Keep More of What You've Saved. Tax Planning Built for a 25–30 Year Retirement
Most people think about taxes once a year, in April, when it's already too late to change anything. At A5 Financial, tax planning for retirement is a year-round discipline, one that shapes how we structure your accounts, time your withdrawals, and position your portfolio so you pay less over the full course of retirement, not just this filing season.
Washington State Gives You a Real Tax Advantage — If You Know How to Use It
Washington has no state income tax, which is a meaningful benefit for retirees. But that advantage doesn't manage itself. Federal income brackets, Required Minimum Distributions, Medicare IRMAA surcharges, and Washington's capital gains tax on high earners all interact in ways that can quietly erode what you've built — unless the planning is done in advance.
We work with clients across Bothell, Bellevue, Kirkland, Seattle, and the broader Eastside to map out exactly how these rules apply to their specific situation, and to make decisions well before a deadline forces a reactive choice.
A Year-Round Discipline That Compounds Over Time
A single well-timed Roth conversion or a carefully sequenced withdrawal year won't transform your retirement. But ten or fifteen years of those decisions, made consistently and coordinated with your full financial picture, can mean a meaningfully lower tax bill across the arc of a long retirement. That's what proactive tax planning actually looks like — not a one-time optimization, but an ongoing commitment to keeping more of your money working for you.
John Carruthers, CFP®, and Neil Fenning CFP® work directly with every client on this planning. There's no one-size-fits-all withdrawal strategy. Your tax picture is specific to you, and the planning reflects that.
Roth Conversions: The Window Before RMDs Changes Everything
The years between retirement and age 73 (when Required Minimum Distributions begin) are often the lowest-income years of a retiree's financial life. That gap is an opportunity. Converting traditional IRA funds to a Roth during this window means paying tax at today's lower rates rather than at the higher rates that often accompany RMDs later. We identify how much to convert each year, in which accounts, to keep you in the most favorable bracket possible without triggering unnecessary tax exposure.
Asset Location: Every Investment in the Right Account
Where you hold an investment matters almost as much as what you hold. Tax-inefficient assets — bonds, REITs, actively managed funds — belong in tax-advantaged accounts. Tax-favored assets belong where their growth compounds without unnecessary drag. We analyze your full account picture across traditional IRAs, Roth accounts, and taxable brokerage accounts, then structure your holdings so the tax burden on your portfolio is as low as it can be without changing your investment strategy.
Withdrawal Sequencing: The Order You Draw Down Accounts Matters
Most retirees don't realize that the sequence in which they pull from different accounts can have a significant impact on their total lifetime tax bill. Drawing from the wrong account at the wrong time can push you into a higher bracket, trigger IRMAA surcharges on Medicare premiums, or accelerate RMDs in ways that compound the problem. We build a withdrawal sequence tailored to your income needs, tax situation, and long-term goals — and we revisit it every year as tax law and your circumstances evolve.
Tax Planning for Tech Professionals With Equity Compensation
RSU vesting events, ESPP sales, and stock option exercises are among the largest taxable events a person can face in a given year. For Amazon, Microsoft, Google, and startup employees in the Seattle area, these events don't just affect this year's tax return — they can affect Medicare costs two years from now, Roth conversion capacity, and exposure to Washington's capital gains tax.
We map your equity compensation schedule year by year, coordinate the timing of exercises and sales around your other income, and work to avoid bracket surprises and AMT exposure before they happen. This kind of advance planning is where the real savings live.
We Will Work Alongside Your CPA
A5's tax planning is integrated directly into your financial plan. We handle the forward-looking strategy: timing decisions, account structure, conversion windows, and withdrawal sequences. Your CPA or tax preparer handles the filing. The two functions work best together, and we're structured to coordinate with your existing tax professional so nothing falls through the gap between planning and compliance.
If you don't have a CPA relationship, we can help you think through what to look for. What we don't do is leave tax strategy as an afterthought — it's embedded in every retirement plan we build.
Common Questions About Retirement Tax Planning
How can I pay less tax on my retirement income in Washington state?
Washington's lack of a state income tax is a genuine advantage, but federal taxes still apply to IRA withdrawals, Social Security benefits, and investment income. The most effective strategies include Roth conversions during lower-income years, careful withdrawal sequencing across account types, and asset location optimization. The right combination depends on your income sources, account balances, and timeline.When should I start Roth conversions?
The ideal window is typically the years between retirement and age 73, when Required Minimum Distributions begin. During this period, income is often lower, which means conversions can be done at a lower tax rate. The amount to convert each year depends on your current bracket, projected RMDs, and Medicare premium thresholds — all of which we model as part of your plan.What is IRMAA and how does it affect my retirement planning?
IRMAA (Income-Related Monthly Adjustment Amount) is a surcharge added to Medicare Part B and Part D premiums for higher-income retirees. It's calculated based on income from two years prior, which means a large Roth conversion, a stock sale, or an RMD spike today can increase your Medicare costs in the future. We account for IRMAA thresholds when timing withdrawals and conversions so you don't inadvertently trigger a premium increase.Do I need a separate tax advisor if A5 handles tax planning?
Yes — and we work best when you have one. A5 handles the forward-looking strategy: when to convert, which accounts to draw from, how to structure your holdings for tax efficiency. Your CPA handles filing and compliance. We coordinate directly with your tax preparer so the planning and the return are aligned. If you don't currently have a CPA, we can help you think through what to look for.How does equity compensation affect my tax planning as a tech employee?
RSU vesting, ESPP sales, and stock option exercises can push you into a higher federal bracket, trigger Washington's capital gains tax, and affect your Medicare premiums two years down the line. We map your equity compensation schedule in advance and coordinate the timing of sales and exercises around your other income sources to reduce your overall tax exposure and avoid bracket surprises.
