1. 13 States That Won't Tax Your Retirement Income in 2026
Kiplinger Article (opens in a new tab)
Where you live in retirement can have a huge impact on how much of your income you keep. Kiplinger reports that several states either have no income tax at all or don’t tax retirement income, including Social Security, pensions, and 401(k)/IRA distributions. Top destinations include Florida, Texas, Tennessee, Illinois, and Pennsylvania. However, you must still consider property and sales taxes, which can vary widely.
Action Steps:
- Check if your current state taxes your retirement income and how much.
- If you're considering moving, compare overall tax burdens - not just income taxes.
- Factor in healthcare, housing, and community support services when evaluating relocation.
2. A New $6,000 Federal Tax Break for Seniors 65+
Elder Answers Article (opens in a new tab)
A newly introduced federal tax deduction could provide a significant boost for older Americans. Thanks to recent legislative changes, seniors 65 and older may now qualify for an additional $6,000 tax break (or $12,000 for couples). This deduction is separate from the standard deduction and applies to tax years 2025 through 2028. It's aimed at reducing taxable income for those living on fixed or moderate incomes, potentially lowering or even eliminating federal taxes owed on Social Security or retirement account withdrawals.
Action Steps:
- Consult a tax professional to ensure you're claiming all eligible deductions.
- Consider adjusting withholding or estimated payments if you expect a lower tax bill.
3. RMD Mistakes Are Costing Retirees - Are You Next?
Business Insider Article (opens in a new tab)
A recent report from Business Insider reveals that many retirees are unintentionally triggering steep tax penalties by missing their Required Minimum Distributions (RMDs). These mandatory withdrawals from traditional IRAs and 401(k)s typically begin at age 72 or later, depending on your birth year. Vanguard found many retirees still aren’t managing their RMDs strategically, potentially losing thousands in unnecessary taxes.
Action Steps:
- Know your RMD age and calculate your annual minimums correctly.
- Set calendar reminders or use auto-withdrawal tools through your brokerage.
- Work with a financial advisor to create an RMD strategy that balances taxes and long-term income.
4. Four Unexpected Ways Retirees Could Be Paying Too Much in Taxes
Yahoo Finance Article (opens in a new tab)
A Yahoo Finance report outlines how many retirees unknowingly pay more in taxes than necessary. Common pitfalls include double-taxation of Social Security, inefficient Roth conversions, and not adjusting tax withholding. Even the order in which you withdraw from retirement accounts can drastically affect your overall tax burden.
Action Steps:
- Reevaluate your withdrawal strategy to avoid bumping into higher tax brackets.
- Explore Roth conversions gradually, especially in years with lower income.
- Consider tax diversification: spreading assets across taxable, tax-deferred, and tax-free accounts.
5. Medicare Scam Calls Have Jumped 40% - Here’s How to Stay Safe
Newsweek Article (opens in a new tab)
Medicare-related scams have surged in frequency, up 40% in the past year, according to Newsweek. Scammers are impersonating Medicare representatives in phone calls and texts, attempting to steal Medicare numbers and personal data. Once your information is compromised, it can be used to file fake claims, alter your health records, or commit identity theft - so, it's important to stay vigilant.
Action Steps:
- Don’t share your Medicare number unless you initiate the contact and verify the party.
- Add call-blocking tools and report suspicious activity to Medicare or the FTC.
