How a Widower at 58 Rebuilt a Retirement Plan on a Single Income With No Financial Background

When David Mercer’s wife Linda died of pancreatic cancer in March 2021, he inherited not just grief — he inherited financial chaos. At 58, with a combined household income that had supported two people for 31 years, he suddenly faced a retirement landscape built for a partnership that no longer existed. According to the U.S. Census Bureau, there are more than 11 million widowed Americans over age 50, and the vast majority were not the primary financial decision-maker in their marriage. Building a retirement plan after spouse dies is one of the most financially and emotionally complex challenges a person can face — and most people face it completely unprepared.

The numbers are staggering in scope. A 2022 study by Merrill Lynch found that 61% of widows and widowers say they were “not at all involved” in managing household investments before their spouse died. The average age of widowhood in the United States is just 59 years old — close enough to retirement to feel urgent, far enough away to still require years of planning. Meanwhile, Social Security survivor benefits, inherited IRAs, pension decisions, and insurance payouts all arrive simultaneously, demanding decisions within months — sometimes weeks — of the loss. One wrong move can cost tens of thousands of dollars in taxes, missed benefits, or penalties that compound for decades.

This guide exists because David’s story is not unique — but his outcome can be. Over the following sections, you will find a step-by-step breakdown of exactly how someone with no financial background can rebuild a retirement plan after losing a spouse at 58. You will learn how to assess what you have, what you have lost, and what you can still build. Specific dollar thresholds, IRS rules, Social Security strategies, and investment restructuring frameworks are all included — not as theory, but as actionable tools you can use starting today.

The Emotional-Financial Paralysis Problem

Grief and financial urgency are a brutal combination. Research published in the Journal of Financial Planning found that cognitive impairment following spousal bereavement can reduce financial decision-making capacity by up to 40% in the first six months. Yet that same six-month window is often when the most consequential financial decisions must be made — pension elections, insurance claims, account consolidations, and tax filings.

This is not a failure of intelligence. It is a biological response to loss. The prefrontal cortex — responsible for planning and rational decision-making — is measurably suppressed during acute grief. Financial advisors who specialize in bereavement refer to this as the “widow’s fog,” and it is well-documented in behavioral finance literature.

Why 58 Is a Particularly Vulnerable Age

At 58, a surviving spouse is caught between two financial worlds. They are too young to access most retirement accounts without penalty (59½ is the threshold), too far from Medicare (65), and often too close to Social Security claiming age to afford strategic mistakes. The decisions made in this window — even small ones — can alter retirement income by $500 to $1,500 per month for the rest of a person’s life.

Compounding the problem is what researchers call the financial knowledge gap. In many households, one spouse handles investments, taxes, and long-term planning. When that spouse dies, the surviving partner is left holding accounts, policies, and documents they have never managed. A 2020 UBS survey found that 56% of widows say they wished they had been more involved in financial decisions during their marriage.

The Cost of Doing Nothing

Many surviving spouses do nothing for a year or more after the loss, placing accounts in a kind of financial stasis. While understandable emotionally, this inaction carries real costs. Uninvested life insurance payouts sitting in a savings account at 0.5% APY lose purchasing power every month. Pension elections with short decision windows can be missed permanently. And survivor Social Security benefits, if claimed at the wrong time, can lock in a permanently reduced payment.

The goal is not to force decisions through grief. It is to identify which decisions are time-sensitive and which can wait — and to build a structured plan around that distinction.

Immediate Financial Triage: The First 90 Days

The first 90 days after losing a spouse are not the time to overhaul your retirement strategy. They are the time to stop the bleeding. Financial triage means identifying what needs to be done immediately, what needs to be done within a year, and what can wait until you are ready to think clearly.

Documents to Gather in Week One

The most urgent task is document collection. Without the right paperwork, you cannot file insurance claims, transfer accounts, or notify government agencies. Every day of delay can mean delayed income or missed deadlines.

Document Type	Where to Find It	Why It’s Urgent
Death Certificates (10+ copies)	Funeral home or vital records office	Required for nearly every financial institution
Life Insurance Policies	Home files, employer HR, insurance company	Claims must be filed to start the payout process
Will and Trust Documents	Attorney, safe deposit box, home files	Determines asset distribution and legal authority
Social Security Card (both)	Home files, SSA office	Required to apply for survivor benefits
All Account Statements	Mail, online portals, employer HR	Needed to identify and consolidate assets
Tax Returns (3 years)	Home files, accountant, IRS portal	Determines tax picture and filing options

The 30-60-90 Day Action Framework

Not every financial task has the same urgency. Structuring your response in phases prevents overwhelm while ensuring nothing critical is missed.

Timeframe	Priority Action	Consequence of Delay
Days 1-30	File life insurance claims; notify SSA; notify employer pension administrator	Delayed benefit payments; missed pension election windows
Days 31-60	Transfer joint accounts to sole ownership; review beneficiary designations on all accounts	Probate complications; outdated beneficiaries receiving assets
Days 61-90	Meet with a CPA to assess tax filing status; contact a fee-only financial planner	Filing errors; missed deductions; poor account decisions

Navigating Social Security Survivor Benefits

Social Security survivor benefits are one of the most powerful and most misunderstood tools available to a widowed person. The rules are complex, the stakes are high, and the decisions are largely permanent. Yet according to the Social Security Administration, millions of eligible survivors either fail to claim correctly or claim too early, forfeiting thousands of dollars in lifetime income.

How Survivor Benefits Are Calculated

A surviving spouse is generally entitled to up to 100% of the deceased spouse’s Social Security benefit — but only if claimed at the survivor’s full retirement age (FRA). Claiming before FRA results in a permanent reduction of up to 28.5%. Claiming at age 60 (the earliest allowed) locks in approximately 71.5% of the full benefit forever.

For someone like David, whose wife earned $2,200 per month in Social Security benefits, the difference between claiming at 60 versus 67 is $484 per month — or $5,808 per year — for the rest of his life. Over a 20-year retirement, that is more than $116,000 in lost income.

The Dual-Claim Strategy for Survivors

One of the most powerful strategies available to widowed individuals is the dual-claim approach: claim one benefit early to generate income, then switch to the larger benefit later. For example, a widowed person might claim their own reduced Social Security retirement benefit at 62, then switch to the full survivor benefit at age 67. Or they might claim the survivor benefit early to bridge income while letting their own retirement benefit grow 8% per year through age 70.

The right sequence depends on the relative size of both benefits. This is why working with a Social Security claiming specialist or a fee-only financial planner is strongly recommended before making any election.

Special Rules for Younger Survivors

At 58, David is two years away from the minimum survivor benefit claiming age of 60. During those two years, he must plan without that income stream. However, if he has dependent children under 16, he may be eligible for additional survivor benefits regardless of his own age. These rules are covered in SSA Publication 05-10084 and are worth reviewing with an SSA representative directly.

Rebuilding a Retirement Plan After Your Spouse Dies

Rebuilding a retirement plan after spouse dies requires starting from scratch in ways most people do not anticipate. The old plan was built on two incomes, two Social Security benefits, two lifespans, and two tax situations. Every one of those assumptions must now be revised from the ground up.

Recalculating Your Retirement Number

The classic rule of thumb — saving 10-12 times your pre-retirement income — was designed for couples. For a single person, the math shifts. Fixed costs like housing, utilities, and insurance do not drop by 50% when a second person is no longer present. Most financial planners use a 75-80% cost retention factor for surviving spouses, meaning if the couple spent $80,000 per year, the survivor typically still needs $60,000-$64,000 annually.

Using a 4% safe withdrawal rate as a baseline, a single person needing $60,000 per year from savings (assuming $20,000 in Social Security) needs approximately $1 million in invested assets at retirement. If David has $300,000 saved at 58 and wants to retire at 67, he has nine years to close a $700,000 gap — aggressive but achievable with the right strategy.

Incorporating Life Insurance Proceeds Strategically

Life insurance proceeds are one of the few large, tax-free lump sums a surviving spouse will ever receive. The average life insurance payout in the United States is approximately $168,000, according to LIMRA. However, the temptation to use this money for immediate expenses — home repairs, paying off debt, helping adult children — must be balanced against its retirement-building potential.

A $168,000 lump sum invested in a diversified portfolio at a 7% average annual return grows to approximately $310,000 over nine years. That same $168,000 spent on immediate expenses produces zero future retirement income. The strategic choice is not always obvious, but it is always consequential.

For retirees already managing on a fixed income, there are established frameworks for budgeting on a fixed income that can help allocate these proceeds wisely without sacrificing current stability.

How Your Tax Status Changes — and What to Do About It

The year a spouse dies, the surviving partner can still file as married filing jointly — and typically should, since this status offers the best tax rates. However, starting the following tax year, that option disappears. For most widowed individuals, this means shifting to “single” filing status, which compresses tax brackets and nearly eliminates the standard deduction advantage.

The Tax Bracket Squeeze

Under 2024 IRS tables, a married couple paying 22% in taxes begins that bracket at $94,301. A single filer hits 22% at just $47,151. This means the same income — say, $80,000 in retirement distributions and Social Security — faces a dramatically higher effective tax rate after the spouse’s death. Depending on income level, this transition can increase annual tax liability by $2,000 to $8,000.

Filing Status	10% Bracket Ends	22% Bracket Begins	24% Bracket Begins
Married Filing Jointly (2024)	$23,200	$94,301	$201,051
Single (2024)	$11,600	$47,151	$100,526
Qualifying Surviving Spouse (2 years)	$23,200	$94,301	$201,051

The Qualifying Surviving Spouse Status

Many widowed individuals do not know about the Qualifying Surviving Spouse tax filing status. For up to two years after the year of the spouse’s death, a widowed person with a dependent child can file at married-filing-jointly rates. This is a meaningful tax break that is widely overlooked. Confirm eligibility with a CPA immediately.

After those two years, strategic Roth IRA conversions become especially important. Converting traditional IRA funds to a Roth while income is relatively low — before required minimum distributions begin at 73 — can significantly reduce lifetime tax burden. This strategy is covered in depth in our guide to Roth IRA versus Traditional IRA decisions in your 50s.

Inherited IRA and Pension Rules for Surviving Spouses

Surviving spouses have more flexibility with inherited retirement accounts than any other type of beneficiary — and that flexibility comes with decisions that are both powerful and complex. The SECURE 2.0 Act, signed into law in December 2022, changed several key rules, so guidance from 2019 or earlier may be outdated.

The Spousal Rollover vs. Inherited IRA Election

When a spouse inherits an IRA, they have a unique choice that non-spouse beneficiaries do not: they can roll the account into their own IRA, treating it as their own. This is called a spousal rollover. Alternatively, they can keep it as an inherited IRA under the deceased’s name.

The right choice depends heavily on age. For someone like David at 58, doing a spousal rollover means the funds are now in his own IRA — but he cannot access them penalty-free until 59½. Keeping them as an inherited IRA allows penalty-free withdrawals immediately, using the “death of account owner” exception. However, keeping it as an inherited IRA may trigger earlier RMD requirements under certain conditions.

Option	Best For	Penalty-Free Access	RMD Start Age
Spousal Rollover	Surviving spouse over 59½ or no immediate need	After age 59½	Survivor’s own age 73
Inherited IRA (keep as-is)	Surviving spouse under 59½ needing funds now	Immediately (no 10% penalty)	Based on IRS rules for inherited accounts

Pension Survivor Benefits and Election Deadlines

If the deceased spouse had a pension, the survivor may be entitled to a survivor annuity — typically 50% to 100% of the pension amount. However, some pension administrators have strict election deadlines. Missing these windows can forfeit the survivor benefit entirely. Call the pension administrator within the first 30 days of the death and request all documentation immediately.

Building a Single-Income Investment Strategy

The investment strategy that made sense for a two-income household with two safety nets is almost certainly not the right strategy for a single person approaching retirement. The margin for error is narrower. The sequence-of-returns risk is higher. And the emotional relationship with money — now entirely solo — is fundamentally different.

Adjusting Asset Allocation After Loss

Most financial planners recommend a more conservative allocation shift as someone transitions from dual-income to single-income status. This does not mean abandoning equities entirely. But it does mean ensuring that at least 3-5 years of living expenses are in stable, accessible assets — so a market downturn does not force selling at a loss to meet living costs.

For those navigating bond allocation decisions in a high-inflation environment, our detailed analysis of bond allocation in retirement portfolios provides a useful framework for balancing stability and purchasing power.

Maximizing Catch-Up Contributions

The IRS offers significantly enhanced contribution limits for workers over 50. At 58, David qualifies for both standard and catch-up contributions across all eligible accounts. Maximizing these contributions between now and retirement is one of the most direct ways to close a savings gap.

Account Type	Standard Limit (2024)	Catch-Up (50+)	Total Possible
401(k) / 403(b)	$23,000	$7,500	$30,500
Traditional or Roth IRA	$7,000	$1,000	$8,000
SIMPLE IRA	$16,000	$3,500	$19,500
SEP-IRA (self-employed)	Up to $69,000	N/A	$69,000

If David contributes the maximum $38,500 annually ($30,500 to his 401(k) plus $8,000 to an IRA) for nine years until age 67, at a 7% average return, he could accumulate an additional $480,000+ in retirement assets. That is not a small number — it is potentially the difference between retiring with dignity and retiring with fear.

The Role of Robo-Advisors for Financial Beginners

For someone with no investment background, managing a portfolio can feel overwhelming. Robo-advisors like Betterment, Vanguard Digital Advisor, and Schwab Intelligent Portfolios offer low-cost, automated portfolio management with diversified index fund strategies. They are not perfect, but they are dramatically better than leaving money in a savings account.

Before committing, it helps to understand the trade-offs. Our comparison of robo-advisors versus hybrid financial advisors walks through the cost, control, and service differences in practical terms.

Healthcare and Long-Term Care Planning on One Income

For many surviving spouses, healthcare is the largest unplanned financial shock. If the deceased spouse provided employer health insurance, the survivor may have limited time — typically 60 days — to elect COBRA coverage or enroll in an alternative plan. COBRA premiums are often $600-$800 per month for individual coverage, and coverage only lasts 36 months.

The Gap Between 58 and Medicare at 65

At 58, David faces a seven-year gap before Medicare eligibility. During this period, he must secure health insurance independently. The Healthcare.gov marketplace offers subsidized plans for those whose income qualifies, and at $60,000-$70,000 in income, many widowed individuals find meaningful premium tax credits available under the Affordable Care Act.

The average annual healthcare cost for a 60-year-old on an ACA marketplace plan — including premiums, deductibles, and out-of-pocket expenses — ranges from $7,200 to $14,400 depending on plan tier and health status. This is a non-negotiable line item in every revised retirement plan.

Long-Term Care: The Retirement Destroyer Most People Ignore

Without a second person to provide informal caregiving, single retirees face substantially higher long-term care costs than couples. The median annual cost of assisted living in the United States is $54,000, while nursing home care averages $94,000-$108,000 per year according to the Genworth Cost of Care Survey. These costs are not covered by Medicare for most stays.

Long-term care insurance, hybrid life/LTC policies, and self-insurance through dedicated reserve accounts are the three primary strategies. At 58, premiums for standalone long-term care insurance are still manageable — typically $1,500-$3,000 per year for adequate coverage. Waiting until 65 can double or triple those premiums, or result in denial of coverage due to health conditions.

Finding the Right Financial Help Without Getting Exploited

Newly widowed individuals are among the most targeted demographics for financial predators. Commission-based advisors, annuity salespeople, and insurance agents frequently market aggressively to recently bereaved spouses. Understanding the difference between a fiduciary and a non-fiduciary is not optional — it is essential.

Fiduciary vs. Non-Fiduciary Advisors

A fiduciary is legally required to act in your best interest at all times. A non-fiduciary operates under a “suitability” standard — meaning they only need to recommend products that are “suitable” for your situation, not necessarily the best option. Many commission-based brokers and insurance agents are non-fiduciaries, even if they call themselves “financial advisors.”

The National Association of Personal Financial Advisors (NAPFA) maintains a database of fee-only fiduciary planners. These advisors charge by the hour or as a flat fee — they receive no commissions for recommending specific products. For complex situations like post-loss retirement rebuilding, a one-time comprehensive financial plan from a fee-only planner typically costs $2,000-$5,000 and can save multiples of that amount in avoided mistakes.

Grief-Informed Financial Counseling

A growing number of financial planners specialize in bereavement-informed planning — combining financial expertise with sensitivity to the cognitive and emotional realities of loss. Organizations like the Sudden Money Institute train advisors to work specifically with individuals who have experienced sudden financial transitions, including widowhood. Seeking out this type of advisor can make the process significantly more effective and less traumatic.

Your Revised Retirement Timeline

Rebuilding a retirement plan after spouse dies at 58 requires accepting that the timeline has changed — and then refusing to be defined by that change. Nine years between age 58 and a target retirement of 67 is enough time to make profound progress, especially with the right strategy and consistent execution.

Projecting What a Rebuilt Plan Can Look Like

Consider David’s situation: $300,000 in combined retirement savings, a $200,000 life insurance payout, and $70,000 per year in income. If he invests the insurance proceeds, maximizes catch-up contributions, delays Social Security survivor benefits until 67, and manages healthcare costs strategically through the ACA marketplace, his retirement picture shifts dramatically.

It is also worth reviewing how other individuals in similar situations have successfully navigated a compressed retirement timeline. Our profile of a postal worker who retired at 62 on a modest income demonstrates that disciplined planning — not a high salary — is the primary driver of retirement success.

Budgeting as a Foundation for the New Plan

Before any investment strategy can succeed, the underlying budget must be restructured to reflect one income. Many surviving spouses discover significant recurring expenses that can be reduced or eliminated — subscriptions, duplicate insurance policies, and services maintained for two that are now unnecessary. A thorough audit of hidden budget costs and recurring fees frequently reveals $200-$500 per month in recoverable cash flow that can be redirected toward retirement savings.

Your Action Plan

1. Collect All Financial Documents Within the First 2 Weeks

   Gather at least 10 certified copies of the death certificate. Locate all insurance policies, account statements, pension documents, tax returns for the last three years, Social Security cards, and any existing estate planning documents. Without these, you cannot take any meaningful financial steps. Store originals in a fireproof safe and make digital copies.

2. File Life Insurance Claims and Notify the SSA Immediately

   Contact every life insurance company within the first 30 days to begin the claims process. Simultaneously, call the Social Security Administration at 1-800-772-1213 to report the death and inquire about survivor benefits. Note your eligibility age (60 for survivor benefits) and begin planning your claiming strategy in advance.

3. Decide on the Inherited IRA Strategy Within 90 Days

   If your spouse had an IRA or 401(k), contact the account custodian immediately. Determine whether a spousal rollover or inherited IRA designation is more advantageous based on your age and immediate cash flow needs. Consult a CPA or CFP before making this election — it cannot be undone. If you are under 59½ and need access to funds now, maintaining an inherited IRA preserves penalty-free withdrawal rights.

4. Restructure Your Budget for Single-Income Reality

   Audit every recurring expense for relevance and necessity. Cancel duplicate subscriptions, review insurance policies for coverage that is no longer needed, and identify at least $200-$500 per month in redirectable cash flow. Build a new monthly budget that reflects your actual single-income situation and targets maximum retirement contributions. Use a budgeting tool that works for your style to stay consistent.

5. Maximize Catch-Up Retirement Contributions Starting Now

   If you are over 50, increase your 401(k) contribution to the maximum $30,500 and contribute $8,000 to a Roth or Traditional IRA annually. Even if you cannot immediately hit those levels, increase contributions incrementally every month. Every additional dollar invested at 58 has approximately nine years of compounding before a standard retirement age of 67 — meaningful growth is still possible.

6. Engage a Fee-Only Fiduciary Financial Planner

   Search NAPFA’s directory for a fee-only CFP in your area, ideally one with bereavement planning experience. Budget $2,000-$5,000 for a comprehensive financial plan that covers retirement projections, Social Security optimization, tax planning, and investment strategy. This investment almost always pays for itself multiple times over in tax savings, better claiming decisions, and avoided mistakes.

7. Develop a Social Security Claiming Strategy Before Age 60

   Map out both your own retirement benefit and your survivor benefit amounts. Use the SSA’s online estimator at ssa.gov to get projections. Determine whether the dual-claim strategy — claiming one benefit early and switching to the larger one later — maximizes your lifetime income. Have this conversation with your financial planner well before you are eligible to claim at 60.

8. Secure Healthcare Coverage and Start Planning for Long-Term Care

   If you lose employer-sponsored coverage, immediately explore COBRA, ACA marketplace plans, and any retiree health benefits from your own employer. At 58, also seriously evaluate long-term care insurance options while premiums are still manageable. Request quotes from at least three providers, focusing on hybrid life/LTC policies that provide a death benefit if care is never needed. Factor healthcare costs — estimated at $7,200-$14,400 per year until Medicare at 65 — into your retirement number from day one.

Frequently Asked Questions

Can I still retire comfortably if I’m starting to rebuild my retirement plan after my spouse dies at 58?

Yes — but it requires a realistic timeline and aggressive savings. At 58 with a target retirement age of 67, you have nine years of catch-up contribution windows, potential life insurance proceeds to invest, and Social Security survivor benefits that can significantly augment your income. Many people in this situation have successfully rebuilt toward a comfortable retirement, particularly those who engage professional financial guidance early and prioritize savings rate above all else.

How soon after my spouse dies can I claim Social Security survivor benefits?

You can claim Social Security survivor benefits as early as age 60, or age 50 if you are disabled. If you have dependent children under age 16, they may be eligible for survivor benefits immediately regardless of your age. Claiming before your full retirement age (66-67 depending on your birth year) permanently reduces your benefit by up to 28.5%, so the timing decision is significant.

Do I have to pay taxes on my spouse’s life insurance payout?

In most cases, no. Life insurance death benefits paid to a named beneficiary are generally exempt from federal income tax under IRC Section 101(a). However, if the proceeds are placed in an interest-bearing account, the interest earned is taxable. If your estate is the beneficiary rather than you personally, estate tax considerations may apply for very large estates over $13.61 million (the 2024 federal exemption).

What happens to my spouse’s 401(k) if I’m the beneficiary?

As the spouse beneficiary of a 401(k), you have the most flexible options of any beneficiary type. You can roll the funds into your own IRA, treating them as your own, or roll them into an inherited IRA. The critical decision depends on your age: if you are under 59½ and may need the funds before that age, an inherited IRA preserves penalty-free access. A spousal rollover is usually better for long-term tax deferral if you do not need immediate access.

How does my tax filing status change after my spouse dies?

In the year your spouse dies, you can still file as married filing jointly, which typically provides the best tax rates. For the following two years, if you have a dependent child living in your home, you may qualify for “Qualifying Surviving Spouse” status — which preserves married filing jointly tax brackets. After that, you file as single, which compresses your tax brackets significantly. Strategic Roth conversions during the low-income window after the death can reduce long-term tax liability.

Should I pay off my mortgage after receiving life insurance proceeds?

This is one of the most common questions — and there is no universal right answer. If your mortgage rate is 3-4% and you could earn 7%+ in a diversified portfolio, mathematically you are better off investing. If the mortgage is a source of significant psychological stress, paying it off provides real emotional value. Most financial planners recommend against liquidating all life insurance proceeds for debt payoff, as this eliminates the investment potential of a large, irreplaceable lump sum. Consider paying down high-interest debt (above 7%) while investing the remainder.

When should I update my beneficiary designations after my spouse dies?

Immediately. Beneficiary designations on retirement accounts, life insurance policies, and bank accounts supersede your will — meaning if you still have your deceased spouse listed as beneficiary, those assets could end up in probate or pass in unintended ways. Update designations on every account within the first 60 days. Also review any accounts that listed your spouse as a secondary beneficiary for other assets.

Do I need to hire a financial advisor, or can I do this myself?

Many of the ongoing investment management tasks — like maintaining a diversified portfolio through a low-cost robo-advisor — can be handled independently once you understand the basics. However, the one-time strategic decisions made in the first 12-24 months after a spouse’s death — Social Security claiming strategy, inherited IRA elections, tax filing optimization, and pension decisions — are complex enough that professional guidance almost always pays for itself. A one-time fee-only planning engagement ($2,000-$5,000) is strongly recommended even for those who plan to self-manage afterward.

What is the biggest financial mistake surviving spouses make?

Financial planners consistently cite two equal and opposite mistakes: doing nothing (leaving money uninvested, missing claim windows, delaying decisions) and doing too much too fast (liquidating investments, paying off all debt, making large gifts to family members). The ideal approach is to take only the time-sensitive actions in the first 90 days and defer all major strategic decisions for 6-12 months until emotional clarity returns and a qualified advisor is engaged.

How does losing a spouse affect my retirement plan after spouse dies if we had joint investments?

Joint brokerage accounts typically transfer to the surviving spouse via right of survivorship without probate. The cost basis for tax purposes is “stepped up” to the fair market value on the date of death for the deceased’s half (or the full account in community property states), which can significantly reduce capital gains taxes if you sell appreciated assets. Report this with your CPA to ensure you receive the full tax benefit of the step-up in basis.