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Question

Is it worth realizing capital gains during a low-income retirement year?

Answer

It can be. In 2026, married couples filing jointly with taxable income up to $98,900 pay 0% federal tax on long-term capital gains. If your income is low during the pre-RMD years, you may be able to sell appreciated assets and reset your cost basis without triggering a federal tax bill. This strategy can work best when coordinated with your overall retirement tax plan.

Related FAQs

Should I do a Roth conversion before required minimum distributions begin?

How does a Roth conversion work during the years before required minimum distributions (RMDs)?

What is the retirement tax gap window?
Retirement Tax Planning Asset Protection Retirement Planning Social Security Tax Basics Tax Tips & Tricks Early Retirement Generational Wealth Year-Round Tax Planning FAQs
Last Updated Oct. 2, 2026
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