Year-End Retirement Tax Checklist for Chadds Ford and Chester County Households (2026)

Before December 31, 2026, retirees and near-retirees should do four things: take any required minimum distribution (RMD), decide whether a Roth conversion fits this year's tax bracket, see whether the new senior deduction applies, and review how Social Security, pensions and withdrawals fit together. Anything meant to change your 2026 tax return must be completed by December 31. It cannot be done retroactively when you file.

As a financial advisor in Chadds Ford, PA, we walk clients through this list. Here is how each item works.

When is the 2026 RMD deadline?

If you are 73 or older, you generally must take your required minimum distribution from traditional IRAs and most workplace plans by December 31, 2026. If you were born in 1960 or later, RMDs start at 75. Your first RMD can wait until April 1 of the following year, but then you take two distributions in one tax year, which can push you into a higher bracket.

Missing an RMD costs 25% of the amount you should have withdrawn, reduced to 10% if you correct it within two years. If you give to charity, a qualified charitable distribution (QCD) is available from age 70½. The money goes directly from your IRA to the charity, can count toward your RMD, and must be completed by December 31.

Should I do a Roth conversion before year end?

A Roth conversion moves money from a traditional account to a Roth account, and the converted amount is generally taxable income in the year you do it. To affect your 2026 return, it must be completed by December 31. The real question is whether this is a good year to pay that tax.

Years with lower income, such as the early years of retirement before RMDs and Social Security begin, are often better candidates. A conversion also raises your income for other purposes, including Medicare premium surcharges (IRMAA), which are based on your tax return from two years earlier.

What is the senior deduction for 2026?

For tax years 2025 through 2028, taxpayers 65 or older can claim an additional deduction of up to $6,000 per person, or $12,000 for a married couple filing jointly when both qualify. It begins to phase out when modified adjusted gross income exceeds $75,000 for single filers or $150,000 for joint filers, and you can claim it whether you itemize or take the standard deduction.

Because a Roth conversion or a large withdrawal raises your modified adjusted gross income, it can shrink this deduction. That is one reason to coordinate these decisions instead of making them one at a time.

How do Social Security, pensions and withdrawals fit together?

Each income source is taxed differently, and a decision about one changes the result of another. Social Security benefits rise 3.6% in January 2027, about $75 a month for the average retired worker, which is a good prompt to re-check your income plan. A written withdrawal order, covering which accounts you draw from first and why, is a core part of retirement income planning.

What should I do first?

1. Check each IRA and workplace plan for a 2026 RMD and confirm it is complete.
2. Estimate your 2026 taxable income and see how much room you have in your current bracket.
3. Ask your CPA whether a Roth conversion or the senior deduction changes your numbers.
4. Book a planning conversation before the holidays, since December calendars fill quickly.

Frequently asked questions

Do I have to take an RMD in the year I turn 73? Yes, the requirement starts that year, but you may delay the first RMD until April 1 of the next year. Delaying means taking two distributions in one tax year.

What is the penalty for missing an RMD? The penalty is 25% of the amount you should have withdrawn. It drops to 10% if you correct the mistake within two years.

Is a Roth conversion taxable? Generally yes. The converted amount is treated as taxable income in the year of the conversion.

Does Brandywine Financial Advisors work with clients in Glen Mills, Kennett Square and West Chester? Yes. Our office is in Chadds Ford, and as a retirement planner and financial planner we serve clients in Glen Mills, Kennett Square, West Chester, and across the US in person, by phone or by video.

Want help turning this checklist into a plan? Schedule a call with Jeff and the team at Brandywine at 610-624-1665.

Sources

1. ^{Internal Revenue Service. "Retirement plan and IRA required minimum distributions FAQs." Page last reviewed January 29, 2026. https://www.irs.gov/retirement-plans/retirement-plan-and-ira-required-minimum-distributions-faqs}
2. ^{Internal Revenue Service. "Retirement topics: Required minimum distributions (RMDs)." Page last reviewed April 8, 2026. https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds}
3. ^{Internal Revenue Service. "Seniors can reduce their tax burden by donating to charity through their IRA." Tax Tip 2022-171, November 8, 2022. https://www.irs.gov/newsroom/seniors-can-reduce-their-tax-burden-by-donating-to-charity-through-their-ira}
4. ^{Internal Revenue Service. "Retirement plans FAQs regarding IRAs." https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-iras}
5. ^{Internal Revenue Service. "Check your eligibility for the new enhanced deduction for seniors." February 27, 2026, last reviewed September 21, 2026. https://www.irs.gov/newsroom/check-your-eligibility-for-the-new-enhanced-deduction-for-seniors}
6. ^{Internal Revenue Service. "2026 filing season updates and resources for seniors." Tax Tip 2026-14, February 19, 2026. https://www.irs.gov/newsroom/2026-filing-season-updates-and-resources-for-seniors}
7. ^{Social Security Administration. "HI 01101.030 IRMAA Determination Process." Program Operations Manual System, July 19, 2012. https://secure.ssa.gov/poms.nsf/lnx/0601101030}
8. ^{Social Security Administration. "Social Security Announces 3.6 Percent Benefit Increase for 2027." Press release, October 14, 2026. https://www.ssa.gov/news/en/press/releases/2026-10-14.html}