Retirees face higher taxes after a spouse's death due to the "survivor's penalty" tax shift.

The "survivor's penalty" refers to increased taxes faced by retirees after a spouse's death when they switch from joint to single tax filing. This shift often results in higher rates and reduced deductions. To mitigate this penalty, financial experts recommend early tax planning, including running projections and utilizing lower tax brackets in early retirement. Strategies include withdrawing from pretax accounts and conducting Roth IRA conversions to minimize tax burdens.

November 06, 2024
6 Articles

Further Reading