📘 Case Study #2: RMD Management & Tax-Efficient Legacy Planning
Clients: Bill (75) and Karen (72)
Location: Southport, NC
Retirement Status: Retired for 10 years
🧑🤝🧑 Profile: Bill and Karen are longtime donors to their church and active in their local community.
💥 Before: Big RMDs, Higher Premiums, and a Taxable Legacy
🌤️ After: Lower Taxes and a Smarter Estate Plan
🔍 The Problem: Tax Burdens Draining Retirement
With large IRA balances, Bill and Karen’s RMDs were forcing up to 85% of their Social Security to be taxed and increasing their Medicare premiums. They were being pushed into a higher tax bracket despite moderate spending. On top of that, they wanted to leave a legacy—without passing along a tax burden.
“It felt like we were losing control of our money, even though we were barely spending more,” Karen shared.
💡 The Strategy: Coordinated Giving and Conversion Plan
- Used Qualified Charitable Distributions (QCDs) to satisfy RMDs tax-free while supporting causes they care about
- Rebalanced income to reduce Social Security taxation
- Transitioned taxable holdings into appreciated positions for step-up-in-basis advantages
- Executed Roth conversions each year within the 24% bracket
✅ The Results: Gifting More, Taxing Less
- Cut their effective tax rate by over 7 percentage points
- Eliminated IRMAA penalties through careful income coordination
- Left a cleaner, more tax-efficient inheritance to their children
- Gave more to charity—without increasing their tax bill
🗣️ Client Review via Wealthtender
“Brett has helped us make better decisions regarding retirement withdrawals and tax planning. His insights have been incredibly valuable.”
💬 What Could a Tax-Smart Retirement Look Like for You?
You've seen how thoughtful planning helped others reduce taxes, avoid costly Medicare penalties, and leave a smarter legacy. Now it’s your turn. Let’s build a strategy that puts you in control — with more clarity, more confidence, and fewer surprises.
