For Retirees

You've Earned It. Now Let's Make Sure You Keep It.

Retirement isn't the finish line for tax planning — it's a new phase with entirely different rules. RMD obligations, IRMAA surcharges, the 10-year inherited IRA rule, and estate distribution strategies all require active, coordinated management. Most retirees are paying far more than they should.

See Real Results
$100K
QCD Annual Limit
Per person, age 70½+
37%+
Inherited IRA Tax
Heirs' peak bracket, 10-yr rule
$5,435
Avg IRMAA Savings
Per year, with restructuring
30 Days
Probate Eliminated
With a proper trust structure
The Problem

Three Ways Retirees Are Paying More Than They Should

These aren't obscure loopholes — they're well-established strategies that most advisors simply don't coordinate.

Up to $40,984/yr forced out at 90
Paying Tax on RMDs You Don't Need

Required Minimum Distributions are calculated on your account balance, not your spending needs. At age 90 with a $1M IRA, you're forced to withdraw $81,967/year — whether you need it or not. Every dollar is taxed as ordinary income. Qualified Charitable Distributions can redirect up to $105,000/year directly to charity, satisfying your RMD obligation completely tax-free.

$7,790–$8,279/yr per person in Tier 4–5
Overpaying Medicare Surcharges

IRMAA surcharges don't stop at retirement — they continue as long as your income exceeds the thresholds. Large RMDs, pension income, and Social Security can combine to keep retirees in high IRMAA tiers indefinitely. QCDs, charitable giving structures, and income sequencing can reduce your MAGI and drop you into lower brackets — saving thousands per year.

37%+ tax on every inherited IRA dollar
Leaving the Wrong Assets to Heirs

Under the SECURE Act's 10-year rule, your children must withdraw your entire inherited IRA within 10 years — likely during their peak earning years, at their highest tax rate. Leaving a $1M traditional IRA to a child in the 37% bracket costs $370,000 in income tax. Leaving Roth assets or life insurance instead costs nothing. We coordinate which assets go where.

QCD Strategy

The Most Powerful Tax Strategy Most Retirees Have Never Used

A Qualified Charitable Distribution (QCD) allows anyone age 70½ or older to transfer up to $105,000 per year directly from their IRA to a qualified charity — completely tax-free. The transfer counts toward your Required Minimum Distribution, but it never appears in your taxable income.

This matters even if you take the standard deduction. A cash donation gives you a deduction only if you itemize. A QCD reduces your adjusted gross income — which affects your tax bracket, IRMAA surcharges, the taxability of Social Security, and Medicare premium calculations.

$105,000
Annual QCD Limit (2025)
70½+
Eligible Age
Yes
Counts Toward RMD
Yes
Reduces MAGI
Who Benefits Most
  • Retirees who donate regularly to church, hospital, or charity
  • Anyone whose RMDs exceed their spending needs
  • Those in IRMAA Tier 1 or higher
  • Retirees taking the standard deduction (cash donations don't help them)
  • Anyone concerned about the taxability of Social Security
2025 RMD Amounts by Age & Balance
AgeDivisor$500K IRA$1M IRA$2M IRA
7326.5$18,868$37,736$75,472
7524.6$20,325$40,650$81,301
7822.0$22,727$45,455$90,909
8020.2$24,752$49,505$99,010
8317.7$28,249$56,497$112,994
8516.0$31,250$62,500$125,000
9012.2$40,984$81,967$163,934

Based on IRS Uniform Lifetime Table. QCDs can satisfy up to $105,000 of this obligation tax-free.

QCD vs. Cash Donation — $50,000 Charitable Gift
Cash Donation
Taxable Income$50,000
Tax Paid$12,500
Net to Charity$37,500

You pay tax on the RMD, then donate from after-tax dollars

QCD Strategy
Taxable Income$0
Tax Paid$0
Net to Charity$50,000

The full $50,000 goes to charity — no income tax, no IRMAA impact

Our Approach

Three Disciplines. One Retirement Strategy.

Retirement tax planning, estate planning, and income management are inseparable. We coordinate all three so every decision reinforces the others.

Legal

Estate & Legacy Architecture

Your estate plan needs to account for the tax implications of your IRA assets, the 10-year inherited IRA rule, and the coordination between your beneficiary designations and your overall estate strategy.

  • Revocable living trust (eliminates probate)
  • IRA beneficiary designation optimization
  • Charitable Remainder Trusts (CRTs)
  • Irrevocable Life Insurance Trusts (ILITs)
  • Annual gifting program ($18K/person exclusion)
  • Power of attorney & healthcare directives
Tax

RMD & Income Engineering

Our Enrolled Agents and CPAs design strategies to minimize the tax you pay on required distributions — using QCDs, Roth conversions, and income sequencing to keep more of every dollar you withdraw.

  • QCD strategy and implementation
  • Roth conversion for excess RMDs
  • Capital gains harvesting in low-income years
  • Multi-year tax projection modeling
  • IRS representation if needed
  • Estate tax minimization strategies
Financial

Income Sequencing & Medicare Management

Our IRMAA Certified Planners and National Social Security Advisors design the optimal sequence for drawing from each account type — minimizing taxes on every dollar you spend and every dollar you leave behind.

  • IRMAA bracket management and appeals
  • Medicare supplement plan optimization
  • Withdrawal sequencing strategy
  • Social Security survivor benefit planning
  • Long-term care planning integration
  • Portfolio tax-efficiency review
Estate Planning

How Much of Your Estate Actually Reaches Your Family?

Without a coordinated estate plan, a significant portion of your wealth is redirected to federal and state taxes, probate fees, and avoidable income taxes on inherited IRAs. The charts show the difference between an unplanned estate and one structured with Inspire Tax Advisory.

For a $3M estate, the difference between unplanned and optimized distribution can exceed $720,000 in additional wealth reaching your heirs — without reducing your lifestyle by a single dollar.

Key Strategies That Make the Difference
  • Leaving Roth assets (not traditional IRA) to heirs
  • Naming charity as partial IRA beneficiary
  • Irrevocable life insurance trust for estate liquidity
  • Revocable living trust to eliminate probate
  • Annual gifting to remove assets from taxable estate
Without Planning
Heirs (after tax): 58%
Federal/State Tax: 28%
Probate & Fees: 14%
With Inspire Strategy
Heirs (after tax): 82%
Federal/State Tax: 12%
Charitable Legacy: 6%
Case Studies

Real Results for Retirees

Representative examples based on real client scenarios. Names and identifying details have been changed.

The RMD Optimizer

Reducing $34,000 in Annual RMD Tax Drag Through QCDs and Roth Conversions

Margaret & Frank D., Ages 74 & 72 — Retired teacher and engineer, $1.6M combined IRA, $2,800/mo Social Security each

Results
$8,830
Annual Savings
$4,870/yr
IRMAA Saved
$180K+
Estate Impact

Annual tax savings from QCD strategy ($3,960) plus IRMAA reduction ($4,870 combined, 2026 rates: $405.80→$202.90 × 12 × 2 persons). Estate impact reflects tax elimination on charitable IRA beneficiary designations over projected lifetime.

The Situation

Margaret and Frank were taking their full Required Minimum Distributions each year — $68,000 combined — and paying taxes on every dollar. Their combined income pushed them into the 22% bracket, made 85% of their Social Security taxable, and kept them in IRMAA Tier 2 ($405.80/month per person in Medicare surcharges). Their financial advisor had never suggested alternatives. They were paying $34,000 per year in taxes on money they didn't even need to spend.

The Inspire Solution

We redesigned their entire income strategy around their actual spending needs and tax exposure:

1
Qualified Charitable Distributions (QCDs)
Margaret and Frank already donated $18,000/year to their church and local charities. We redirected those gifts as QCDs directly from their IRAs — satisfying $18,000 of their RMD obligation tax-free. This single change reduced their taxable income by $18,000 and saved $3,960 in federal taxes annually.
2
Roth Conversion for Excess RMDs
The remaining $50,000 in RMDs exceeded their spending needs by $22,000. We converted that excess to a Roth IRA — keeping them in the 22% bracket but building tax-free assets for their heirs and reducing future RMD obligations.
3
IRMAA Bracket Management
The QCD strategy reduced their MAGI below the Tier 2 IRMAA threshold, saving $202.90/month per person ($4,870/year combined) in Medicare Part B surcharges.
4
Estate Plan Update
Our estate attorney updated their beneficiary designations to name their charitable organizations as partial IRA beneficiaries — eliminating income tax on those assets entirely while directing Roth assets (tax-free) to their children.
Who We Serve

Is This Right for Your Situation?

RMD Age (73+)

Required Minimum Distributions are now mandatory — but how you take them is still a choice. QCDs, Roth conversions, and charitable strategies can dramatically reduce the tax you pay on money you may not even need to spend.

You're a strong fit if:
  • Age 73 or older with traditional IRA or 401(k)
  • RMDs exceed your spending needs
  • Donating to charity from after-tax accounts
  • No QCD strategy in place
“We had been donating to our church for 30 years from our checking account. Inspire Tax showed us we could redirect those same gifts as QCDs from our IRA — satisfying our entire RMD obligation tax-free. We saved over $12,000 in taxes last year without changing our giving by a single dollar. We wish someone had told us about this years ago.”
Retired Couple, Ages 74 & 72 — Church Members for 40 Years
Get Started

Schedule Your Complimentary Retirement Review

In a 45-minute conversation, we'll review your current RMD obligations, identify QCD opportunities, model your IRMAA exposure, and show you exactly what a coordinated strategy could mean for your retirement income and your family's inheritance.

Our Offices
Brighton: 10192 Grand River Rd, Suite 100, Brighton, MI 48116
Ann Arbor: 24 Frank Lloyd Wright Drive, Suite L-4000, Ann Arbor, MI 48105
Kalamazoo: 619 W. Kalamazoo Ave, Kalamazoo, MI 49007