Skip to content


Posted: January 23, 2018

3 Important Retiree Tax Considerations

After you retire, your tax situation will change. Recognizing that oncoming change is crucial. Some ideas that may seem smart from a pre-retiree standpoint might be ill-advised once you have transitioned into retirement. Other retiree tax concerns may not yet be on your mind.

For example, tax-loss harvesting can be handy when your capital losses outdo your capital gains – when that occurs, you can use up to $3,000 of losses annually to offset ordinary income. You can also carry forward losses exceeding $3,000 to upcoming years to offset future income. If a bear market strikes when you are 40, this tactic has great merit – but if you incur, say, a $60,000 bear market loss in your seventies, it will take you 20 years to get the full tax benefit from harvesting since you can only carry forward a maximum of $3,000 in losses, annually. Consider that Social Security income is partly taxable once your provisional income (adjusted gross income + tax-free interest + 50% of Social Security benefits) tops thresholds of $25,000 (single filer) and $32,000 (joint filers). Lastly, while most retirees never withdraw more than the Required Minimum Distribution from a traditional IRA each year, you may want to if your IRA is large, out of concern for your heirs. They might face a big tax bill if they withdraw an entire Inherited IRA balance.1

Where Is the Best Place in America to Have a Healthy Retirement?

The financial website set out to find the answer late last year, analyzing county-specific data compiled from a joint project of the Robert Wood Johnson Foundation and University of Wisconsin Population Health Institute.

Based on its analysis, America’s 25 healthiest places for seniors seem to be found along its perimeter – counties out west, in Florida, and in New England are conspicuous in the ranking. The #1 pick: San Juan County, Washington, noted for its low obesity and smoking rates and high physical activity rate. Beaufort County, South Carolina finished second, with its preventive care rates ranking high. Similar factors elevated Jefferson County, Washington to the third-highest ranking. The analysis looked at myriad factors, from physicians per capita to percentage of seniors reporting themselves physically active and receiving preventive medical care to rates of diabetes diagnoses.2


According to the most recent Federal Reserve Survey of Consumer Finances, the median balance in tax-advantaged retirement savings accounts for investors aged 55-64 rose to $135,000 in 2016, up from $111,000 in 2013.3

Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, may lose value, no financial institution guarantee. Not a deposit of any financial institution.

CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.

WESTconsin Investment Advisors may be reached at 800-924-0022 ext. 6939 or

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

1 - [12/13/17]
2 - [12/21/17]
3 - [10/25/17]
4 - [10/29/10]


Send this blog post to someone:


WESTconsin Credit Union Notification:

You are now leaving the WESTconsin Credit Union website and going to a website not operated by WESTconsin. WESTconsin is not responsible for the content of this site and the privacy and security policies may differ from those practiced by WESTconsin. The third party website may provide less security than WESTconsin's website. WESTconsin does not represent the third party or you if you enter into a transaction. WESTconsin is not endorsing or guaranteeing the products, information or recommendations provided by linked sites. WESTconsin is not liable for any failure or services advertised on third party sites.