The Future Tax Bill Checklist
You know what you’ve saved. Do you know how you’ll use it? Your investments matter. So do the accounts holding them. These eight questions explore how your savings could become retirement income—and what taxes and market swings could mean along the way.
Allocation: what you own. Location: which tax bucket holds it. Neither replaces the other. There is no score or automatic recommendation. Mark what you know and what deserves a conversation.
1. How much of your savings is actually yours to spend after tax? Separate taxable, pretax and Roth accounts; their balances do not all translate into the same spending money.
Picture this: A $25,000 qualified Roth withdrawal and a $25,000 fully pretax withdrawal can leave different amounts to spend.
2. Do your investments and their account locations work together? Asset allocation is what you own. Asset location is which tax bucket holds it. Both need to fit your risk, liquidity and tax picture.
Picture this: Two households can own the same mix of stocks and bonds but hold them in different account types.
3. Which account will provide your retirement paycheck—and why that one? Coordinate withdrawals with pensions, Social Security, taxes and cash reserves.
Picture this: A monthly transfer may be convenient, but does its source fit the rest of your income plan?
4. If you need an extra $25,000, how much must you withdraw to cover the purchase and taxes? Look beyond the purchase price to the tax treatment of the account funding it.
Picture this: A roof repair funded entirely from a pretax IRA may require more than $25,000 to cover both the work and tax.
5. If markets fall early in retirement, where will spending money come from? Decide how reserves, investment risk and withdrawal flexibility work together before a downturn.
Picture this: Which account would cover your bills if selling investments meant realizing losses?
6. Could growing pretax balances create larger required withdrawals than you need—and affect other parts of your plan? Review required distributions alongside other income, taxes and potential Medicare premium effects.
Picture this: You may not need additional spending money, but a required withdrawal can still add taxable income.
7. Should your next contribution or conversion build a different tax bucket—and what would that cost today? Compare pretax and Roth choices without assuming one is always better. Include current tax cost, available cash and future scenarios.
Picture this: Choosing Roth contributions within an available workplace plan is different from converting an existing IRA.
8. Would the plan still work if one spouse had to manage it alone? Review changes in income, taxes, spending and practical account management. If you are single, consider who could help if needed.
Picture this: A surviving spouse may face different tax circumstances while many household bills remain.
Does your portfolio have a spending and tax strategy? My first question: __________________________________
Educational information, not individualized advice. No tax savings or investment outcome is guaranteed. Responses stay on this page and are not submitted or saved.
Sources: IRS Publication 590-B · SSA Medicare premiums
Download the PDF Explore a complimentary discovery meeting →
