The Tax Torpedo That Hits Early Retirees at 65

Most early retirees plan for the years before Social Security and Required Minimum Distributions kick in. But what happens when those programs actually start? Lucas and Luna unpack the 'tax torpedo' — a phenomenon where ordinary income from Social Security and RMDs pushes retirees into higher tax brackets and even triggers Medicare surcharges. Using the example of a couple named Jen and Mark — who retired at 52 with a $1.6 million IRA and a paid-off house — they walk through how pro-Roth conversion strategies can shave tens of thousands off lifetime taxes. They also discuss the IRS Form 5329 for excess contributions, the Net Investment Income Tax, and why waiting until 70 to convert is often a mistake. No jargon, no fluff: just a concrete retirement tax scenario that could save listeners five figures if they act before age 59 and a half. #TaxTorpedo #EarlyRetirement #RothConversion #SocialSecurity #RequiredMinimumDistributions #MedicareSurcharge #IRMAATiers #NetInvestmentIncomeTax #Form5329 #IRS #RetirementPlanning #FinancialIndependence #FIRE #FexingoBusiness #BusinessPodcast #PersonalFinance #RetirementTaxes #ProRothConversion Keep every episode free: buymeacoffee.com/fexingo