4 Tax Moves You Can Still Make in Your 60s That Matter

Core Insights - The article emphasizes that individuals in their 60s still have significant opportunities for tax optimization, particularly as they approach retirement and maintain a steady income source Group 1: Tax Strategies - Maximizing catch-up contributions to retirement accounts can effectively lower taxable income, with 401(k) limits set at $24,500 and an additional $8,000 for those aged 50 and older [2] - Traditional IRAs allow contributions of $7,500 for 2026, plus a $1,100 catch-up for individuals aged 50 and over [2] Group 2: Roth Conversions - A Roth conversion involves rolling over pre-tax retirement account funds into a Roth account, which requires paying taxes on the converted amount [3] - Partial Roth conversions can be advantageous, as they allow for tax payments to be deferred until later, avoiding required minimum distributions (RMDs) that start at age 73 for traditional accounts [4] - Roth IRAs do not have RMDs during the account owner's lifetime, and taxes are already paid upon conversion, potentially reducing future tax liabilities [5] Group 3: Social Security Taxation - Social Security benefits may be taxable, with up to 85% of benefits subject to tax depending on combined income, which includes adjusted gross income and half of Social Security benefits [6] - Exceeding a certain income threshold based on filing status can lead to partial or full taxation of Social Security benefits [6]