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Core Inflation Just Hit a 3-Year High. For One Retired Couple, the Frozen Tax Thresholds Turn That Into a Stealth Tax Increase.
Key takeaways
- For One Retired Couple, the Frozen Tax Thresholds Turn That Into a Stealth Tax Increase.
- Traditional IRA withdrawals count dollar-for-dollar toward provisional income, while Roth and taxable brokerage withdrawals do not, making withdrawal sequencing critical for retirees.
- Required minimum distributions beginning at 73 can force provisional income past the 85% threshold, but early Roth conversions in lower-income years can reduce that future burden.
Core Inflation Just Hit a 3-Year High. For One Retired Couple, the Frozen Tax Thresholds Turn That Into a Stealth Tax Increase. Gerelyn Terzo Wed, July 1, 2026 at 5:04 PM GMT+7 6 min read Quick Read Social Security tax thresholds of $32,000 and $44,000 for married filers, frozen since 1984, let inflation silently push retirees into owing taxes on up to 85% of benefits.
Traditional IRA withdrawals count dollar-for-dollar toward provisional income, while Roth and taxable brokerage withdrawals do not, making withdrawal sequencing critical for retirees.
Required minimum distributions beginning at 73 can force provisional income past the 85% threshold, but early Roth conversions in lower-income years can reduce that future burden.
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