Avoid Tax Pitfalls Before April 15th: A Pre-Retiree Checklist

As April 15th approaches, many people focus only on filing their tax return and moving on. But for Californians nearing retirement, this deadline is a crucial checkpoint to review last year’s financial decisions and see if any adjustments can be made before the window closes.

This moment matters because the choices you make—or overlook—can influence future income, tax exposure, and flexibility in retirement. A short review now may reveal opportunities or prevent issues that become harder to address later.

This checklist from Bulman Wealth Group highlights key tax-related areas pre-retirees should review before tax day.

Check Retirement Contribution Timing

One of the most important areas to review before filing your taxes is whether retirement contributions for the prior tax year were completed as intended.

April Filing Deadline Contributions

You can generally make Traditional and Roth IRA contributions for the prior year up until the tax filing deadline. For self-employed individuals, this review may also include SEP IRAs and Solo 401(k)s, which have specific timing rules based on business income and filing status.

Similarly, Health Savings Account (HSA) contributions for the previous tax year are typically allowed until the tax filing deadline, so it’s important to review them before filing to avoid missing the opportunity.

After the Deadline Passes

Once tax day arrives, various contribution opportunities for that year close permanently. At that point, planning shifts toward the current year—such as adjusting deferrals to employer-sponsored plans and using catch-up contributions for those age 50 and older.

It’s also key to distinguish contributions from conversions. Roth conversions must be completed by December 31 of the tax year to count, making April a time to confirm reporting rather than initiate a conversion.

Maxing out contribution decisions will shape future retirement tax benefits in California once withdrawals begin. Confirming what was completed—and what wasn’t—helps prevent incorrect assumptions later.

RMD Deadlines: Plan for the First Withdrawal

Required Minimum Distributions often become a focal point for pre-retirees approaching their early 70s. For individuals who turn 73, the first RMD comes with a unique timing option that deserves careful review.

Your first RMD can be taken in the year you turn 73 or delayed until April 1 of the following year. While delaying may feel appealing, it can create an unintended result: two RMDs in the same calendar year. That overlap can increase taxable income and affect marginal tax brackets.

Before April 15th, it’s helpful to confirm how your first RMD fits into your overall income picture. This includes reviewing account balances, distribution calculations, and any notices from custodians.

Planning ahead allows you to consider whether taking the first distribution earlier provides a better balance across tax years. A thorough review of RMDs helps build the financial confidence that Roseville, California, households value, especially as multiple income sources begin to stack up.

Review Tax-Loss Harvesting and Asset Location

Although tax-loss harvesting isn’t something that must be completed before April 15th, the weeks leading up to tax filing are an ideal time to review how it was handled during the prior year.

Looking at year-end brokerage statements and Form 1099-Bs helps confirm whether realized losses were properly captured and applied against gains. Any unused losses may carry forward, making it important to verify they’re reflected accurately in tax reporting.

This review also opens the door to a broader discussion around investment location—meaning which assets are held in which types of accounts. While this isn’t a filing deadline issue, it’s typically easier to evaluate after reviewing the tax impact of dividends, interest, and realized gains.

Assets that generate higher ongoing taxable income may behave differently depending on whether they’re held in taxable, tax-deferred, or tax-free accounts. Reviewing how assets are positioned can help reduce avoidable annual taxation and make future withdrawals more manageable.

Addressing these items while tax details are fresh can provide a clearer picture for your retirement planning in Roseville, CA, heading into the next year.

Health Insurance Premiums: What May Be Deductible

Medical expenses are a key item for review before filing. Health insurance and qualified long-term care insurance premiums may be deductible, but the rules vary based on employment status and how you file your return.

For employees, these premiums may be included with itemized medical expenses. Under both federal and California rules, only the portion of total qualified medical expenses that exceeds 7.5% of adjusted gross income may be deducted. Also, confirm whether premiums were paid with pre-tax dollars, as those amounts can’t be deducted again.

Self-employed individuals often have more flexible options. In many cases, health insurance and qualified long-term care insurance premiums may be deducted as an adjustment to income without itemizing. Eligibility depends on factors such as having net business income and not being eligible for an employer-sponsored plan during the same period. 

Long-term care insurance premiums are also subject to age-based annual limits and must be federally tax-qualified under HIPAA.

Reviewing these details before filing helps confirm deductions were handled correctly and contributes to better healthcare and long-term care planning in California.

Review Your Situation With an Advisor

As April 15th approaches, these checklist items begin to intersect. Contributions can affect future distributions, RMD timing influences income levels, investment placement impacts annual taxes, and healthcare costs influence withdrawal decisions.

Bulman Wealth Group’s advisors help clients assess how these elements work together, rather than considering them individually.

A brief review before filing may help clarify what was completed, what should be adjusted going forward, and where additional planning may be worthwhile.

Contact us today for a free consultation with a Bulman financial advisor in Roseville, California.

Frequently Asked Questions

Why Is April 15th Important Beyond Filing Taxes?

It’s often the last opportunity to complete or confirm certain prior-year contributions and deductions before those windows close permanently.

Should Pre-Retirees Review RMD Timing Before the First Withdrawal?

Yes. The timing of your first RMD can affect taxable income across multiple years, especially if two distributions occur in the same calendar year.

Do Healthcare Costs Really Affect Retirement Tax Planning?

They can. Premiums, out-of-pocket expenses, and long-term care costs can all influence which accounts you withdraw from and how you report your income over time.