Most CPAs Are Paid to File, Not to Plan: What to Ask For

Preparation looks back. Planning looks ahead.

Tax preparation reports what already happened. By the time a return is prepared in March or April, the year is closed. The preparer's job is to report last year's income, deductions and credits accurately and on time. That is skilled, careful work, and most preparers do it well.

Tax planning asks a different question: what should happen this year, and in the next several years, so that lifetime taxes are lower? Most planning moves must be made before December 31. Once the year ends, the return can only describe the result.

For people with $300,000 to $10 million saved, the expensive decisions in retirement are mostly timing decisions. Neither is better than the other. They are two different services, and the second one usually has to be asked for.

The planning moves a filing engagement usually does not cover

Roth conversion windows

A Roth conversion moves money from a traditional individual retirement account (IRA) to a Roth IRA. The converted amount is taxed as income in the year of the conversion. Since 2018, a conversion cannot be undone (recharacterized) (IRS Publication 590-A, 2025, checked October 14, 2026). That makes the amount a decision to make before year end, not at filing time. The low-income years between retirement and required withdrawals are often the window.

Required minimum distribution (RMD) timing

Required minimum distributions from traditional IRAs begin by April 1 of the year after you reach age 73 (IRS Publication 590-B, 2025, checked October 14, 2026). The first year's withdrawal is figured by dividing the prior year-end balance by an IRS life expectancy factor, 26.5 at age 73 (same source). A larger balance means larger forced withdrawals for life.

The IRMAA two-year lookback

The Medicare income-related monthly adjustment amount (IRMAA) is a surcharge on Part B and Part D premiums. It is generally based on your tax return from two years earlier (Social Security Administration, POMS HI 01101.010, checked October 14, 2026). So a 2026 Roth conversion or home sale can raise your 2028 premiums. In 2026, Part B surcharges start above $218,000 of modified adjusted gross income (MAGI) on a joint return and $109,000 on a single return (CMS, 2026 Medicare Parts A and B Premiums and Deductibles, November 14, 2025).

Qualified charitable distributions

A qualified charitable distribution (QCD) sends IRA money directly to a charity, starting at age 70 and a half, without counting it as income. The 2025 limit was $108,000 per person (IRS Publication 590-B, 2025). It must be done during the year, directly from the IRA.

Gain harvesting

In 2026, a married couple pays a 0% federal rate on long-term capital gains while taxable income stays at or below $98,900 (IRS Revenue Procedure 2025-32, October 9, 2025). In a low-income year, selling and rebuying appreciated funds can reset their cost basis at no federal tax. It has to be done before year end.

The widow's single-filer jump

After the year a spouse dies, the survivor usually files single. In 2026 the 22% bracket ends at $100,800 of taxable income for a joint return but at $50,400 for a single return (IRS, tax inflation adjustments for 2026, October 9, 2025). See the widow's penalty. Planning while both spouses are alive is the main way to soften it.

Who can do what: CPA, enrolled agent, attorney, preparer

Any paid preparer must have an IRS preparer tax identification number (PTIN). The IRS lists the credentials (IRS, Understanding tax return preparer credentials and qualifications, updated January 29, 2026):

• Certified public accountants (CPAs) are licensed by state boards of accountancy and have unlimited rights to represent clients before the IRS.
• Enrolled agents (EAs) are licensed by the IRS after a three-part exam that covers tax planning, and have unlimited representation rights.
• Attorneys are licensed by state courts or bars and also have unlimited representation rights.
• Preparers with a PTIN only may prepare returns but generally cannot represent clients before the IRS.

The IRS says some CPAs and attorneys specialize in tax preparation and planning (same source). A credential tells you who is qualified. It does not tell you what you have hired them to do. You can check a credential in the IRS Directory of Federal Tax Return Preparers, linked from Choosing a tax professional (IRS, updated August 21, 2026).

Why planning is often not part of the filing fee

A return engagement is priced around producing an accurate return. The engagement letter usually lists the returns to be prepared. Projecting several future years, modeling conversions and tracking Medicare thresholds is extra work, and many firms quote it separately or offer it only on request.

There is also a calendar problem. Filing season runs January through April, when the planning window for last year is already shut. The best time for a planning conversation is usually September to early December.

None of this is a criticism. A preparer who was hired to file has done the job by filing well. The gap appears when a household assumes the filing fee includes looking ahead.

When filing only is enough, and how to ask for planning

Filing only can make sense when income is steady, there are no large IRA balances, no sale is coming and both spouses are healthy. For many households with large pretax accounts, a sale ahead or one spouse in poor health, a planning meeting can be worth asking for.

To ask for it, send a short written request in the fall: "Before year end, please project our 2026 and 2027 taxes, show how much we could convert to Roth while staying in our current bracket and under the first IRMAA threshold, and tell us what this would cost as a separate engagement." Ask for the answer in writing with the numbers. If your current preparer does not offer planning, a fee-only planner or another CPA, EA or tax attorney may.

To estimate your own numbers first, try the Roth conversion calculator and the 2027 IRMAA brackets.

A plain example with numbers

All numbers are hypothetical. A married couple, ages 64 and 63, has $1,200,000 in traditional IRAs. They have $80,000 of pension and part-time income and have not claimed Social Security. Both will be on Medicare by 2028, when their 2026 return sets their premiums. Federal figures use 2026 brackets and the $32,200 joint standard deduction (IRS, October 9, 2025) and ignore extra deductions for age 65 and older.

The arithmetic: the conversion fills the 12% bracket from $47,800 to $100,800 ($53,000 x 12% = $6,360) and then the 22% bracket from $100,800 to $185,800 ($85,000 x 22% = $18,700). Total: $25,060, about 18% of the amount converted.

Converting one more dollar would cross $218,000. Using 2026 figures, that adds $81.20 a month to each spouse's Part B premium (CMS, November 14, 2025): $81.20 x 12 x 2 = $1,948.80 for the year. Whether the conversion is worth it depends on the tax rate the money would face later, including the survivor's single rates. That is the planning question, and it has to be asked before December 31, 2026.

Sources

The Retirement Literacy Foundation is a 501(c)(3) public charity. This page is general education, not tax, legal or investment advice. Nothing is sold here, no product is recommended, and RLF accepts no funding from financial companies. Rules and figures change; each one above shows its source and date. Check anything you plan to act on with your state insurance department or a qualified professional who is not paid on the product.