Retirement Answer Man Year-End Planning: Estimated Tax Payments
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Dec 31, 2025 As the year wraps up, reflections on the power of words take center stage. The importance of estimated tax payments is highlighted to prevent nasty surprises in retirement. Listeners share corporate jargon they'd love to retire. Mick and Patty discuss enriching experiences in fitness and travel, emphasizing life's meaning in retirement. Roger introduces a unique practice of choosing a guiding word for 2026, sharing inspiring words from listeners, and reveals his own choice that embraces danger and change.
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Make The Q4 Estimated Tax Payment
- Forecast your Q4 tax and consider the January 15 estimated payment to avoid surprises and penalties.
- Use the IRS safe harbor (pay 100% of prior year tax, or 110% if AGI > $150,000) to prevent underpayment penalties.
Why Retirees Get Taxed By Surprise
- Retirees often face tax surprises because retirement income isn't subject to payroll withholding.
- Estimated payments exist to replicate payroll withholding and reduce shock at filing time.
Collect Forms And Automate Withholding
- Gather SSA-1099, 1099s and year-end account statements to estimate taxable income for estimated payments.
- Set up federal (and state) withholding on Social Security, IRA distributions, and pensions to automate tax payments.