Five Tax Planning Tips for Retired Tech Professionals

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Published on November 09, 2025 by David Lim, CPA

Does the thought of taxes in retirement make you uneasy? Between new tax laws and the high cost of living in the Bay Area, many retirees feel anxious about getting it right. The good news is a few key moves can help you worry less and enjoy retirement more like play pickleball, golf, or other activities that you enjoy.

Take comfort in new tax breaks for seniors

Thanks to new federal rules, nearly 90% of Social Security recipients won’t owe federal tax on those benefits. The standard deduction for 2025 increased to $15,750 (single) or $31,500 (married), with an extra $6,000 for those 65+. California still doesn’t tax Social Security. These changes can help retirees keep more of their income.

Keep your RMDs under control

You now have until age 73 to begin required minimum distributions (RMDs), and penalties for missing them have been reduced. If you don’t need the funds, consider a Qualified Charitable Distribution (QCD) to satisfy your RMD without paying tax on it. QCDs also help lower your taxable income, which may reduce Medicare premiums. RMDs no longer have to be stressful.

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Don’t let capital gains catch you off guard

Selling appreciated stock or real estate can create tax spikes, but good timing can prevent that. Spread large gains over multiple years, and consider donating appreciated stock to avoid capital gains altogether. You can also use tax-loss harvesting to offset gains. With planning, you stay in control.

California isn’t all downside for retirees

Social Security is not taxed by California, and Prop 13 helps keep property taxes low. If you downsize, Prop 19 lets you transfer your old tax base to a new home. California also has no estate or inheritance tax. These benefits can outweigh some of the state’s higher income taxes.

Get a professional on your side

Tax rules change often, and a CPA can help you avoid costly mistakes. A good advisor can walk you through Roth conversions, stock sales, or charitable planning. More than that, they provide peace of mind. Let a professional handle the tax code so you can focus on enjoying retirement.

This article is for general educational purposes only and does not constitute tax advice. Tax laws change frequently, and each situation is unique. Consult a qualified tax professional before acting on any information in this article.

David L

David is a California-licensed CPA (MSA) and U.S. Army veteran who served as a medic before shifting into public accounting. He helps landlords, small business owners, and tech professionals save on taxes through clear, honest advice. Outside work, he enjoys soccer with his sons, Toastmasters, and a good pickleball match.