Can you pay 0% federal income tax in retirement?

For many retirees, yes. The idea, popularized by David McKnight in The Power of Zero, is that the account your money sits in can matter as much as how much you've saved.

The three buckets

Taxable accounts, like savings and brokerage accounts, are taxed on interest and gains each year. Tax-deferred accounts, like traditional IRAs and 401(k)s, are taxed when you withdraw. Tax-free accounts, like Roth IRAs and properly structured cash-value life insurance, can be withdrawn tax-free when the rules are followed.

Where the 0% comes from

You don't pay federal income tax until your taxable income is above your deductions. In 2026, a married couple filing jointly gets a $32,200 standard deduction. If both spouses are 65 or older, they add $1,650 each. Through 2028 there's also a temporary senior deduction of up to $6,000 per person, which phases out at higher incomes. Together, that's up to $47,500 of income a retired couple can receive before any federal income tax applies.

The catch: Social Security and RMDs

Up to 85% of your Social Security can become taxable as your other income rises. And required minimum distributions from tax-deferred accounts begin at 73, or 75 if you were born in 1960 or later. A large IRA can force out withdrawals that push you over the line whether you need the money or not.

How people get there

The usual approach is to shift money from the tax-deferred bucket into the tax-free bucket over several years, often through Roth conversions in lower-income years, so that what's left in the IRA produces withdrawals small enough to fit under your deductions.

Educational information only, not tax advice. Tax rules change. Work with a tax professional before converting accounts.