckets” for Retirement Income

The goal isn’t just to lower taxes this year—it’s to create options over the next 20–30 years. Tax diversification means having more than one type of account to draw from, so you can manage income, control brackets, and reduce long-term tax drag. The discussion also emphasizes coordinating planning with your CPA so the strategy is connected—not siloed.

Couples and Money: Getting on the Same Page Without the Stress

CFP® Donna Krohn shares practical insights on how couples can work through different financial “styles.” One spouse may love details and spreadsheets, while the other finds it overwhelming. The key is focusing on shared goals, respecting how each person processes information, and building a plan that both people can live with.

Common Retirement Tax Mistakes to Avoid

• Pulling money from accounts without considering how each account is taxed
• Waiting until retirement to start tax planning
• Assuming taxes will automatically be lower later
• Attempting conversions without understanding bracket, Medicare, and Social Security impacts
• Ignoring how inherited IRA rules can affect family members

Next Step: Take the Tax Test and Start Planning

If taxes feel overwhelming, that’s exactly why planning matters. Visit rwataxtest.com to take the quick tax test and see whether your current approach may be improved. You can also call 800-779-1942 to schedule a conversation with Retirement Wealth Advisors.

Important Disclosures

Investment Advisory Services offered through Retirement Wealth Advisors, Inc. (RWA) an SEC Registered Investment Advisor. Eric Kearney Advisor, LLC, Retirement Wealth Advisors, LLC and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.

This information is designed to provide general information on the subjects covered, it is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market, or recommend any tax plan or arrangement. Please note that Erick Kearney Advisor, LLC, Retirement Wealth Advisors, LLC and their affiliates do not give legal or tax advice. You are encouraged to consult your tax advisor or attorney.

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