Tax strategy and tax filing for women in transition

Written and reviewed by Dr. Pat Pachciarz® · Updated October 3, 2026 · Educational, not individual advice.

Here are the tax questions that come up most often in those years, with the IRS rules behind them.

What should I know first?

• A life change usually changes your filing status.
• Lower-income years can be a window for Roth conversions.
• Required minimum distributions now begin at 73 for most people reaching that age.
• New income without withholding may require estimated tax payments.

Common questions

What's the difference between tax planning and tax filing?

Tax filing reports last year's income on your return. Tax planning happens before year-end and decides the timing of income, withdrawals, conversions and deductions. Coordinated, they let your return reflect a plan instead of surprises.

Sources: IRS Publication 501: Dependents, Standard Deduction, and Filing Information

When might a Roth conversion make sense?

Often in lower-income years, such as after you stop working but before Social Security and required distributions start. The converted amount is taxable income in the year of conversion. Illinois generally doesn't tax a traditional-to-Roth IRA conversion.

Sources: IRS Publication 590-A: Contributions to IRAs · Illinois Department of Revenue: Social Security and retirement income

When do required minimum distributions start?

For most people reaching that age now, required minimum distributions from traditional IRAs and workplace plans start at 73. Roth IRAs have no required distributions while the original owner is alive. Missing one can trigger an excise tax.

Sources: IRS: Required minimum distribution FAQs · IRS Publication 590-B: Distributions from IRAs

Do I need to make estimated tax payments after a life change?

Possibly. If new income, such as IRA withdrawals, a taxable inheritance account, or self-employment, doesn't have enough tax withheld, you may need quarterly estimated payments to avoid an underpayment penalty.

Sources: IRS Topic 306: Penalty for underpayment of estimated tax

How does DAITT® help with this?

Every engagement moves through the five DAITT® disciplines in order, so the tax, legal and investment pieces are decided together.

1. Tax Strategy and Tax Filing

   Project this year's taxes before the year ends, not after.

2. Advanced Planning

   Time income and withdrawals around your brackets.

3. Private Wealth Investments

   Place investments where they're taxed least.

4. Trust Planning

   Align beneficiaries and trusts with the tax plan.

5. Debt Optimization

   Weigh paying debt against keeping tax-advantaged savings.

How do we show our value?

We explicitly show you our value, in writing, before you hire us. If we can't find it or explicitly show you, you don't pay.

Book a Clarity Call or see your Leak Score

Sources

• IRS Publication 501: Dependents, Standard Deduction, and Filing Information
• IRS Publication 590-A: Contributions to IRAs
• Illinois Department of Revenue: Social Security and retirement income
• IRS: Required minimum distribution FAQs
• IRS Publication 590-B: Distributions from IRAs
• IRS Topic 306: Penalty for underpayment of estimated tax

More answers

• Caregiving for aging parents: money, taxes and protecting your own future
• Trust planning and family governance: the trust, the assets and bringing the kids in
• Inheritance taxes: do I owe money on what I got left?
• Widowhood: money decisions in the first year after losing a spouse
• Divorce financial planning: the money questions women ask first
• QDRO and QILDRO: dividing retirement plans in an Illinois divorce
• Pre-retirement planning at 55: trust planning first, then income, health care and taxes
• Social Security for women: retirement, spousal, survivor and divorced-spouse benefits
• Medicare at 65: when to sign up and how it fits your retirement plan
• drpatclarity.com home

Also see drpat.co and the Pinnacle FAQ.