See, Brian’s pensions and Social Security already cover a good chunk of his expected expenses: about $11,000/month. So he’s not dependent on IRA withdrawals... yet.

But that’s the problem.

Because he’s built a big, tax-deferred nest egg, eventually the government will force him to start pulling money out and paying taxes on it. Even if he doesn’t need the money.

The IRS calls them RMDs. Brian calls them his future tax nightmare.

The “Trump Bill” and Shifting Retirement Rules

Brian’s been doing his homework. He’s looked into the so-called “Trump bill”, the tax reform that sunsets in 2026 unless Congress acts. That means today’s historically low tax rates might not be around forever.

He’s asking sharp questions:

- Will RMDs push me into a higher tax bracket later?

- What happens to my deductions after 65?

- Could new laws erase the advantages I’ve counted on?

These aren’t hypotheticals. They’re red flags hiding in plain sight.

And Brian’s not panicking, but he is paying attention. Because for people like him who have saved well, the next tax code change could have a six-figure impact over time.

A Health Wake-Up Call Changes Everything

Six months ago, Brian’s doctor told him he was a Type 2 diabetic. That moment could’ve been the beginning of a downhill slide.

Instead, Brian hit reset.

He started walking three miles every morning. Cut out processed foods. Lost nearly 40 pounds. Got off his blood pressure meds. He even delayed retirement - not because he needed the money, but because he felt better than he had in years.

That health switch flipped a mindset switch, too.

He didn’t want to drift into retirement just because it was time. He wanted to walk into it with clarity. Physically. Mentally. Financially.

And that’s when his focus on the tax side of retirement sharpened.

“I’m Not Afraid of the Market. I’m Afraid of the IRS.”

Brian told us something that stuck.

“I’m not worried about investment returns. I’m worried the IRS is going to quietly drain what I’ve saved through taxes I didn’t see coming.”

That’s the shift.

Most people spend decades worried about market crashes. But for high savers with pre-tax accounts, the bigger threat might be uncontrolled withdrawals later on - when RMDs start stacking on top of pensions, Social Security, and any other income.

That’s how retirees accidentally end up paying more in taxes in retirement than they did while working.

The Power of Seeing It Early

When Brian realized this, he didn’t freeze up. He did what smart retirees do: he started exploring his options early. He’s not trying to outsmart the IRS. He’s just trying to stay one step ahead.

He’s looking at:

- How Roth conversions might reduce future RMDs

- What the post-2026 tax brackets could mean for him

- Whether he should shift certain investments into tax-efficient vehicles

- How standard deductions work after age 65

He doesn’t need to have all the answers now. But he knows that the worst time to start planning for taxes is after the IRS already sends the bill.

Retirement Planning Isn’t Just About Saving, It’s About Sequencing

Here’s the part most people miss: it’s not just how much you’ve saved that matters. It’s where it’s saved and when you’ll be forced to use it. Brian's story reminds us that even a $3 million IRA can be a trap if it forces you to withdraw more than you need, taxed at a higher rate than you expected. The hidden risk isn’t just about a bear market. It’s about getting stuck in a tax bracket you never planned for.

If Brian’s story feels familiar, you’re not alone. Thousands of retirees are walking toward retirement with large IRAs and no plan for how they’ll exit those accounts.

Here’s what you can do now:

- Map out your expected RMDs starting at age 73 (or 75, depending on your birth year)

- Estimate your total retirement income with pensions, Social Security, and investment withdrawals

- Test what happens to your tax bracket when those RMDs kick in

- Explore Roth conversions or other tax-efficient strategies before RMDs begin

Because once the IRS says it’s time to withdraw, you can’t say no.

Want to make sure you’re not missing red flags like Brian nearly did?

Download our Free Retirement Checklist to get started.