Contact Us

Reducing Taxes Before and During Retirement: Smart Strategies for Pre-Retirees

For many people in their 50s and early 60s, retirement is no longer a distant goal—it’s an approaching reality. While planning for income, healthcare, and lifestyle is crucial, one often overlooked aspect is taxes. How you manage your taxes now and in retirement can have a significant impact on how far your savings will go. Here’s what you need to know to reduce your tax burden both before and during retirement.

 

1. Take Advantage of Catch-Up Contributions

Once you hit 50, you become eligible for “catch-up” contributions to retirement accounts. In 2025, this means an extra $7,500 for a 401(k) and $1,000 for an IRA, on top of the standard limits. These contributions are tax-deductible, reducing your taxable income today while allowing your investments to grow tax-deferred for retirement.

 

2. Consider Roth Conversions Strategically

If your income allows, converting some of your traditional retirement accounts to a Roth IRA can make sense. You’ll pay taxes on the converted amount now, but future withdrawals from the Roth are tax-free. The key is to carefully time conversions—spreading them over multiple years can help avoid pushing yourself into a higher tax bracket.

 

3. Potential to Optimize Social Security Timing

Social Security benefits are taxable, but the portion that is taxed depends on your overall income. By strategically delaying benefits until age 70, you may increase your monthly benefit and potentially reduce the taxable portion if you can supplement income from other sources. Coordinating withdrawals from retirement accounts with Social Security timing can help minimize taxes over your lifetime.

 

4. Plan Required Minimum Distributions (RMDs)

Once you turn 73, you must begin taking RMDs from most traditional retirement accounts. Failing to plan for RMDs can lead to unnecessarily high tax bills. Working with a financial planner to schedule withdrawals efficiently—perhaps converting to a Roth before RMD age—can reduce the tax bite and leave more assets for heirs.

 

5. Manage Investment Income

Capital gains and dividends can increase your tax bill in retirement. Strategies to manage taxes on investments include:

  • Tax-loss harvesting: Offsetting gains with losses to reduce taxable income.
  • Holding investments long-term: Long-term capital gains rates are lower than short-term rates.
  • Using tax-efficient funds: Certain mutual funds and ETFs distribute fewer taxable gains.

 

6. Consider Charitable Giving Strategies

For those charitably inclined, making donations directly from an IRA using a Qualified Charitable Distribution (QCD) can satisfy RMDs without adding to taxable income. Charitable contributions also provide deductions if you itemize, helping reduce your overall tax burden.

 

7. Work with a Tax-Savvy Financial Planner

Tax laws change frequently, and what works today may not be optimal tomorrow. A financial planner who understands retirement tax planning can create a comprehensive strategy that balances income needs, estate planning goals, and tax efficiency.

 

The Bottom Line

Taxes can be one of the largest expenses in retirement—but with careful planning, you can minimize their impact. By strategically using retirement account contributions, Roth conversions, Social Security timing, and other tax strategies, you can keep more of your hard-earned savings and enjoy a more secure and comfortable retirement. To talk about your retirement planning, contact a Vertex advisor at in**@************rs.com.

 

 

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

Vertex Planning Partners and LPL Financial do not provide legal advice or tax services. Please consult your legal advisor or tax advisor regarding your specific situation.

Traditional IRA account owners have considerations to make before performing a Roth IRA conversion. These primarily include income tax consequences on the converted amount in the year of conversion, withdrawal limitations from a Roth IRA, and income limitations for future contributions to a Roth IRA. In addition, if you are required to take a required minimum distribution (RMD) in the year you convert, you must do so before converting to a Roth IRA.

Share This:

Facebook
Twitter
LinkedIn
Contact Us

Connect

Connecting with Vertex Planning Partners is your first step towards a tailored financial future. Reach out to discuss guidance that aligns with your unique financial goals and aspirations.

Connect With Us

Schedule a meeting with a  Vertex Planning Partner Advisor who will answer any questions you might have. 

p: 630.836.3300 – e: in**@************rs.com

We’re here to help. Email or call us and speak with a Vertex Planning Partner Advisor who will answer any questions you might have: 630.836.3300 or in**@************rs.com

Download our Independent Advisors eBook

Enter your email to download our Independent Advisors eBook and unlock the secrets to a tailored financial future.

Download our PATH eBook

Enter your email to download our PATH eBook and unlock the secrets to a tailored financial future.

Peter M. Babilla, CFP®, CRPS®

PARTNER

Peter Babilla brings 40 years of experience in investment management and fiduciary* financial consulting to Vertex Planning Partners, LLC.

Pete graduated from Indiana University in Bloomington, Indiana with a Bachelor’s of Science in Finance.

He began his career in 1983 with a focus on institutional fixed-income portfolio management, primarily working with community banks. After a decade serving institutional clients, Pete shifted his focus to working with individuals, families and business owners, providing guidance and education in all areas of Wealth Management.  Among his areas of focus are accumulation and retirement planning, investment management, risk management, and estate and wealth transfer.

Pete’s planning philosophy allows him to create a personalized program for clients, based on their own unique goals and circumstances.  The extensive investment and planning platform offered by Vertex enables him to create a highly customized program, tailored to each individual client.

Pete and his wife Suzanne have two children, and have resided in Wheaton, Illinois for the past 30 years.  He enjoys golf, reading, and traveling with his family.  Pete gives back as a past Board Member of the Epilepsy Foundation of Greater Chicago, where his focus is on improving the lives of those living with epilepsy.

Pete works as fiduciary for his clients and holds the CERTIFIED FIANANCIAL PLANNER™ (CFP®) designation and the Chartered Retirement Plan Specialist (CRPS®) designation.

Envelope

JUSTIN J. D'AGOSTINO, CFP®, TPCP®, ChFC®, CRPC®

PARTNER

Justin D’Agostino joined Vertex Partners in 2019 and serves a select group of business owners and affluent families. He specializes in investments, financial planning, and succession planning. His interest and knowledge in providing comprehensive financial planning and wealth management services to clients was sparked when he worked at a boutique tax and wealth management firm in Michigan. He has nine years of experience in the financial services industry, and his mission is to provide every client with targeted, comprehensive financial advice and to help them implement customized strategies designed to move them closer to accomplishing their unique goals.

Justin attended Hillsdale College where he earned his BA in Accounting and Financial Management and was a member and captain of the football team. Justin is a CERTIFIED FINANCIAL PLANNER™ Professional, and holds the Tax Planning Certified Professional®, Chartered Financial Consultant® and Chartered Retirement Planning Counselor™ designations.

Justin and his wife, Alexandra, reside in Chicago, Illinois. He is an avid sports fan and enjoys golfing, playing soccer and spending summer weekends with his family.

Envelope Linkedin

Scott A. Sandee CFP®, CIMA®, CPWA®, CEPA

MANAGING PARTNER

Scott Sandee brings over 20 years of experience to his role as Managing Partner of Vertex Planning Partners, leading the firm’s efforts to assist middle-market business owners and eight and nine-figure families in comprehensive planning. We enable clients to achieve their financial goals by tailoring solutions to their unique aspirations and situations. Leveraging his experience in sophisticated investment techniques and financial strategies with privately held family businesses, supported by extensive post-graduate education focused on exit planning, wealth management, estate planning, investment analysis, insurance planning, risk management, and tax optimization, he:

  • Assist owners in preparing for and executing a successful transition.
  • Develop financial strategies to maximize sales proceeds and reduce future taxes.
  • Listen carefully and create personalized solutions that reflect each client’s unique hopes, goals, and concerns.
  • Explain complex and technical concepts with clarity and simplicity.

 

Scott guides successful entrepreneurs and wealthy families through the transfer of ownership of their privately held companies.

Designations: Certified Financial Planner® Certified Private Wealth Advisor® Certified Investment Management Analyst® Certified Exit Planning Advisor Certified Merger & Acquisition Advisor

Linkedin Envelope

Julie Hupp CFP®, MBA

PARTNER

Julie Hupp, CERTIFIED FINANCIAL PLANNER™ professional, has worked in the accounting and corporate finance field since 1987. She began her career as a CPA with Deloitte & Touche, specializing in the financial needs of small businesses. Then spent the next 13 years in corporate financial planning and business development at Baxter and TAP Pharmaceuticals. Recognizing her passion for personal financial planning, Julie started her business in 2006 where she focuses on comprehensive financial planning strategies and implementation.

Julie graduated from University of Illinois with a BS in Accountancy. She received her Master’s in Management with a concentration in Finance from Northwestern University’s Kellogg School of Management in 1994.

Outside the office, Julie is the co-founder of the 12 Oaks Foundation, which has merged with Cal’s Angels, and is a former Board member. Julie enjoys cooking, reading, running, triathlons and doing almost anything outdoors. A great weekend is spending time with her husband and two adult kids boating at their lake house in Wisconsin.

Envelope

Steven P. Franzen, CPA, PFS, CGMA

MANAGING PARTNER

Steven P. Franzen, CPA, PFS, CGMA is a public accountant and consultant with more than 23 years of experience helping individuals and businesses reduce their tax liability.  He began his career under the guidance of Patrick M. De Sio, CPA, CGMA and in 1996 became Mr. De Sio’s partner in De Sio, Franzen & Associates, Ltd. Steve’s expertise include entity design, complex tax strategies and multigenerational wealth transfer.  As Managing Partner, Steve conducts his practice under the philosophy that the client’s investment in their CPA should yield a return on that investment – most of the time that return is realized when working with clients on planning for their future. In an effort to increase the planning capabilities of the firm,  Steve formed Vertex Accounting Partners, LLC to ensure their guiding philosophy will continue well into the future.

Steve is a certified public accountant and has earned the professional designations of Personal Financial Specialist and Chartered Global Management Accountant.  He is a member of the American Institute of Certified Public Accountants and the Illinois CPA Society.  Steve earned a B.S. degree in accounting from Millikin University.  He and his wife Kristie live in Sugar Grove, IL with their three children.

Linkedin Envelope

Gregory P. Benner, MST, CPWA®, CFP®, CLU®, ChFC®, AIF®, RMA®

MANAGING PARTNER

Greg Benner advises high-net-worth and ultra-high-net-worth business owners, individuals and families on advanced tax, risk management, retirement, estate planning, and wealth strategies.  

As a co-founder of Vertex Planning Partners, he works closely with clients, families, and their professional advisors—CPAs, attorneys, and business stakeholders—to implement thoughtful, durable planning strategies. His approach prioritizes clarity, coordination, and disciplined execution.

For twenty-four years, Greg’s work has focused on designing and coordinating multi-factor, integrated plans involving:

  • Tax Efficiency
  • Wealth Transfer Structures
  • Retirement Planning
  • Investment Strategy, and
  • Long-Term Financial Architecture

 

Drawing from his own experience as a founder, business and real estate investor, and multi-generational family business member, he understands some of the challenges that can arise for business owners as they consider an exit. Multi-disciplinary, intentional planning with stakeholder communication creates structure, mitigates risk, addresses tax implications, and preempts issues that can arise.

Greg holds a Master of Science in Taxation, a graduate program that deepened his technical training in federal income taxation, partnership and corporate taxation, estate and gift tax, and tax procedure. This academic work enhances his ability to help families and business owners navigate complex tax environments and align their financial and estate-planning objectives across generations.

Designations:

  • Certified Private Wealth Advisor®
  • Certified Financial Planner®
  • Chartered Financial Consultant®
  • Chartered Life Underwriter®
  • Accredited Investment Fiduciary®
  • Retirement Management Advisor®

 

Licenses:

  • Series 65 registration held with Vertex Planning Partners, LLC
    Illinois, Ohio, Wisconsin & Louisiana Life & Health Insurance License

 

Greg is deeply committed to lifelong learning and continuous professional development in the areas of tax, estate planning, and private-wealth strategy.

Linkedin Envelope

Michael D. Bellis, CFP®, CLU®

MANAGING PARTNER

Michael D. Bellis, CFP®, CLU® began his career as a financial planning professional in 1994. His practice is centered on holistic financial planning, astute risk management strategies and empirical, research-driven portfolio construction. He began his career in partnership with his father under the name Bellis & Associates. Together, their practice and reputation for excellence dates back more than 40 years and includes multiple generations of the same families. After his father’s retirement several years ago, Mike continued to build a client-centric, consultative practice before forming Vertex.

Mike holds the CERTIFIED FINANCIAL PLANNER™ certification and is also a Chartered Life Underwriter. He has been an active member of both the Society of Financial Services Professionals and the National Association of Insurance and Financial Advisors. He earned a B.S. in Business & Marketing from Illinois State University. Mike is a lifelong resident of Naperville, Illinois. He and his wife Tanja have three children.

Linkedin Envelope