Is it better to retire at the start of the year or the end of the year for tax reasons?

Timing your retirement date can affect your tax bill more than people expect. Retiring early in the year means fewer months of high salary, which can drop you into a lower bracket and open room for cheap Roth conversions or capital-gains harvesting in that first partial year. Retiring late in the year stacks a full salary plus any severance, unused vacation payout, and final bonus into one high-income year, potentially raising taxes and even affecting future Medicare IRMAA surcharges through the two-year look-back. There's no single right answer, but coordinating your exit date with when income lands, and when your benefits and coverage begin, can save real money.