Tax-Efficient Retirement Income Planning for Procter & Gamble Employees

Not all income is taxed the same way

Even when total income is identical, the tax liability varies dramatically depending on where the income comes from:


  • Traditional IRA distributions/Roth conversions (Savings Plan + PST)
  • Long-term capital gains (preferred shares from PST post NUA)
  • Or a combination of both

Scenario assumptions & summaries

The illustration assumes a couple is married filing jointly and both are age 60 (before Social Security benefits).

Scenario A

Ordinary income from IRA distributions results in highest tax bill at $11,240.

Scenario B

Long-term capital gains can qualify for the 0% capital gains tax rate, resulting in no federal tax liability.

Scenario c

A blended strategy reduces taxes significantly, lowering the effective tax rate to just 3.5%.

A B C
IRA Distributions/Roth Conversions $130,000 — $65,000
Long-term Capital Gains — $130,000 $65,000
Total Income & AGI $130,000 $130,000 $130,00
Deductions (Standard) $32,200 $32,200 $32,200
Taxable Income $97,800 $97,800 $97,800
Total Tax $11,240 — $3,400
Marginal Bracket 12.0% 10.0% 10.0%
Effective Tax Rate 11.5% 0.0% 3.5%

Coordinating multiple income sources can improve tax efficiency while still meeting spending needs.

Key takeaway

After retiring from P&G and executing the NUA distribution with the preferred shares, effective retirement and wealth planning is not just about how much income your generate—it is about where the income comes from. Strategic coordination between taxable accounts, retirement accounts, and ROth conversion opportunities can potentially:


  • Minimize tax liability
  • Reduce marginal tax exposures
  • Improve retirement cash-flow
  • Increase long-term after-tax wealth


Thoughtful tax planning can create significant savings over time, especially during lower-income years or early retirement windows.

The examples provided do not represent the experience of any specific client and should not be interpreted as a guarantee of future tax savings or investment outcomes. References to tax rates and tax treatment are based on current federal tax law, which is subject to change. Certain strategies discussed may involve risks, limitations, holding requirements, or unintended tax consequences. No all investors will benefits equally from these strategies, and some strategies may not be appropriate for all individuals.

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