The retirement tax bill you don’t have to pay.

Why tax strategy matters more in retirement

While you're working, your tax bill is mostly automatic. W-2 withholding, the occasional Roth versus traditional decision, maybe a Section 125 election. In retirement, every dollar of income is a tax decision. Pension or TSP? Traditional TSP or Roth TSP? Roth conversion this year or wait? Where do you live?

Two retirees with identical pre-tax incomes can pay tax bills $10,000 apart. The difference isn't luck. It's planning.

What this pillar covers

Drawdown sequencing across taxable, traditional, and Roth accounts. Roth conversion ladders during the low-income years between retirement and age 73. State income tax exemptions for federal and military pensions (12 states fully exempt, others partial). IRMAA brackets and the Medicare premium surcharge cliff. Required Minimum Distribution planning. The mechanics of qualified charitable distributions for retirees over 70.5.

The decisions that move the most money

• Where you live — state tax on federal pensions ranges from 0% to 13%. Same gross income.
• Roth conversion windows — the years between MRA retirement and SS claim are usually your lowest tax bracket of life.
• RMD planning — starts at 73 for anyone born 1960–1959, 75 for 1960+. The bracket creep is real.
• IRMAA awareness — Medicare premiums spike at income thresholds. Cliff, not slope.
• The widow's penalty — surviving spouses move from MFJ to single brackets. Brutal for income that doesn't shrink.