One of the biggest financial challenges you can face – both before and after you retire – is income taxes. Depending on your tax filing status and bracket, your net spendable income may be significantly reduced.

This is particularly true if the bulk of your retirement savings is in “traditional” FERS (Federal Employees Retirement System) or FRS (Florida Retirement System) plans where none of the principal has yet been subject to taxation. Plus, if income tax rates rise in the future, Uncle Sam will receive even more of your money. 


Top Federal Income Tax Rates 1913 – 2021

Year Rate Year Rate
2018-2021 37 1950 84.36
2013-2017 39.6 1948-1949 82.13
2003-2012 35 1946-1947 86.45
2002 38.6 1944-1945 94
2001 39.1 1942-1943 88
1993-2000 39.6 1941 81
1991-1992 31 1940 81.1
1988-1990 28 1936-1939 79
1987 38.5 1932-1935 63
1982-1986 50 1930-1931 25
1981 69.125 1929 24
1971-1980 70 1925-1928 25
1970 71.75 1924 46
1969 77 1923 43.5
1968 75.25 1922 58
1965-1967 70 1919-1921 73
1964 77 1918 77
1954-1963 91 1917 67
1952-1953 92 1916 15
1951 91 1913-1915 7

Source: Inside Gov (


Over the past century or so, the top federal income tax rate has been 70% or more in forty-nine years, and in some years, it has been 90% or more. If income taxes rise to this level in the future, would you be able to live comfortably? 

If you’re like most people, the answer to this question is no. 

While there is no way to control income tax rates, there are strategies that you can put in place to help with reducing – or possibly even eliminating – taxes on your income in retirement. This can better ensure that you can purchase the items and services that you need.  

If you would like more information on tax-reduction strategies in retirement, please reach out to us. There is no cost or obligation! You can contact us at 813-926-9909 or email us at We look forward to talking with you. 

Tax Reduction Strategies

Even if the bulk of your retirement savings is invested in taxable accounts – such as a traditional IRA and/or employer-sponsored FERS (Federal Employee Retirement System) plan – there may be ways that you can reduce or eliminate the taxes that you owe when these funds are accessed in retirement. This, in turn, can give you more money to spend on the items and services you need and want in retirement.

Some of these strategies could include:

  • Keeping other income below a certain level if you’re receiving Social Security benefits

  • Converting traditional retirement assets to a Roth IRA

  • Taking advantage of tax deductions or credits

Because everyone has different scenarios regarding short- and long-term financial objectives and risk tolerance and time frame until retirement, not all tax-reduction strategies will work for all investors and retirees alike.

It’s essential to talk over your options with a financial professional who is well-versed in creating income-generation strategies that can also keep your income tax liability to a minimum.

If you would like more details on tax-reduction strategies in retirement, you can reach out to us directly by calling 813-926-9909 or via email at We look forward to answering any of the tax and retirement income questions that you have.