Love and Taxes: The Surprise Cost of Remarriage in Retirement

As an attorney and financial advisor, I have spent more than two decades helping clients navigate the intersection of their hearts and their wallets. We often think of marriage purely in terms of companionship and love—especially later in life. But when you look at it through the eyes of the IRS, marriage is essentially a business merger.

And like any merger, sometimes the math works in your favor, and sometimes it really, really doesn't.

I work with many clients like Elizabeth—retired, financially responsible, and deeply protective of the nest egg she has built. Elizabeth's home is paid off, she has no debt, and she wants to ensure she never becomes a burden on her children.

But let's imagine Elizabeth meets someone. They decide to tie the knot in 2026. Suddenly, Elizabeth isn't just merging households; she is merging tax brackets, Required Minimum Distributions (RMDs), and Medicare calculations. This is where the "Marriage Penalty" often strikes retirees the hardest.

A Hypothetical Scenario: The "Gray Marriage" Squeeze

Let's look at the numbers. Elizabeth has carefully planned her income to stay within certain tax thresholds. She meets Robert, who has done the same.

Separately, they are both comfortable. Combined, they might be in trouble.

1. The Medicare Surcharge (IRMAA)

This is the one that shocks my retired clients the most. Medicare Part B and Part D premiums are based on your income from two years prior. This is called the Income-Related Monthly Adjustment Amount (IRMAA).

In 2026, the surcharge kicks in for singles with income over $109,000. For married couples, it starts at $218,000. This looks fair on the surface—it is exactly double.

However, the brackets compress as you go up. The highest surcharge hits singles at $500,000, but it hits married couples at $750,000. If Elizabeth and Robert both have high incomes from RMDs or pensions, combining those incomes on a joint tax return could push them into a higher premium tier than they would have occupied as single filers. Suddenly, their Social Security checks are smaller because more is being withheld for Medicare.

2. The Standard Deduction Difference

For 2026, the Standard Deduction for a single filer is $16,100. For a married couple filing jointly, it is $32,200. Again, this seems fair—it's double.

But Elizabeth is over 65. As a single filer, she gets an additional standard deduction of $2,050. If she marries Robert (who is also over 65), they each get an additional deduction of only $1,650. Four hundred dollars seems like a small difference, but in the world of fixed incomes and tight margins, every dollar of taxable income matters.

3. The RMD Tax Torpedo

The biggest issue usually comes from Required Minimum Distributions (RMDs).

If Elizabeth and Robert both have healthy traditional IRAs, they are forced by the IRS to take withdrawals. When they file jointly, those two RMDs stack on top of each other.

In 2026, the 22% tax bracket for married couples ends at $211,400 in taxable income. Any income above that jumps to 24%. If their combined RMDs and Social Security push them over that line, they might find themselves paying a higher marginal rate on their retirement savings than they ever anticipated.

Why We Plan for Logistics, Not Just Numbers

My approach to financial planning is deeply rooted in seeing how easily plans can unravel. I watched my parents divorce when I was in high school, and I saw how quickly financial stability can disappear when life transitions happen without a net.

That experience taught me that we have to look at the whole picture. For Elizabeth, remarriage may be a beautiful life transition, but it requires a new level of logistical planning. We might look at:

Roth Conversions: Doing them before the marriage to reduce future RMDs.

Qualified Charitable Distributions (QCDs): Using the $111,000 limit to satisfy RMDs without adding to taxable income.

Legal Structures: Updating estate documents to ensure Elizabeth's assets still go to her children as she intends, rather than accidentally disinheriting them through a new marriage.

Watch: Navigating the Tax Law Changes

In this video, my Propel co-founders Emily and Amanda discuss the shifting landscape of tax laws and how the "middle zone" of brackets often catches taxpayers off guard. They look at why legislation keeps moving the goalposts and what you need to look for on your return.

You Can Have the Romance Without the Regret

I reassure my clients regularly that they are doing great just by asking these questions. You don't have to avoid marriage to save money, but you do need to go into it with your eyes wide open.

If you are considering a major life change—whether it's marriage, downsizing, or helping a family member—let's run the numbers first. We can help you structure your finances so that you protect the security you've worked so hard to build.