Recently, I wrote about the top items to tackle before you step away from work. Now that you’ve retired, let’s discuss this Dayton post-retirement checklist so you can track your progress and adjust.
Key Takeaways
- Customize your tax withholding with an IRA rollover: Rolling your 401(k) to an IRA gives you control over tax withholding instead of a mandatory 20% federal rate.
- Capitalize on low-income gap years: Married couples filing jointly in 2026 can realize up to $98,900 in taxable income at the 0% federal capital gains rate.
- Manage RMDs if you’re charitably inclined: At age 70.5, you can donate up to $111,000 directly from an IRA to an eligible charity and satisfy your RMD tax-free.
Your Dayton Post-Retirement Checklist: A Quick Overview
Here’s a quick look at the steps you should consider to get your retirement finances in order and set up a reliable system.
- Consolidate and simplify your retirement accounts
- Set up your automated retirement paycheck and tax withholding
- Run a year-one spending check
- Explore gap year tax strategies
- Monitor withdrawals to avoid Medicare IRMAA surcharges
- Plan ahead for Required Minimum Distributions (RMDs)
- Review your property and liability coverage
- Build a helpful “when I’m gone” file
Dayton, OH Step-by-Step Post-Retirement Guide
1. Consolidate and simplify your retirement accounts
Over the years, you’ve probably accumulated a trail of 401(k)s, 403(b)s, and IRAs. Now that you’ve passed your official retirement date, you might want to roll them into one IRA. Fewer accounts mean less confusion about your asset allocation and issues with RMDs.
There’s also a tax withholding reason to use an IRA in retirement. The IRS requires a mandatory 20% federal tax withholding on distributions from your 401(k) or 403(b). If you’re in the 12% tax bracket, you’ll be forced to pull out more than you need. Plus, you can’t put those funds back after filing your taxes.
Rolling your accounts into an IRA gives you the control to choose exactly how much tax to withhold. One caveat to this would be if you’re retiring between age 55 and 59.5. The IRS waives the 10% early withdrawal penalty in that window if you pull income from an employer plan. You lose that exemption if you roll those funds into an IRA before you turn 59.5.
Example: Jim and Susan just retired with a household portfolio of $1,000,000. They need $40,000/yr net from their accounts to meet their income goals. Let’s assume they withhold 12% federal and 3% state from an IRA. In that case, their gross withdrawal would be just over $47,000/yr.
But if they left the money in their 401(k)s, they’d be forced to withhold 20% federal and 3% state. That means pulling around $52,000/yr instead. Their withdraw rate would jump from 4.7% to 5.2% to cover unneeded tax withholding. Sustainability could be a problem depending on their asset allocation. Not to mention, pulling that extra money inflates their taxable income for the year.
Don’t forget your beneficiary designations: Whenever you rollover a 401(k) or 403(b) into an IRA, your beneficiary designations don’t come with you. You’ll need to set up new primary and contingent beneficiaries on the receiving account. As I mentioned in my last article, retirement is a great time to double-check all of your beneficiary designations because they override what’s in your will.
2. Set up your automated retirement paycheck and tax withholding
If you’ve planned out your investment withdrawal rate, now you have to actually execute it. You’ll need to set up a monthly income transfer and figure out how to keep enough cash ready so your income doesn’t halt.
When I’m working with retired clients, they don’t have to worry about that issue. My custodian, Altruist, allows me to set up custom portfolio cash and asset allocation targets. I rebalance your investments throughout the year to keep your cash bucket full. This means your retirement paycheck is sent directly to your checking account, rain or shine.
But generating portfolio cash is only half the battle. You’ll also want to coordinate with your CPA and financial adviser to figure out the right federal and state tax withholding rates.
To set up tax withholding for your investment withdrawals, you’ll need to complete IRS Form W-4P or W-4R. You’ll use Form W-4P specifically for periodic income, like your automated monthly paycheck. But if you’re taking a one-time lump sum for a kitchen remodel, you’ll use Form W-4R. The default withholding for a lump sum is 10%, but filing Form W-4R lets you make changes.
When it comes to Social Security, your options are a bit limited. You’ll have to submit IRS Form W-4V to the Social Security Administration and choose between a rate of 7%, 10%, 12%, or 22%. If you don’t, Social Security defaults to withholding 0%. Depending on your tax bracket, this could lead to underpayment penalties come April.
3. Run a year-one spending check
I find that most of my retired clients dislike budgeting. And I totally get it. You haven’t had to track your spending in decades, and you shouldn’t necessarily have to start now. But the only way that works is when your retirement income comfortably exceeds your spending.
Retirement income gaps aren’t usually due to overspending on groceries and utilities. The real leak comes from dipping into retirement accounts for large, irregular expenses like a new roof, a kitchen remodel, or a big trip. It’s easy to think, “I spend $7,000 a month,” but then forget that you pulled $40,000 extra during the year.
The trick to planning the right retirement income is building those lump costs into your plan and double-checking your real spending as you go.
In my pre-retirement checklist, I introduced Tim and Sara, a married couple in Centerville, Ohio. They built an initial target retirement budget of $9,400 a month. After their first year of retirement, they realized they were repeatedly pulling out extra money. Instead of stressing, we looked at what they actually spent and adjusted their target to protect their future cash flow.
| Budget Adjustment | Monthly Impact | Why |
| Initial target budget | $9,400 | Original estimate |
| Actual travel spending | + $400 | Adjusted based on year-one |
| Home maintenance fund | + $600 | For unexpected repairs |
| New Target Withdrawal | $10,400 | New estimate |
If you want to track your retirement spending without feeling like you have a second job, there are some great options. You could try zero-based budgeting, where you allocate your income to different bank accounts like bills, fun spending, taxes, etc. You could also use an app. Monarch Money is great for an automated, all-in-one financial dashboard, while YNAB (You Need A Budget) lets you give every dollar a job and plan ahead. Either way, the goal is to know where your money is going so you make sure your portfolio can sustainably support your lifestyle.
4. Explore gap year tax strategies
In the years before social security benefits and RMDs kick in, you might be in a lower tax bracket. This is a great time to review proactive income tax strategies with the help of your CPA.
With my clients, I look for a few ways to optimize these low-income early retirement years, including:
- Considering Roth conversions: You can systematically convert money from your pre-tax accounts into a Roth IRA to build future tax-free resources.
- Filling up lower tax brackets: Taking more pre-tax income early can help smooth out your lifetime tax bill. It also shrinks your pre-tax accounts, potentially reducing the impact of RMDs.
- Rebalancing taxable portfolios: If you have a brokerage account with unrealized capital gains, you could rebalance at lower costs. According to Fidelity, married couples filing jointly in 2026 can realize up to $98,900 in taxable income and pay potentially 0% in federal long-term capital gains tax.
- Don’t overlook local Montgomery County senior tax exemptions: Dayton retirees should check their eligibility for the Montgomery County Homestead Exemption. If you’re 65 or older (or permanently disabled), you may be able to shield some of your home’s market value from local property taxes.
Local note: Ohio recently moved to a flat 2.75% income tax rate on non-business income over $26,050 for 2026. But retiring doesn’t automatically eliminate local municipal income taxes. IRA and pension income is usually exempt from city tax, but taxable severance pay or consulting work isn’t. So be sure to work closely with your financial adviser and tax professional before pulling any of these levers. A simple mistake can accidentally push you into a higher tax bracket and trigger issues like Medicare IRMAA, the loss of deductions or credits, or underpayment penalties.
5. Monitor withdrawals to avoid Medicare IRMAA surcharges
Health insurance coverage costs can vary based on how much money you make. For example, Medicare Part B and Part D premiums are tied to your income via an income related monthly adjustment (IRMAA).
And Medicare IRMAA operates on a cliff system with a two-year look back, meaning your 2026 premiums are based on your 2024 tax return. If your income goes even $1 over the threshold, you’ll have to pay the higher premium for the year.
For example, let’s say Dave and Sarah need an extra $40,000 for a kitchen remodel. If they pull the full amount from their traditional IRA, their modified adjusted gross income will go up. Because of that extra withdrawal, their MAGI might cross the first 2026 IRMAA cliff of $218,000 for a married couple filing jointly. They’d have to pay around $1,948 a year more for their combined Part B premiums and $348 a year more for Part D. That’s a $2,296 hit to their household cash flow just for crossing the line.
A Certified Financial Planner® professional and CPA, can help you be strategic so you don’t accidentally increase your health costs. I try to help my clients avoid this by managing where we pull money from. For example, instead of taking all $40,000 from one account, we might pull $15,000 from a traditional IRA, $15,000 from a tax-free Roth IRA, and $10,000 from bank cash.
If you’re curious about the 2026 IRMAA brackets and want to learn more about this topic, check out my recent article: How to Avoid IRMAA Surcharges: 8 Smart Ways to Reduce Medicare Premiums.
6. Plan ahead for Required Minimum Distributions (RMDs)
Whether you want to or not, the IRS will eventually force you to pull money out of your pre-tax retirement accounts. Under the SECURE 2.0 Act rules, if you were born between 1951 and 1959, your RMD age is 73. If you were born in 1960 or later, it starts at age 75.
I help my clients make a plan for where these forced withdrawals are going. If you need more money for your retirement budget, it’s an easy decision. But if your income already covers your lifestyle, we need to get strategic.
You aren’t allowed to transfer your RMD into a Roth IRA. So if you want to keep the money invested, you’ll have to pay the taxes and then place the proceeds in a brokerage account or high-yield savings. But there’s another option if you want to lower your tax bill and you’re charitably inclined
You can send money directly from your IRA to an eligible charity starting at age 70.5, and it counts toward your RMD. This is known as a Qualified Charitable Distribution (QCD) and according to Charles Schwab, in 2026 you can donate up to $111,000. These gifts never hit your tax return which helps protect your Medicare premiums and lower your tax bill.
7. Review your property and liability coverage
Now that you’ve retired, you’re probably driving fewer miles to work. This is a great time to review your risk management strategy with your adviser and insurance agent. Consider adjusting things like:
- Your auto insurance mileage: If your commute to the office is gone, update your annual vehicle mileage with your carrier. Lower mileage usually translates to some premium savings.
- Remove lien holders from your policies: If you’ve paid off your home and vehicle in prep for retirement, removing the lender from your policy can also lower your insurance costs.
- Update liability protection: When was the last time you checked to see if your liability coverage matches your overall net worth? Retirement is a great time to make sure you’ve added an umbrella policy, and have the right protection for all of your assets.
8. Build a helpful “when I’m gone” file
In my pre-retirement checklist, I talked about the importance of updating your estate plan. Now that you’re retired, you should consider communicating your intentions with your family. One way to do this is by building a master “in case of emergency” file.
I see a lot of spouses divide their financial duties. Maybe you handle the daily bills while your partner files the taxes. If something happens (disability or death), both of you need to know how to access everything. And eventually, your kids will too.
Your master file should include a list of accounts, passwords, who your key professionals are, and any active life insurance policies you own. It’s also smart to include a basic letter of instruction. According to Charles Schwab, this isn’t a legally binding document like your will, but a letter of instruction gives your family directions on how to handle your financial affairs.
Common Post-Retirement Mistakes to Avoid
There are some fixable issues that seem to come up pretty regularly in early retirement:
- Withdrawing from your largest account by default: It’s logical to think that the best account to draw from in retirement is your biggest. But if that account is a tax-deferred 401(k) or traditional IRA, every dollar you pull counts as taxable income. Taking a large chunk of money without checking your tax bracket can accidentally trigger an avoidable tax bill and Medicare premium surcharges.
- Over-withdrawing to cover mandatory withholding: You might be surprised to learn that most 401(k) plans have a mandatory 20% federal tax withholding requirement. So even if you’re in the 12% federal bracket and need $10,000 for a home project, you might have to withdraw $12,500 from your 401(k). Doing this repeatedly inflates your taxable income and pulls more money from your 401(k) when you don’t have the ability to put it back after you file your taxes.
- Underspending out of fear: I meet a lot of people who are so nervous about long-term care costs and stock market drops that they deprive themselves of traveling and enjoying their healthy years. A good retirement plan gives you the permission to actually spend your money with confidence.
- Ignoring Medicare open enrollment: Once you pick a Medicare Part D or Advantage plan, it’s easy to put it on autopilot. But insurance companies change their drug rules and premiums every year. Failing to review your health insurance coverage might cause an unnecessary leak in your cash flow.
How Often Should You Review Your Retirement Plan?
A retirement plan is a living, breathing document that requires monitoring and adjusting. And if you’ve saved well, you might not want to spend your new free time managing spreadsheets and stock charts. You could delegate the heavy lifting to a professional.
At Stage Ready Financial Planning, I use a synchronized process. We don’t just meet once a year and hope for the best. Instead, we’ll rotate through your retirement plan systematically so nothing falls through the cracks:
- Spring Income and Goals Meeting: In the spring, we’ll meet to update your goal progress and retirement income guardrails plan. We’ll review your income projections and make sure any required minimum distributions (RMDs) are handled.
- Summer Check-In: I use the middle of the year to check in on a few rotating topics. You’ll receive a full review of your estate plan, long-term care strategy, property insurance, and more.
- Fall Tax Planning & Investment Meeting: In the fall, we’ll meet to update your tax plan and investment strategy. If you’ve officially stepped away from work, this is when we’ll coordinate with your CPA on things like tax-loss harvesting, Roth conversions, and charitable giving.
- Winter Tax Filing Prep: At the beginning of each year, I’ll send you a customized tax letter for your CPA that outlines exactly what documents to expect from Altruist. It also recaps any transactions and tax withholding, so your return is filed correctly.
Want One-on-One Post-Retirement Guidance? Let Stage Ready Financial Planning Help You
You don’t have to implement your retirement plan by yourself. At Stage Ready Financial Planning, I help Dayton and Southern Ohio families build and manage comprehensive plans so they can enjoy a secure retirement without stressing about the daily details. If you’re looking for a trusted partner to handle the heavy lifting, let’s talk.
Schedule your intro call today!
Frequently Asked Questions (FAQs)
What expenses tend to increase after retirement?
Inflation will drive up most of your expenses over a 20 or 30 year retirement. But historically, the categories that have increased the most are healthcare costs and taxes. You’ll probably spend more on travel and entertainment in the first few years but this might decrease as you settle in. Proactive tax planning combined with inflation protection in your retirement income plan can help offset some of these increases.
How do I manage taxes on retirement income in Ohio?
Thankfully Ohio doesn’t tax your Social Security benefits. You’ll still owe federal taxes, and your traditional IRA and 401(k) withdrawals are going to be subject to state income tax. The good news is that starting in 2026, Ohio moved to a flat 2.75% tax rate on non-business income over $26,050. I help my clients build the right tax withholding into their retirement income so they don’t take a hit in April. I covered this and more in a recent post: Ohio Retirement Tax Strategies to Optimize Your Budget.
Should I change my investment strategy after retiring?
It really depends on how you prepared before you stepped away. Hopefully, you’ve already adjusted your asset allocation to match your risk tolerance, time horizon, and retirement income needs. But if you haven’t, now’s the time to build a cash cushion and bond buffer so you can weather down markets without selling stocks at a low. At the same time, you don’t want to abandon growth, because you still need stocks to fight inflation. If you aren’t sure how your portfolio is positioned, consider working with a financial adviser.
Should I work with a financial advisor after retiring in Dayton?
I’m obviously biased here, but if you’re tired of running your own spreadsheets and want to delegate the day-to-day management, working with a financial adviser is a great move. A professional can help you navigate tax laws, manage your investments, and provide objective advice so you don’t have to second-guess yourself all of the time. You can offload the planning and implementation to spend more time enjoying the retirement you’ve worked so hard for.
About Joseph Eck, CFP®
Joseph A. Eck, CFP®, is the owner and lead financial advisor at Stage Ready Financial Planning in Dayton, Ohio. He’s dedicated to helping retirees navigate the complex mechanics of drawing income and minimizing taxes in retirement. By combining comprehensive financial planning with ongoing investment management, Joe provides the clarity his clients need to feel confident about their spending. A proud member of the Dayton, Ohio community, Joe delivers down-to-earth, fiduciary guidance so you can truly enjoy the life you’ve saved for.
About Stage Ready Financial Planning
Fiduciary Financial Advisor Serving Dayton, Ohio. Retirement Planning that stays in sync with your life. Providing fee-only wealth management, designed to handle the math so you can enjoy the music.
Stage Ready Financial Planning helps retirees and savers over 50 throughout Dayton, Ohio and surrounding communities stay in sync with their goals through fee-only and fiduciary wealth management. Designed for households with $750,000+ invested for retirement, Joseph Eck, CFP® helps clients coordinate and implement retirement income, investments, taxes, and more into one cohesive strategy.
From orchestrating predictable retirement income to reducing unnecessary taxes and market noise, Stage Ready Financial Planning was built to help clients enjoy retirement with clarity, confidence, and financial harmony.
Article References
- IRS. “Rollovers of Retirement Plan and IRA Distributions.” Accessed July 22, 2026. https://www.irs.gov/retirement-plans/plan-participant-employee/rollovers-of-retirement-plan-and-ira-distributions
- IRS. “Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs.” Accessed July 22, 2026. https://www.irs.gov/taxtopics/tc558
- IRS. “About Form W-4V, Voluntary Withholding Request.” Accessed July 24, 2026. https://www.irs.gov/forms-pubs/about-form-w-4-v
- IRS. “About Form W-4P, Withholding Certificate for Periodic Pension or Annuity Payments.” Accessed July 24, 2026. https://www.irs.gov/forms-pubs/about-form-w-4-p
- IRS. “2026 Form W-4R.” Accessed July 24, 2026. https://www.irs.gov/pub/irs-prior/fw4r–2026.pdf
- InvestMates. “Monarch Money vs YNAB: Which App Should You Choose in 2026?” Accessed July 27, 2026. https://investmates.io/blog/monarch-vs-ynab
- Fidelity. “Capital gains tax: Definition, rates, and ways to save.” Accessed July 27, 2026. https://www.fidelity.com/learning-center/smart-money/capital-gains-tax-rates
- Centers for Medicare & Medicaid Services. “2026 Medicare Parts A & B Premiums and Deductibles.” Accessed July 27, 2026. https://www.cms.gov/newsroom/fact-sheets/2026-medicare-parts-b-premiums-deductibles
- IRS. “Retirement Topics: Required Minimum Distributions (RMDs).” Accessed July 27, 2026. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds
- Charles Schwab. “Reducing RMDs With QCDs in 2026.” Accessed July 27, 2026. https://www.schwab.com/learn/story/reducing-rmds-with-qcds
- Charles Schwab. “The Importance of a Letter of Instruction in Your Estate Plan.” Accessed July 27, 2026. https://www.schwab.com/resource/scfr_family_letter
This communication is for informational purposes only and is not intended as investment, tax, accounting, or legal advice, as an offer or solicitation of an offer to buy or sell, or as an endorsement of any company, security, fund, or other securities or non-securities offering. This communication should not be relied upon as the sole factor in an investment making decision. Past performance is no indication of future results.
