“In a changing regulatory environment, Kroger employees who continue working beyond traditional retirement age may benefit by working with qualified professionals to align their earned income, retirement timing, and long-term planning.” - Wesley Boudreaux, a representative of The Retirement Group, a division of Wealth Enhancement. 

In this article, we will discuss:

1. Working beyond traditional retirement age.

2. Key 2026 tax and retirement law changes affecting income and savings.

3. Strategies for retirement planning, including required minimum distributions (RMDs), Roth contributions, and estate planning.

A growing number of professionals, including those at Kroger, are choosing to work well beyond the traditional retirement age. ¹  Notably, financial need is not always the main driver. Employment often provides discipline, purpose, and social interaction, which leads many individuals to remain professionally active. However, additional tax planning considerations arise when continuing to generate income later in life, especially in light of recent legislative developments related to retirement, income, and estate planning.

The planning environment for individuals in their 60s and 70s has shifted due to recent legislative changes, including provisions under the One Big Beautiful Bill Act (OBBBA), signed into law in July 2025, as well as earlier laws like the Tax Cuts and Jobs Act (TCJA) and SECURE 2.0. For Kroger professionals, these updates may influence retirement contributions, income planning, charitable strategies, and estate planning decisions.

Understanding these changes may help align ongoing employment income with long-term retirement planning goals.

What You Should Know About the 2026 Tax Environment 

Bracket Management Remains Important

Many Kroger employees who continue working into their 60s and 70s may find themselves in higher tax brackets than originally expected during earlier retirement planning years. Continued earned income may raise taxable income, especially when combined with Social Security benefits, consulting income, or investment withdrawals.

When planning for continued work at Kroger or elsewhere, bracket management—strategically controlling annual income recognition—remains an important consideration.

Roth Catch-Up Contributions for Higher Earners

Employees age 50 and older who earned more than $145,000 from the same employer in the prior year are required, starting in 2026, to make catch-up contributions to retirement plans as Roth (after-tax) contributions instead of pre-tax contributions.

Base elective deferral limits remain unchanged, with this rule applying only to catch-up contributions.

For individuals continuing employment later in their careers, this shift may influence tax planning and retirement savings strategy.

Super Catch-Up Contributions (Ages 60–63)

Kroger employees between ages 60 and 63 may qualify for enhanced catch-up contribution limits under SECURE 2.0.

For example, eligible individuals may be able to contribute up to $11,250 in 2026 above standard catch-up limits.

This expanded window provides additional opportunity to increase retirement savings during later working years.

Required Minimum Distribution (RMD) Timing

Under current law, required minimum distributions (RMDs) begin at age 73 for those born between 1951 and 1959.

Kroger employees who continue working before reaching RMD age may have additional flexibility to manage taxable income, evaluate Roth conversion strategies, and structure withdrawals. This flexibility can play a key role in long-term retirement tax planning.

Social Security Tax Thresholds

Depending on total income levels, up to 85% of Social Security benefits may become taxable. ²

For Kroger employees planning retirement income, coordinating earned income, retirement withdrawals, and other income sources may help manage overall tax exposure. Income coordination may support more consistent cash flow and tax management.

State Tax Considerations and Relocation

State income tax differences can significantly affect retirement income planning. For example, New Jersey has relatively higher top marginal income tax rates, while Florida does not impose a state income tax. ³

For Kroger employees considering relocation during retirement, these differences may influence after-tax income and long-term planning decisions.

Two Examples of Continuing to Work After Retirement 

Example 1: Mei, 63

Mei, a former marketing executive with over 30 years of experience, transitioned into consulting after leaving full-time corporate employment. She now works part-time and earns approximately $185,000 annually. At 63, she falls within the SECURE 2.0 enhanced catch-up contribution age window.

This allows her to increase retirement savings beyond standard limits while still working. Her income also exceeds the $145,000 threshold that requires Roth catch-up contributions starting in 2026, influencing how she balances current tax obligations with long-term savings planning.

Mei’s continued consulting income also contributes to estate growth. With the federal estate exemption projected near $15 million per individual in 2026, she is evaluating multi-year gifting and charitable planning strategies.

Example 2: Robert (71) and Susan (65)

Robert and Susan, both former professionals, now earn approximately $60,000 annually through board stipends and consulting work. Their continued income allows them to reduce withdrawals from investment accounts while supplementing Social Security benefits.

Robert is approaching age 73, making RMD planning increasingly relevant. The couple is considering withdrawal timing strategies and Roth conversion opportunities prior to reaching mandatory distribution age.

They also relocated from New Jersey to Florida. The absence of state income tax in Florida compared to higher rates in New Jersey has improved their after-tax cash flow and overall retirement income efficiency.

The Big Picture: Strategy and Long-Term Planning

Many professionals, including those from Kroger, choose to work later in life by personal choice rather than necessity. While continued employment provides purpose and structure, it also introduces additional financial planning complexity.

Coordinating earned income, retirement contributions, estate planning, and withdrawal timing may help align long-term financial goals. Changes in retirement account rules, estate exemptions, and tax laws make ongoing planning more important.

How The Retirement Group Can Help Kroger Employees

Navigating retirement while continuing to work involves multiple considerations, including taxes, retirement accounts, estate planning, and income timing. The Retirement Group assists Kroger employees in reviewing these factors and aligning them with long-term financial objectives.

If you are continuing to work or considering working past traditional retirement age, speaking with a financial professional may help clarify available planning strategies. Support may include retirement income planning, tax-aware withdrawal strategies, contribution planning, and estate preparation.

You may reach The Retirement Group at (800) 900-5867 to learn more about retirement planning considerations.

This content is for informational purposes only and does not constitute legal, tax, or investment advice. Individuals should consult their financial advisor, CPA, or tax professional regarding their specific situation.

Sources:

1. Fortune. ' More Americans are working past age 65 ,' by Martha Boudreau. Apr. 26, 2024.

2. Internal Revenue Service. “ IRS reminds taxpayers their Social Security benefits may be taxable .' IRS Tax Tip 2022-22, Feb. 9, 2022.

3. Intuit TurboTax. ' States with the Lowest Income Taxes and Highest Income Taxes .' May 19, 2026.