Retirement planning in Boise

It's usually a math question before it's an age question. Compare what you expect to spend each year with the income you can count on — Social Security, any pension, and withdrawals from your savings — and check that the money lasts through a market drop, a long life, and healthcare costs you can't predict. Most people can retire earlier than they assume, and later than they hope, so it's worth running the numbers rather than guessing.

You can claim as early as 62, but the monthly benefit grows the longer you wait. For anyone born in 1960 or later, full retirement age is 67: claiming at 62 pays about 70% of your full benefit, while waiting until 70 pays about 124%. The increase stops at 70. Spousal and survivor benefits change the math, so there's no single right answer — only the one that fits your health, your spouse's earnings, and how much other income you have.

Idaho does not tax Social Security benefits — they're subtracted on your Idaho return. Withdrawals from 401(k)s, traditional IRAs, and most pensions are generally taxed as Idaho income, at the state's flat rate of 5.3% for 2025. Idaho also allows a retirement benefits deduction of up to $48,216 for single filers or $72,324 for joint filers in 2025 if you're 65 or older (or 62 and disabled), reduced by any Social Security or railroad retirement you receive — but only certain pensions and retirement benefits qualify, so confirm whether yours does before you plan around it.

Most people must begin taking required minimum distributions from traditional IRAs and workplace plans at age 73. Your first one can be delayed to April 1 of the following year — which means two withdrawals in that year — and every one after that is due by December 31. Missing one carries a 25% penalty on the amount you didn't take, reduced to 10% if you correct it within the IRS's correction window. Roth IRAs have no required withdrawals while you're alive, and if you're still working at 73 you may be able to delay them from your current employer's plan unless you own 5% or more of the business.

Medicare generally begins at 65, with a seven-month window to sign up: three months before the month you turn 65 through three months after. Retire earlier and you'll need your own coverage in the gap years — a spouse's employer plan, COBRA, or the marketplace — priced into the plan. Sign up for Medicare on time: a Part B late penalty adds 10% to your premium for each year you could have enrolled and didn't, usually for as long as you hold Part B.

PERSI offers six Base Plan retirement options, and the one you pick sets both your monthly amount and whether someone keeps income after you die. Retiring before service retirement age, or before meeting the Rule of 80/90, reduces the benefit. Many members also have a PERSI Choice 401(k) or a 403(b) or 457 alongside the pension. Get an official estimate from PERSI, weigh the survivor options carefully, and then look at the pension as one layer of a retirement income plan rather than the whole picture.

A Roth conversion moves money from a traditional 401(k) or IRA into a Roth account. You pay income tax on the amount moved this year, and qualified withdrawals later are tax-free. Converting can be useful in a low-income year, or before required distributions begin, but it raises your taxable income now, can affect your Idaho tax and Medicare premiums, and isn't free to reverse. This is general information — work the numbers with a tax professional before converting.

Private Wealth Advisors is paid by clients, not by commissions from product providers, so advice isn't tied to what anyone sells. The first meeting is a no-obligation appointment at our downtown Boise office, by appointment only, where we talk through your situation and whether we're the right fit. Fees are discussed there rather than published on the website.

Not necessarily — but retirement is when several one-way decisions arrive at once: when to claim Social Security, which pension option to lock in, how to draw down accounts without paying more Idaho and federal tax than you need to, and how to cover healthcare before Medicare. A financial planner's job is to coordinate those decisions into one plan and revisit it as rules and markets change. If your situation is simple, you may only need a one-time review; if it involves a business, a PERSI pension, or significant savings, ongoing planning usually pays for itself in avoided mistakes.