It happens more often than you’d think: someone walks into my office in their early 70s, a confused look on their face and a bigger-than-expected tax bill in hand.
They’re wondering,
“Why did my taxes jump so much this year?”
And as much as it pains me to say it, my answer is almost always the same:
“I wish we had met when you were 60 instead of 70.”
Let Me Explain.
In the U.S., once you hit age 70½ (now 73 for many, but let’s stick with the classic number), you’re required to start taking RMDs—Required Minimum Distributions—from your retirement accounts.
Sounds boring, I know. But it’s important.
The key word here? Required.
Uncle Sam has patiently waited while your retirement accounts grew tax-deferred. Now he’s knocking—fork and knife in hand—ready for his slice of the pie. And those RMDs? They’re taxed as ordinary income, which means they can push you into a higher tax bracket faster than you can say, “What happened?!”
But RMDs Don’t Just Affect Taxes
They can ripple out and impact:
Your Social Security benefits
Your Medicare premiums
Your investment strategy
Even your eligibility for other retirement programs
It’s like tugging on one thread and unraveling an entire sweater.
Retirement Planning Is a Puzzle
I’ve built a lot of puzzles—especially with my daughter, Caroline. She’s great at them. But every now and then, she gets stuck. She can’t find Minnie’s shoe or Mickey’s eye, and that’s when she calls me in for help.
Retirement planning works the same way. Most people can piece together part of the puzzle on their own. But there are moments when you need someone to step in—someone who knows what piece fits where.
That’s where a retirement planner and a CPA come in.
Together, they help you fit everything together the right way.
Here's the Problem
In my experience, most financial planners and CPAs don’t talk to each other.
They should.
But for whatever reason—laziness (yep, I said it), professional boundaries, or just lack of coordination—it rarely happens.
And when they’re not working together, you end up with the mismatched puzzle—and a surprise tax bill.
So, What Can You Do?
Start early.
Don’t wait until the IRS is forcing your hand.
Make sure your financial planner and CPA are communicating—before you retire.
Ask questions.
Be proactive.
The earlier you start the planning conversation, the more options you’ll have—and the more enjoyable your retirement years will be.
Because let’s be honest—retirement should feel like finishing a puzzle with your grandkids.
Not scrambling to pay a tax bill you didn’t see coming.
Want help putting your retirement puzzle together?
I’d love to be part of that conversation—before the RMDs come calling.