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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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.
Fix Late Payments And Plan For 2026
- If you missed earlier quarters, use the safe-harbor quarter amount or wait until filing but prepare for penalties; plan better for next year.
- Set up withholding or quarterly payments for 2026 to avoid repeating the surprise and interest charges.