In Retirement, More Spending Can Lead to Higher Taxes

In Retirement, More Spending Can Lead to Higher Taxes

One extra withdrawal from your IRA can set off a chain reaction of higher taxes and even surprise Medicare surcharges — for years to come.

Fidelity warns IRA trusts face surprisingly steep taxes

In 2026, a trust reaches the top 37% federal income tax bracket once taxable income exceeds $16,000. An unmarried individual does not hit that same rate until income passes $640,600, the IRS confirmed in its 2026 bracket tables. That 40-to-1…