Treasure Coast Retirement Planning · Stuart, FL
The Treasure Coast Retirement Tax Guide:
Keep More of What You Earned
If you’re 55–70 and living in Stuart, Hobe Sound, Jensen Beach, Port St. Lucie, or Vero Beach, this Treasure Coast retirement guide delivers the concrete tax strategies, Social Security timing decisions, Medicare enrollment facts, and estate-planning insights you need to retire with confidence — and keep far more of your money working for you.
WRITTEN BY THOMAS DAVIES, CFS · 30+ YEARS EXPERIENCE · FEE-BASED FIDUCIARY · STUART, FLORIDA
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Florida Tax Advantages
Why Florida Is One of the Best States to Retire — Tax-Wise
Florida has zero state income tax — full stop. That means your Social Security benefits, pension income, IRA withdrawals, 401(k) distributions, and investment dividends are never taxed at the state level. For a retiree drawing $80,000 per year in retirement income, this single advantage can save $4,000–$6,000 annually compared to high-tax states like New York, California, or Illinois.
Florida Estate Tax: Florida also imposes no state estate tax. When your estate passes to heirs, the state takes nothing. The only estate tax exposure is federal, which currently exempts up to $13.61 million per individual (2024). For the vast majority of Treasure Coast retirees, this means estate tax is simply not a concern at the state level.
Homestead Exemption: Florida’s Homestead Exemption removes $50,000 from the assessed value of your primary residence for property tax purposes. The first $25,000 exemption applies to all property taxes; the second $25,000 applies to non-school taxes. On a home assessed at $400,000 in Martin County, this exemption alone can reduce your annual property tax bill by $700–$1,100.
Save Our Homes Cap: Once you have Homestead, Florida’s Save Our Homes provision caps the annual increase in your assessed value at 3% or the CPI increase — whichever is lower. In a hot real estate market like the Treasure Coast, this protection can save long-term homeowners tens of thousands of dollars over a decade. Learn more at the Florida Department of Revenue Homestead Exemptions page.
Florida vs. High-Tax States:
Annual Retirement Tax Savings
State Income Tax on $80K Income
Florida: $0
New York: ~$4,800 · California: ~$5,200
State Estate Tax
Florida: $0
Massachusetts: up to 16% on estates over $2M
Property Tax (Martin County avg.)
~0.95% effective rate
With Homestead: even lower on primary residences
Social Security Strategy
Social Security Timing: The Decision That Can Mean $100,000+ Difference
For most Treasure Coast retirees, Social Security is their single largest lifetime income stream — and the timing decision is irreversible. Taking benefits early at 62 locks in a permanent reduction of up to 30% compared to your Full Retirement Age (FRA). Waiting until 70 earns delayed credits worth 8% per year. The math matters enormously.
| Claiming Age | Monthly Benefit (based on $2,000/mo FRA benefit) |
Annual Benefit | Break-Even Age vs. claiming at 62 |
|---|---|---|---|
| Age 62 | $1,400 (–30%) | $16,800 | — |
| Age 67 (FRA) | $2,000 | $24,000 | ~Age 78 |
| Age 70 | $2,480 (+24%) | $29,760 | ~Age 80 |
Spousal Benefits: The Often-Missed Opportunity
Spousal benefits can equal up to 50% of the higher earner’s FRA benefit. For a couple where one spouse earned significantly less, coordinating the claiming strategy between partners can add $50,000–$150,000 in lifetime income. A common strategy: the lower earner claims first for income, while the higher earner delays to 70 to maximize the survivor benefit. Visit SSA.gov to review your personal earnings record.
Social Security & Federal Taxes
Even though Florida doesn’t tax Social Security, the federal government may. If your combined income (adjusted gross income + nontaxable interest + half of SS benefits) exceeds $25,000 (single) or $32,000 (married filing jointly), up to 50% of benefits become taxable. Above $34,000/$44,000, up to 85% can be taxable. Managing your other retirement income sources is key to minimizing this exposure — which is where a coordinated withdrawal strategy becomes critical.
Required Minimum Distributions
RMDs at 73: The Tax Bomb Many Retirees Don’t See Coming
Under the SECURE 2.0 Act, the Required Minimum Distribution age moved to 73 (and will rise to 75 in 2033). If you have $800,000 in a traditional IRA at age 73, your first RMD is approximately $30,800 — and that amount is fully taxable as ordinary income. At 80, the same account balance generates even larger mandatory distributions.
The Roth Conversion Window: The years between retirement (say, 62–65) and your first RMD (73) represent a golden planning window. With lower taxable income, you may be in the 12% or 22% federal bracket. Converting traditional IRA money to Roth during this period means paying tax now at a lower rate — and enjoying tax-free growth and withdrawals for the rest of your life, with no RMDs required.
Real Example: A 64-year-old Treasure Coast couple with $600,000 in IRAs and $40,000 in annual Social Security income has room under the 22% bracket to convert $30,000–$40,000 per year to Roth, tax-efficiently. Over nine years, they could convert $270,000–$360,000, significantly reducing their future RMD burden and Medicare IRMAA exposure.
RMD Quick-Reference: Key Ages
Penalty-free IRA/401(k) withdrawals begin
Watch income — Medicare uses 2-year lookback for IRMAA
Medicare enrollment begins (enroll within 7-month window)
RMDs begin from traditional IRAs and 401(k)s
RMD age increases to 75 starting in 2033 (SECURE 2.0)
Medicare Planning
Medicare on the Treasure Coast: Parts, Costs & IRMAA Surcharges
Medicare is the backbone of healthcare for most Treasure Coast retirees, but it’s far more complex — and expensive — than most people anticipate. Missing your Initial Enrollment Period (IEP) triggers lifelong premium penalties. Income surcharges (IRMAA) can add $594–$4,782 per couple annually. And Medicare covers far less long-term care than most people believe.
| Medicare Part | What It Covers | 2024 Standard Cost | Key Watch-Out |
|---|---|---|---|
| Part A | Hospital, skilled nursing facility (limited), hospice | $0 premium (if 40+ work quarters) | $1,632 deductible per benefit period |
| Part B | Doctor visits, outpatient care, preventive services | $174.70/month (standard) | IRMAA surcharge if income > $103K (single) |
| Part C | Medicare Advantage (private plans) | Varies by plan; some $0 premium | Network restrictions; prior authorization required |
| Part D | Prescription drug coverage | Avg. ~$43/month + IRMAA possible | Late enrollment penalty: 1% per uncovered month |
| Medigap/Supplement | Covers gaps in Original Medicare (deductibles, co-pays) | $100–$350+/month depending on plan | Best purchased at 65 when guaranteed issue applies |
IRMAA: The Hidden Medicare Tax on High Earners
IRMAA (Income-Related Monthly Adjustment Amount) is a surcharge added to your Part B and Part D premiums if your income exceeds certain thresholds — based on your tax return from 2 years prior. In 2024, a married couple with income above $206,000 pays an additional $1,374+ per year combined just in Part B surcharges. A large Roth conversion, property sale, or business income in your early 60s can trigger IRMAA at 65 if not carefully managed. Read our detailed
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