Slides for a class about tax issues for older adults. Updated for 2023.

3. Street Cred
• CFP® for 38 years (since 1985)
• Financial educator for 45 years (since 1978)
• Prepared my own taxes for 50+ years
• Age 65+
• An older adult paying income taxes just like you

10. 2023 Tax Rate
Schedules
https://njaes.rutgers.edu/money/
tax-info/
https://njaes.rutgers.edu/money/
tax-info/marginal-tax-
brackets.php?2023

12. 2023 Standard
Deductions:
$13,850-Single
$15,700- Single age 65+
with $1,850 extra
$27,700- MFJ < age 65
$30,700-MFJ and both
age 65+ with +$1,500
extra @

25. Major home improvements too!

28. 1. Required Minimum Distributions
Source: Kitces.com: https://www.kitces.com/blog/secure-act-2-omnibus-2022-hr-
2954-rmd-75-529-roth-rollover-increase-qcd-student-loan-match/

29. More About RMDs
• Applies to traditional IRAs, employer DC plans, SEPs (tax-deferred)
• RBD is April 1 after the year you reach starting age (e.g., 72 or 73)
• New RMD life expectancy table started in 2022
• Divide 12/31 balance by the divisor for your age
• Examples: Age 73 divisor (revised 2022 table) of 26.5
• $10,000 balance: $10,000 ÷ 26.5 = $378 (rounded)
• $100,000 balance: $100,000 ÷ 26.5 = $3,774 (rounded)
• $1,000,000 balance: $1,000,000 ÷ 26.5 = $37,736 (rounded)

30. Uniform Lifetime Table

31. RMD Withdrawal Percentage Keeps Growing!
RMD Percentage of Account Balance increases with
age: 3.65% at 72
3.77% at 73
4.96% at 80
6.25% at 85
8.20% at 90
11.24% at 95
15.63% at 100
28.58% at 110
34.49% at 115
50% at 120
Source:
AAII Journal:
https://www.aaii
.com/journal/arti
cle/strategies-
for-managing-
required-
minimum-
distributions

33. 2023 Standard Deductions:
$13,850-Single
$15,700- Single age 65+ with $1,850 extra
$27,700- MFJ < age 65
$30,700-MFJ and both age 65+ with +$1,500 extra @

36. Tax-Deferred Employer Savings Plans- Extra $7,500
Catch-Up (up to $30,000 total)
Individual Retirement Accounts-Extra $1,000
Catch-Up (up to $7,500 total)

37. Source: Medicare Hero:
https://medicarehero.com/cost-of-
medicare-coverage/

43. 2023 Figures:
Single and age 65+: $14,700 vs. $12,950 under age 65
If both are age 65+: $28,700 vs. $25,900 if both under age 65
If one is <65 and the other age 65+: $27,300 Source:
https://www.nerdwall
et.com/article/taxes/
do-i-need-to-file-a-
tax-return#