US Retirement Accounts Need Smart Tax Planning

Big pretax 401(k) and IRA balances can create future required withdrawals, potentially raising taxes on Social Security and Medicare premiums if planning waits too long.
One strategy is tapping tax-deferred accounts gradually while selling appreciated assets within current capital-gains thresholds, helping shrink balances over time and reduce later required withdrawals.
Another option is converting part of a traditional IRA or 401(k) during lower-income gap years before required withdrawals begin, moving future growth into tax-free accounts.
A federal law also means heirs generally must empty inherited tax-deferred accounts within 10 years, making estate planning important for families with sizable balances.
Starting next year, workers over 50 earning >$150K will have to make catch-up contributions to after-tax accounts, a change aimed at limiting future pretax buildup.