Tailor your taxes for retirement

From withdrawals to conversions, taxes in retirement can be a balancing act.

After a fruitful career and plenty of practice paying taxes, you may feel prepared for the tax man in retirement. But a review of your post-retirement taxable income may yield some surprising insights. Examining your position can help you design ways to optimize your current investment strategy. Taking a new look at both fixed and flexible expenses provides the opportunity to ask questions and have discussions with your financial advisor about the tax implications of your total portfolio. When it comes to taxation, the more thorough the examination, the better.

Solopreneur? Take deductions
If you’re still working as a solopreneur, you can actually deduct Medicare Part B and D premiums – even if you don’t itemize. Supplemental Medicare and Medicare Advantage costs are also deductible. But not everyone can deduct – this only applies if you don’t have access to a health plan for your business or through your spouse’s employer or business.

Taxes on Social Security income
Despite any widespread myths to the contrary, Social Security is taxable income. You could pay tax on up to 85% of your Social Security income under certain circumstances, so beware of your filing status and annual income. For example, if you file a return as an individual and your adjusted gross income plus nontaxable interest, in addition to half of your Social Security income, is more than $34,000, you’ll pay tax on up to 85% of that benefit. Adjusted gross income covers everything, from wages (if you are still working) to rental income and, most importantly, any withdrawals from 401(k)s and IRAs. However, Roth IRAs are exempt.

Offsetting required minimum distributions
Depending on your portfolio, required minimum distributions (RMDs) can bump you into a higher tax bracket than you were expecting. It’s important to take RMDs into consideration every year and factor in what you’ll be required to take out of your retirement accounts starting at 72 (or earlier if your plan allows). One way to balance an increased tax burden is with a qualified charitable distribution (QCD). After 70 1/2, you can donate up to $108,000 a year to an eligible charity directly from your traditional IRA – and you won’t have to pay any taxes on it. QCDs can also be a way to meet your RMD, with the caveat that you can’t then itemize the donation as a charitable deduction on your return.

To convert or not to convert
If you’ve got retirement funds in traditional IRAs or 401(k)s, you have the option to convert these to a Roth at any time. This strategy could potentially lower future taxes – but you’ll have to pay taxes in the year you convert. Look at current tax rates and potential future income from your assets and talk to your advisor and tax professional to forecast whether Roth conversions would make sense for you.

The right amount of withdrawals
Conventional wisdom says to follow the “4% rule” – withdrawing no more than that amount of your retirement portfolio every year. But this is only a general guidance – and deserves to be revisited, especially when there are market waves, inflation or other headwinds. Be sure to set up a time to renew and adjust your withdrawals as needed to manage your income bracket most effectively.

Tax implications can be overlooked too often when the focus has been on saving and investing for so many years. Whether you are pre-retirement or post-retirement, there’s always an opportunity to review – and adjust.

Sources: thebalance.com; westernsouthern.com; moneywise.org; wealthenhancement.com; ssa.gov

Raymond James does not provide tax services. Please discuss these matters with the appropriate professional.

If certain conditions are met, ROTH IRA and ROTH 401(k) distributions will be completely income tax free. Unlike Roth IRAs, Roth 401(k) participants are subject to required minimum distributions at age 72 (70 ½ if you reach 70 ½ before January 1, 2020). Investors should consult a tax advisor before deciding to do a conversion.

Withdrawals which exceed income will reduce the value of your portfolio.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

What the ‘One Big Beautiful Bill Act’ means for your finances

The new legislation likely has implications for all federal tax-filers in the United States.

The sweeping tax and spending law signed on July 4, dubbed the One Big Beautiful Bill Act, includes key provisions and potential financial planning opportunities for individuals and families.

The scope of the changes emphasizes the value of having a collaborative professional team, in which your trusted financial, tax and accounting advisors work together to consider your unique circumstances.

This listing is by no means comprehensive to the nearly 900-page law, but you can start here to understand the potential impacts of the tax law changes for you and your family.

Key tax items
If you’re still working as a solopreneur, you can actually deduct Medicare Part B and D premiums – even if you don’t itemize. Supplemental Medicare and Medicare Advantage costs are also deductible. But not everyone can deduct – this only applies if you don’t have access to a health plan for your business or through your spouse’s employer or business.

Tax rates and standard deductions
Notably, the law extended the tax cuts from the Tax Cuts and Jobs Act of 2017, which were set to expire at the end of 2025, affecting the 2026 tax year. The lower tax rates, which range from 10% to 37%, are now permanent in that they have no expiration date. Also, standard deductions were increased for the 2025 tax year: $15,750 for single filers and $31,500 for those married filing jointly.

Gift and estate exemptions
Thresholds introduced in the Tax Cuts and Jobs Act were extended and now have no expiration date. The limits had been scheduled to expire at the end of 2025, and reversion to the previously lower thresholds could have had substantial intergenerational wealth implications for families with sizeable estates.

Under the new law, the gift and estate tax exemptions increase from $13.99 million for single filers and $27.98 million for married couples filing jointly in 2025 to $15 million and $30 million, respectively, in 2026.

SALT cap expansion
The law temporarily raised the state and local tax, or SALT, deduction cap to $40,000, with a 1% increase in the cap each year until 2029, before reverting to $10,000 in 2030. The expanded deduction begins to phase out for those with more than $500,000 in modified adjusted gross income, though all taxpayers can claim at least $10,000.

Senior “bonus” deduction
The law added a new deduction for taxpayers over age 65 for each year from 2025-2028. A source of some confusion, this deduction is not tied specifically to Social Security. Rather, it applies to all tax filers 65 and older: $6,000 for single filers and $12,000 for joint filers. This deduction begins to phase out at $75,000 modified adjusted gross income for single filers and $150,000 for joint filers.

Charitable deduction for non-itemizers
The law reintroduced and increased the deduction for qualified charitable contributions even for taxpayers who don’t itemize. Effective in tax years following 2025, individuals can deduct up to $1,000 and joint filers can deduct $2,000. Once it takes effect in 2026, this provision does not expire.

Child Tax Credit
The law permanently increased the credit from $1,000 to $2,200 in 2025. The credit begins to phase out for single filers with modified adjusted gross income above $200,000 and joint filers above $400,000.

Car loan interest
For tax years 2025-2028, up to $10,000 of interest can be deductible, provided the vehicle was assembled in the United States. This deduction is subject to income limits for loans acquired after 2024.

Electric vehicle credits
Eligibility was narrowed.

Tips deduction
From 2025 to 2028, workers in eligible industries can deduct up to $25,000 in tips from taxable wages. This deduction begins to phase out for single filers with modified adjusted gross income above $150,000 and joint filers above $300,000.

Overtime pay deduction
From 2025 to 2028, single filers in eligible industries can deduct up to $12,500 in overtime pay, though the deduction begins to phase out at modified adjusted gross income above $150,000. Joint filers can deduct up to $25,000, with the phase out beginning at $300,000.

Key financial items

529 savings plans
The law expanded the eligible expenses for which 529 funds can be used. Previously, 529 funds for K-12 students could be used primarily for tuition, with an annual limit of $10,000. Expenses such as tutoring, testing fees, dual enrollment, and educational therapy for children with disabilities are now eligible. And the annual amount was increased to $20,000 starting in 2026.

The law also increased student loan payback from $10,000 to $25,000 per beneficiary, allowed for post-secondary credentialling to pursue a trade or designation, and made permanent rollovers from 529 to ABLE accounts.

New savings accounts for children
The law introduced tax-advantaged accounts for minors. While there are no income or earnings requirements, there are restrictions on withdrawals and investment options.

Children born between Jan. 1, 2025, and Dec. 31, 2028, will receive a $1,000 initial government contribution. Annual contributions of up to $5,000 can be made until the child reaches 18.

Withdrawals cannot be made until the year the minor turns 18, at which point the account follows traditional IRA rules. Distributions will be taxed at ordinary rates for earnings, plus a 10% penalty if applicable.

Student loans
Certain borrower-friendly provisions were rolled back.

Next steps
From saving strategies to timing for purchasing a new car, there is much to consider in the new law’s provisions. As you review these takeaways, consider which items could apply to you and your family. You may find your tax bill is smaller – or your refund larger – creating opportunities for strategic saving, spending or charitable giving.

As always, having a plan will help you be most effective.

Changes in tax laws or regulations may occur at any time and could substantially impact your situation. While we are familiar with the tax provisions of the issues presented herein, as Financial Advisors we are not qualified to render advice on tax or legal matters. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members. Raymond James does not provide tax or legal services. Please discuss these matters with the appropriate professional.

Colleagues, businessman and business woman having a focused and friendly conversation at a desk. Both of them are smiling and gesturing, explaining something in a discussion. The woman, whose face is partially visible, listens attentively while using a laptop. Mentorship, collaboration, or client consultation.

We all have a lot going on. You know you need a financial plan review - but what if you're too busy? Between work, family, and to-do lists that feel like they will last the rest of your life, it's easy to have reviewing your financial plan fall by the wayside.

That, of course, is when the "What If Monster" shows up. You are too busy to review your plan, which becomes outdated and useless. Reviewing your plan is a key part of keeping your long-term goals on track and maybe even helping life get less busy in the future.

Annual Financial Plan Review: A Critical Part of Due Diligence

Reviewing your financial plan every year is not just a good idea. It's vital for due diligence and compliance. When we do a review for our clients, we have a simple mission in mind:

• Checking your life circumstances. Has something changed that might result in shifts in your financial plan? Job loss? Promotion? New baby? Inheritance? Or just shifts in your priorities. Is your financial plan still aligned with your circumstances?
• Checking the market and the economy. The economy is constantly shifting and changing. This might change what investments are a good idea. It might impact what you can leave in long-term savings and how much money you want to have readily available. It also means opportunities you want to move on quickly to gain maximum benefit.
• Renewing our commitment to you. We offer high oversight and care, and routine reviews are part of that.

As trusted financial advisors, we are expected to meet high standards and do these annual reviews to maintain our duty of care towards you and your money. In many cases, they don't even need to take that long.

Flexible Meeting Options - On Your Terms

We recognize that you have a lot of demands on your time and that scheduling your financial plan review can be a challenge. Because of this, we offer flexible meeting options that work with your schedule. You can meet us:

• In person at our office, if that's convenient for you. We can schedule meetings outside bankers' hours, too.
• Via Zoom or Teams, your choice. Our virtual meetings allow you to talk to us from your home or office (or home office) using the software you are most comfortable with.
• Phone call check-ins. You can also check in with us over the phone, from any location you might be in.

Our goal is to make your annual review as easy and stress-free as possible. We will work around you instead of expecting you to rearrange your life around a thirty-minute meeting.

Why Prioritizing Your Plan Matters

Delaying a financial plan review can be bad. It can result in missed opportunities or overlooked risks, either of which can cost you money and time in the future. In many cases, the adjustments we recommend will be minor - we might suggest re-balancing investments, refining your tax strategy, or going over your goals again.

Meet with us now, and you can vanquish the "What If Monster" and face the months ahead with confidence and reassurance.

Let's Quiet the "What If Monster" Together

It's easy to stay proactive with our help. No matter how busy your life is, we can help you find the time for your financial plan review and ensure it remains aligned with your personal goals and economic reality.

Contact CrossleyShear today to schedule your assessment before you miss an opportunity. With convenient meeting options and hours, your annual financial plan review is one item you can easily get off that endless to-do list.

Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Dale Crossley and Evan Shear and not necessarily those of Raymond James.

Ice cream, mojitos, margaritas, daycations, summer movies, concerts, or weekends at Bear Mountain or Miami. Lounging by the pool or cranking up the barbecue. It's summer, baby! You plan to enjoy the summer, right? Of course. Go for it. But keep in mind what lurks behind all that joy, especially in your summer fun on a budget.

What if I go and let summer fun exceed my budget?

Fair question. It's hard to be responsible when scantily clad bodies await in Cali, or you and your spouse can finally see Europe.

The What If Monster's waiting for the vacation cruise, and the bills that add up quickly. Or maybe you've considered the What If Monster and are waffling between spending time in Vegas or staying home.

Fortunately, you don't have to choose between financial wellness and making the most of summer. Keep the What If Monster quiet and enjoy the season with confidence.

Step 1: Give Yourself Permission — But With Parameters

Summer is meant to be enjoyed. Instead of not spending altogether, plan for your summer fun on a budget.

• Create a summer budget: A budget is the first step for any financial goal. Why not do the same for summer fun? Consider what you'd like to do and analyze your finances to see how compatible the goals are with your finances. Be realistic so that you don't compromise financial stability.
• Label it lifestyle spending: Embrace your plans as deserved enjoyment, not extravagance or something unnecessary. When it's intentional, it's not wasteful and is in alignment with values. Just remember, conventional budgeting has limits and categorization. Decide on broader aspirations for the summer and plan how to achieve them.
• Leave room for spontaneity: Like your emergency savings, build a small buffer for the unexpected. Your friends might invite you to a last-minute weekend getaway or day trip. Be ready to manage that instead of flat-out rejecting the possibility or dipping into savings.

Step 2: Be Honest About What Brings You Joy

Are you planning because the experience is meaningful, or because it feels like something you're supposed to do?

• List five to 10 must-dos. Decide what's financially manageable. How many times do you want to spend a night in the town? How long have you waited to visit your best bud in Texas? Focus on experiences like that family trip and avoid extras (multiple weekends in Atlantic City). Determine how to finance your plan.
• Say no to what doesn't align with your goals.
• Be financially savvy about what's feasible. Streamline the list until you have activities that will make memories and be fun.

Step 3: Adjust, Not Abandon, the Plan

If you overspend a little for any given activity or in a specific week or month, don't panic. Falling off the wagon won't ruin your future, but ignoring it might.

• Dial back on the next trip/week/month's expenses. Instead of a weekend in the Poconos, maybe a day picnic or soaking in the sun on the beach could be substituted.
• Avoid dipping into emergency funds unless truly necessary. Do not go into debt. Do not spontaneously fly with the girls to Hawaii. If you use emergency funds, develop a plan to replace what's taken sooner rather than later.
• Consult with your planner about pivoting or rebalancing the financial scales. Consider opening a vacation savings account. Even small amounts saved for summer will sidestep jeopardizing financial goals.

A Plan That Includes Joy Is a Plan That Lasts

Summer sunshine demands attention, and spending is fine. However, a solid financial strategy can weather your summer fun on a budget.

At CrossleyShear, we see your financial plan as part of your lifestyle, not a restriction. A good life is the overall goal. That includes making room for meaningful experiences, memory-making moments, and yes, even summer fun. However, if you worry about how seasonal spending fits into the bigger picture, we're here to help develop a plan that feels good now and later.

Schedule a check-in with CrossleyShear today.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Dale Crossley and Evan Shear  and not necessarily those of Raymond James.

HEATHROW/MERRITT ISLAND, FLORIDA, June 26, 2025 – CrossleyShear Wealth Management, with its emphasis on comprehensive, client centric financial planning, is pleased to announce that Andrew Hall, Halifax Wealth Management of Raymond James, is merging his practice with the CrossleyShear Wealth Management team. Through this strategic merger, Hall will continue providing the same level of care for his clients, and also give them the option to benefit from CrossleyShear’s bench strength – enhanced planning capabilities and investment solutions.

“This merger is truly a synergistic partnership, stated Evan Shear, Co-Founder and Branch Manager of CrossleyShear Wealth Management, and CERTIFIED FINANCIAL PLANNER™ professional. Andy has built his practice on client-centric care, transparency, and a commitment to lifelong learning, so there’s complete alignment with our culture and financial planning philosophy.” Dale Crossley, Co-Founder of CrossleyShear Wealth Management, Branch Manager and Financial Planner – RJFS stated, “Andy is a tremendous asset to our team, bringing 30 years of financial planning expertise to CrossleyShear. We welcome the addition of his network of established clients to our practice where they can expect a seamless transition and the same client care they are accustomed to receiving.”

Andrew Hall stated, “For years, our team has delivered boutique, values‑driven advice. As client needs grew more complex, we searched for a partner that could widen our toolkit without diluting our culture. CrossleyShear lives its promise — Together. Wherever life takes you. — through deeper research, broader planning resources and the same client‑first mindset, so joining forces felt like the most natural way to scale our impact.”

To learn more about CrossleyShear Wealth Management and the team’s financial planning and wealth management solutions, visit CrossleyShear.com. For more information about CSsports, visit CSsports.net.

About CrossleyShear Wealth Management | Since 1998, CrossleyShear Wealth Management has served as a premier financial planning team dedicated to helping provide clients and families with innovative financial solutions and wealth management strategies. With offices in Heathrow and Merritt Island, Florida, the company’s tailored customer care philosophy and customized planning process helps empower its clients to achieve their financial goals and financial independence. Their professional athlete division, CSsports, is exclusively dedicated to serving the unique needs of sports professionals before, during, and after their playing careers. Visit CrossleyShear.com and CSsports.net to learn more.

1515 International Parkway, Suite 2019, Heathrow, FL 32746
407.215.7575

2395 N. Courtenay Parkway, Suite 201, Merritt Island, FL 32953
321.452.0061

CrossleyShear Wealth Management and CSsports are not registered broker dealers and are independent of Raymond James Financial Services. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC.

Investment advisory services are offered through Raymond James Financial Services Advisors, Inc. Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements.