Most couples spend years planning for retirement together—but few plan for what happens after one spouse passes away. The result? A little-known but significant issue called the widow’s tax, which can quietly erode your surviving spouse’s financial stability.
In this post, we’ll explain what the widow’s tax is, how it can increase your partner’s future tax burden, and three smart steps you can take right now to protect your family’s long-term retirement plan.
What Is the Widow’s Tax?
The widow’s tax isn’t an official IRS term, but it’s a real and costly phenomenon. When one spouse dies, the surviving spouse shifts from “married filing jointly” to “single” tax status. That change comes with:
- A smaller standard deduction
- Compressed tax brackets
- Potentially higher required minimum distributions (RMDs)
The end result? A surviving spouse may pay significantly more in taxes—even if their income hasn’t changed much.
Let’s say you and your spouse earn $120,000 in retirement income each year. As a married couple, you get a $30,000 standard deduction and land in the 12% tax bracket. But if one of you passes away, the deduction drops to $15,000, and the same income could push the survivor into the 22% or even 24% bracket.
That’s the widow’s tax: higher taxes at the worst possible time.
1. Use Roth Conversions Strategically—With the Surviving Spouse in Mind
One of the most powerful ways to protect a surviving spouse is through a proactive Roth conversion strategy—but not just any Roth strategy. Many retirees only evaluate Roth conversions based on their current tax bracket, without considering how things will change after one spouse passes.
Let’s walk through an example using a hypothetical couple, Luke and Mary, who have $2.7 million saved for retirement. While they’re both alive, projections show their taxable income keeps them in the 22–24% bracket. But when we adjust for Luke passing early, Mary jumps into the 32–35% brackets due to smaller deductions and large RMDs—despite her expenses going down.
Here’s the key takeaway: a Roth conversion strategy should be evaluated not only for your joint lifetime but also for the years after one spouse is gone. Modeling this out can reveal the long-term benefit of converting more aggressively earlier—especially when you’re in a lower tax bracket.
2. Maximize Social Security for the Higher-Earning Spouse
If one of you passes, the surviving spouse typically receives the higher of your two Social Security benefits. That makes maximizing at least one benefit—typically the higher earner’s—a smart move.
Delaying Social Security until age 70 boosts that benefit by up to 8% per year after full retirement age. For a surviving spouse, that higher amount becomes a reliable, tax-efficient income floor.
Why does that matter?
- Social Security is only up to 85% taxable at the federal level
- Many states don’t tax it at all
- It helps offset the widow’s tax by reducing withdrawals from other, more heavily taxed accounts
So, even if delaying benefits feels uncomfortable, it’s often a gift to your future widow(er).
3. Understand the IRS’s Different RMD Tables—and Use Them Wisely
Most people assume there’s only one way to calculate required minimum distributions. In reality, there are three IRS life expectancy tables, and knowing when and how to use them can reduce your spouse’s tax burden.
The Three Tables:
- Uniform Lifetime Table: Used by most retirees once they reach RMD age
- Single Life Expectancy Table: Typically used for inherited IRAs from non-spouses, but there are exceptions
- Joint and Last Survivor Table: Used when one spouse is 10+ years younger than the other
Why it matters: these tables affect how much you’re required to withdraw—and therefore, how much you’re taxed.
For example, if one spouse inherits the other’s IRA and is under age 59½, keeping the account as an inherited IRA and using the single life table can allow for penalty-free access. Or, if a much older spouse inherits from a younger one, they may delay RMDs longer by using the single table strategically.
In another case, if you’re married and your spouse is 10+ years younger, using the joint table can reduce RMD amounts while you’re both living—helping preserve assets for the future.
Don’t Wait: Model These Scenarios Now
Many people think of tax planning as something you do at year-end or just before filing. But these strategies require multi-year thinking, especially when protecting a surviving spouse.
Here’s what to ask your advisor—or consider modeling with a tool like Retirement Planning Academy:
- How do our tax brackets change if one of us passes away early?
- Are we converting enough (or too much) to Roth while we’re both alive?
- Should one of us delay Social Security to provide long-term protection?
- Which RMD table would apply in different inheritance scenarios?
The more you prepare now, the better your family’s outcome will be later.
True Wealth is About More Than Taxes
Money is just one piece of a well-lived retirement. But taxes can quietly erode everything you’ve worked for, especially when a surviving spouse is left to deal with the consequences alone.
Implementing these three strategies—smart Roth conversions, a maximized Social Security benefit, and optimized RMD planning—can help safeguard your partner’s financial independence and peace of mind.
Planning for tomorrow means protecting the ones we love. The widow’s tax is real, but with the right moves today, it doesn’t have to be inevitable.
If you want to see how the widow’s tax could affect your plan—and what steps you can take now to protect your future—start a conversation with us at rootfinancial.com/start-here.
The information presented is for educational and informational purposes only and should not be construed as personalized investment or financial advice. The content discusses general retirement planning strategies and is not intended to recommend any specific course of action for any individual.
Social Security claiming strategies involve a number of variables, including life expectancy, portfolio returns, tax considerations, and personal circumstances. Decisions regarding Social Security benefits should be made in consultation with your financial advisor, taking into account your full financial picture.
Examples provided are hypothetical and for illustrative purposes only. They do not reflect any specific client situation and should not be relied upon for investment decision-making. Past performance of investments is not indicative of future results. All investing involves risk, including the potential loss of principal.
Root Financial Partners, LLC provides tax planning as part of its financial planning services. However, we do not provide tax preparation services, represent clients before the IRS, or offer legal advice.
Clients should consult their CPA or attorney before implementing any tax or legal strategies discussed. Nothing in this content should be interpreted as a recommendation to take a specific tax position or legal action.
This content may include discussions around advanced financial planning strategies such as Roth conversions, backdoor Roth IRAs, tax loss harvesting, charitable giving, estate planning tactics, or Social Security claiming strategies. These concepts are general in nature and are not personalized advice. Actions related to these strategies may trigger tax consequences or legal implications. Always consult with your CPA or attorney to assess suitability based on your personal financial circumstances.
Suitability for these strategies depends on your individual tax situation, income, age, investment profile, estate plan, and other factors. Actions related to these strategies may trigger tax consequences or legal implications. Always consult with your CPA or attorney to assess suitability based on your personal financial circumstances.