5 Ways Tampa Bay Residents Can Maximize Their Retirement Savings in 2026
If you have spent your career in the Tampa Bay area, you know Florida is one of the best places in the country to build wealth. However, tax friendly does not mean tax free. Between shifting federal tax brackets and the rapid growth in areas like Land O' Lakes and Wesley Chapel, the retirement strategies that worked five years ago may not be enough today. To help you navigate the 2026 landscape, here are five high-impact moves to maximize your nest egg.
1. Defuse the "RMD Time Bomb" with Florida-Style Roth Conversions
Most Americans dread the day Required Minimum Distributions (RMDs) kick in because they face a double tax at the federal and state levels. While Florida will not tax your RMDs, the federal government certainly will. Huge mandatory withdrawals can push you into a higher federal tax bracket and even spike your Medicare premiums (IRMAA).
The Florida Solution: We are currently in a strategic sweet spot for partial Roth Conversions. In Florida, you pay $0 in state tax on the amount you convert. If you were in a high-tax state, a $100,000 conversion could cost you an extra $5,000 to $10,000 just in state fees.
The Result: By paying only the federal tax now at today's known rates, you turn tax-deferred accounts into tax-free buckets. This eliminates future RMD stress and ensures every dollar you withdraw later stays 100% in your pocket.
2. Retire Early? Use the "Rule of 55"
If you are looking to exit the workforce before age 59½, you do not have to wait until you are nearly 60 to access your money. This is a common strategy for the growing FIRE (Financial Independence, Retire Early) community in Wesley Chapel.
How it works: If you leave your job in or after the year you turn 55, the IRS Rule of 55 allows you to take penalty-free withdrawals from your current employer’s 401(k) or 403(b).
Important Note: This only applies to your current plan. Rolling that money into an IRA can actually lock it away until 59½, so consult a fiduciary before moving your funds.
3. The "Double-Dip": 457(b) and 403(b) Accounts
Many Tampa Bay residents working in government, healthcare, or at USF do not realize they can often contribute to two separate retirement plans simultaneously.
The Math: In 2026, the contribution limit for a 403(b) is $24,500. Many of these employers also offer a 457(b) plan with its own separate $24,500 limit.
The Strategy: High-earning couples can potentially shield nearly $100,000 of income from federal taxes annually by utilizing both buckets at once. This is one of the fastest ways to supercharge a late-stage retirement "catch-up."
4. Use Taxable Brokerage Accounts as a "Bridge"
Do not ignore the flexibility of a standard brokerage account. It is the ultimate tool for those who want options before they reach retirement age.
The "Bridge" Strategy: If you want to retire at 50, start a business in Land O' Lakes, or pivot careers, you need bridge money that is not locked behind age restrictions.
Tax Efficiency: Long-term capital gains rates are often much lower than ordinary income tax rates. Having a taxable bucket allows you to control your tax bill by choosing exactly which assets to sell and when.
5. Review Your "Net" Retirement Income
Living in Florida gives you a massive "state-tax-free" raise on your retirement income, but it also changes how you should view your portfolio.
The Local Lens: Because you aren't losing 5% to 8% to a state treasury, your "safe withdrawal rate" might actually be higher than national averages suggest.
The Move: Don't use a "one-size-fits-all" retirement calculator found online. We build custom plans that factor in the specific Florida landscape, from our unique property tax structures to our friendly climate for retirees.
The MADE Financial Difference
At MADE Financial Design, we specialize in helping families coordinate these various buckets into one cohesive plan. As a Fee-Only Fiduciary, our only goal is to make sure you keep more of what you have worked so hard to earn.
