Brian T. Soley, CFP®, APMATM, CLTC®, Financial Advisor & Insurance Specialist at River Prairie Wealth Partners, a private wealth advisory practice of Ameriprise Financial Services, LLC.

Retirement should be a time to enjoy the fruits of your labor – not worry about taxes. Yet, how you plan today can significantly impact how long your retirement income lasts tomorrow. At River Prairie Wealth Partners, we help clients navigate the complexities of retirement tax planning with clarity and confidence.

Here are three key strategies to consider:

1. DIVERSIFY YOUR TAX BUCKETS

Think of your retirement savings as falling into three categories: tax-deferred (like traditional IRAs and 401(k)s), tax-free (such as Roth IRAs), and taxable (brokerage accounts). Spreading your assets across these “tax buckets” gives you flexibility in retirement and can help reduce your overall tax burden. This tax diversification approach can be especially powerful when paired with strategic withdrawals.

2. TAKE ADVANTAGE OF CATCH-UP CONTRIBUTIONS

Starting at age 50, you can contribute more to your retirement accounts. In 2026, individuals can add an extra $8,000 to their 401(k) and $1,100 to their IRA. These catch-up contributions not only boost your savings but can also offer tax benefits, especially if directed to Roth accounts where qualified withdrawals are tax-free.

3. CONSIDER A ROTH IRA CONVERSION

Converting a traditional IRA to a Roth IRA may make sense if you expect to be in a higher tax bracket later or want to reduce future required minimum distributions. While you’ll pay taxes on the converted amount now, future withdrawals (if done correctly) can be tax-free*. This strategy works best if you have cash on hand to cover the tax bill and don’t need the funds for 10–15 years.

Other tools like Health Savings Accounts (HSAs), municipal bonds, and even life insurance or annuities can also play a role in building a tax-efficient retirement plan. The key is to start early and revisit your strategy regularly.

Everyone’s situation is different. Let’s talk about how these strategies might fit into your retirement plan. We’ll coordinate with your tax professional to help ensure your plan is both tax-smart and aligned with your goals.

*Withdrawals from a Roth account are tax-free as long as investors leave the money in the account for at least 5 years and are 59 1/2 or older when they take distributions or meet another qualifying event such as death or disability.

CFP Board owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER®, and CFP® (with plaque design) in the U.S.

Ameriprise Financial and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.

Ameriprise Financial cannot guarantee future financial results.

Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.

Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC.

RIVER PRAIRIE WEALTH PARTNERS

Address: 1520 Front Porch Pl., Altoona

Phone number: (715) 832-7715

riverprairiewealthpartners.com

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