How to Avoid Retirement Mistakes With a Retirement Planning Consultant in Oro Valley, AZ
Retirement mistakes happen even to careful savers, and working with a retirement planning consultant in Oro Valley, AZ, can help residents avoid the most costly ones. Updated IRS rules, new SECURE 2.0 provisions, and rising healthcare costs in Pima County have changed the landscape enough that plans built even a year or two ago may already have gaps. Here are five common mistakes and how professional guidance helps you sidestep them.
Mistake 1: Missing the Yearly Contribution Limit Increases
The 401(k) contribution limit is now at $24,500, up from $23,500 in 2025. Traditional IRA limits rose to $7,500, with catch-up contributions for those over 50 increasing to $1,100, bringing the total to $8,600.
More significantly, those aged 60 through 63 may use a SECURE 2.0 "super" catch-up of $11,250, raising their total 401(k) limit to $35,750. Many savers are still unaware of this provision. Also starting this year, employees age 50 and older who earned more than $145,000 in the prior year must direct catch-up contributions to a Roth account. A retirement planning consultant can help you determine how this affects your strategy.
Mistake 2: Misunderstanding the Updated RMD Rules
RMD rules are more flexible than they used to be. Under SECURE 2.0, required minimum distributions begin at age 73 for those born 1951 to 1959 and at age 75 for those born in 1960 or later. Employees may also leave funds in a 401(k) indefinitely without taking RMDs, simplifying estate planning and allowing continued tax-deferred growth.
Missing an RMD still carries a 25% penalty on the amount not withdrawn, though it may be reduced if corrected promptly. Knowing which accounts are subject to RMDs and in what order to withdraw from them is exactly where a retirement planning consultant serving Oro Valley, AZ, can protect your savings.
Mistake 3: Getting Social Security Timing Wrong
Claiming Social Security at the wrong time can permanently reduce lifetime income. For each year you delay beyond full retirement age, up to age 70, your benefit grows by roughly 8%. Most break-even points fall between ages 80 and 82.
That said, waiting is not always the right move. Poor health or the absence of a surviving spouse may favor an earlier claim. Spousal benefits, survivor benefits, and Arizona income tax treatment all add complexity that a consultant can help you work through.
Mistake 4: Underestimating Healthcare Costs in Pima County
Healthcare is one of the largest unplanned expenses for retirees in Oro Valley, AZ. A couple on Medicare faces two Part B premiums at $202.90 each per month. Adding Medigap Plan G, Part D, dental, vision, and out-of-pocket costs, $9,500 per year is a reasonable planning baseline, not a ceiling.
For those who retire before 65, costs are higher. Non-Medicare ASRS retirees choosing state coverage pay $660 to $1,397 monthly for single coverage, rising to $1,320 to $2,974 for an additional person.
Oro Valley, AZ, retirees also need to watch for IRMAA surcharges, which begin at $109,000 in modified adjusted gross income for single filers and $218,000 for married filing jointly. These surcharges are cliff-based, so a large Roth conversion or IRA withdrawal can push you into the next tier unexpectedly. Coordinating withdrawals to avoid unnecessary surcharges is a key part of what a retirement planning consultant can manage for you.
Mistake 5: Skipping Tax-Integrated Planning
Treating tax planning and retirement planning as separate concerns is one of the most expensive oversights retirees make. This year’s changes to contribution limits, income phase-outs, and catch-up rules may create new opportunities depending on your account mix and income level.
For Oro Valley, AZ, residents with both traditional and Roth accounts, the sequence in which you draw down each account can significantly affect your total tax bill over time. Without a coordinated approach, beneficiaries may also inherit accounts in ways that trigger large, avoidable tax bills. You can learn more about how estate planning fits into a retirement strategy on the Estate Planning page.
When Should I Start Working With a Retirement Plan Consultant?
Most advisors recommend beginning formal retirement planning at least ten years before your target retirement date, though a consultation is valuable at any stage. Residents in Oro Valley, AZ, and Pima County often benefit from reviewing their plan whenever major rule changes occur, such as the yearly updates to contribution limits and RMD ages.
How Does a Retirement Planning Consultant Differ From a General Financial Advisor?
A retirement plan consultant focuses specifically on the income, tax, healthcare, and estate decisions that shape retirement, including Social Security timing, withdrawal sequencing, Medicare enrollment, and coordination with estate documents, all as one integrated plan rather than separate concerns.
Take the Next Step With an Experienced Retirement Planning Consultant
Avoiding these mistakes is easier with a professional retirement planning consultant who understands both the yearly rule changes and the financial landscape retirees face. Hartman & Company, PC serves clients in this region, offering retirement planning, tax strategy, and estate planning as part of a coordinated approach.
To schedule a consultation, call (520) 579-2156 or reach out online. You can also explore the retirement planning counselor services page to learn more about what personalized planning can include. Find Hartman & Company, PC, on Google and read client reviews at Hartman & Company, PC.
