[Editor's note: This article was originally published in 2012, but has since been edited for comprehensiveness and accuracy.]
Your 50s and 60s come with some real tax perks. The IRS lets you save more, deduct more and, in some cases, pay nothing at all on investment gains. But the rules shift as you age, and several changed again for 2026.
Here are seven tips worth knowing, whether retirement is 15 years away or already here.
Once you turn 50, you can put extra money into your workplace retirement plan. For 2026, the regular 401(k), 403(b) and 457 limit is $24,500, and people 50 and older can add $8,000 on top, for $32,500 total. If you're 60, 61, 62 or 63 this year, your catch-up is $11,250 instead, for a total of $35,750.
IRAs get a catch-up too: $1,100 on top of the $7,500 limit, for $8,600 in all.
One new wrinkle: if you earned more than $150,000 in wages from your employer in 2025, your 2026 catch-up contributions to that employer's plan have to go in as Roth (after-tax) money. You still get to save it. You just pay the tax now instead of later.
If you have a high-deductible health plan, a health savings account is one of the best deals in the tax code. The money goes in tax-free, grows tax-free and comes out tax-free for medical costs. For 2026 you can contribute $4,400 for self-only coverage or $8,750 for family coverage, plus a $1,000 catch-up once you're 55.
Here's the catch: you can't contribute once you're enrolled in Medicare. And if you sign up for Social Security after 65, Medicare Part A can be backdated up to six months, so plan to stop HSA contributions about six months before you apply. You can keep spending what you've already saved.
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At 65, your standard deduction grows. For 2026, a single filer gets $16,100 plus an extra $2,050. Married couples filing jointly get $32,200 plus $1,650 for each spouse who's 65 or older.
On top of that, the One Big Beautiful Bill Act added a temporary senior deduction of up to $6,000 per person 65 or older for tax years 2025 through 2028. You can take it whether or not you itemize. It starts shrinking once your modified AGI passes $75,000 ($150,000 for joint filers), and married couples must file jointly to claim it.
Many retirees pay no tax on their Social Security, but plenty do. To find out where you stand, add up your AGI, any tax-free interest and half of your benefits. If that total is under $25,000 ($32,000 for joint filers), your benefits aren't taxed. Above that, up to 50% can be taxable, and above $34,000 ($44,000 joint), up to 85% can be. Nobody pays tax on all of their benefits.
These thresholds have never been adjusted for inflation, so more retirees cross them every year. Timing your IRA withdrawals and Roth conversions can help keep you under them.
If you've held an investment for more than a year, the gain may be taxed at 0%. For 2026, that applies as long as your taxable income, including the gain, is $49,450 or less for single filers or $98,900 or less for joint filers.
The early years of retirement, before RMDs and Social Security kick in, are often the best window. You can sell appreciated stock or rebalance your portfolio and owe no federal tax on gains that fit under the line.
If you're helping an aging parent, you may be able to deduct the medical expenses you pay for them. The key test is support: you have to provide more than half of your parent's total support for the year. Even if their income is too high for you to claim them as a dependent, the medical deduction can still apply.
There are two limits. You have to itemize, and only the part of your total medical costs above 7.5% of your AGI counts. Assisted living or nursing home costs can qualify when the main reason for the stay is medical care.
>> Free tax guides for retirees and families. Get plain-English guides on deductions, credits and dealing with the IRS. Browse our free guides →
Required minimum distributions generally start at 73, or 75 if you were born in 1960 or later. Missing one is costly: a 25% penalty on the amount you should have taken out, cut to 10% if you fix it quickly. Our guide to audit risks for retirees covers other mistakes that draw IRS attention.
If you give to charity and you're 70½ or older, look into a qualified charitable distribution (QCD). You can send up to $111,000 in 2026 straight from your IRA to a charity. It counts toward your RMD and stays out of your taxable income, which can also help with tips 3, 4 and 5.
The years around retirement are when good tax planning pays off most. A few moves, like timing withdrawals, using catch-ups and giving through a QCD, can save you thousands a year. And if you have back taxes or unfiled returns from earlier years, it's much easier to clear them up before you retire, while you still have a paycheck.
>> Planning for retirement, or already there? Talk with a Top Tax Defenders tax professional in a free, confidential consultation. Schedule your free consultation → or call (866) 237-6545.
You can start in the calendar year you turn 50. For 2026, that means an extra $8,000 in a 401(k), 403(b) or 457 plan and an extra $1,100 in an IRA. If you're 60 to 63, the workplace plan catch-up rises to $11,250.
It can be at any age. It depends on your combined income: your AGI, plus tax-free interest, plus half of your benefits. Above $25,000 ($32,000 for joint filers), up to 50% of your benefits can be taxable, and above $34,000 ($44,000 for joint filers), up to 85% can be.
Anyone 65 or older by the end of the tax year with a valid Social Security number, for tax years 2025 through 2028. Married couples must file jointly. The deduction phases out once modified AGI passes $75,000 for single filers or $150,000 for joint filers.
No. Once you enroll in any part of Medicare, you can no longer contribute to an HSA. You can still use the money already in your account for qualified medical expenses, tax-free.
Yes, if you provide more than half of your parent's total support for the year. You have to itemize, and only total medical expenses above 7.5% of your AGI are deductible.
Long-term capital gains are taxed at 0% when your taxable income, including the gain, is $49,450 or less for single filers or $98,900 or less for married couples filing jointly.