6 Months to Retirement: The $1.2M Protection Checklist

The Million-Dollar Window Most Retirees Miss

The six months before you officially retire represent one of the most valuable financial opportunities of your lifetime. During this brief window, strategic moves around retirement tax planning can save the average retiree over $1.2 million in lifetime taxes, penalties, and missed benefits.

This isn't about complex financial maneuvers or risky investments. It's about understanding how retirement income rules work and positioning yourself to take advantage of them before it's too late.

The window typically opens when you stop working but haven't yet claimed Social Security or begun required minimum distributions (RMDs). For many Maryland retirees and those across the Mid-Atlantic, this represents the lowest tax bracket they'll see for the rest of their lives.

Your Pre-Retirement Action Checklist

Roth Conversion Strategy

• Convert traditional IRA funds to Roth accounts while in a lower tax bracket
• Target conversions up to the top of the 12% or 22% tax brackets for 2026
• Remember: once Social Security starts, every additional dollar of income can trigger up to 85% taxation of your benefits

Social Security Timing

• Delay claiming until age 70 if possible for 8% annual increases
• Coordinate spousal claiming strategies to maximize household benefits
• Consider restricted application strategies if you're married

Healthcare Bridge Planning

• Secure health insurance coverage between employer plans and Medicare
• Explore COBRA extensions or marketplace plans
• Plan for potential medical expenses during the transition

Financial advisors consistently see retirees who could have saved hundreds of thousands in taxes if they'd simply understood this timing. The math is straightforward, but the window closes quickly and permanently.

Take Action Before It's Too Late

Every month you wait reduces your options. The complexity of coordinating Social Security, Medicare, tax planning, and retirement withdrawals requires careful timing and strategy.

If you want personalized guidance on how these strategies apply to your specific situation, consider taking our free Retire Ready Score assessment.