New report exposes 3 IRA and 401K mistakes that could cost you a fortune
Have you saved at least $200,000 in IRAs and 401Ks? And are you counting on this to help you pay for retirement?
If you’ve ever worried that it won’t be enough, you’re not alone.
According to the latest study from Allianz Life, 64% of Americans fear running out of money more than they fear death itself,
That’s two out of every three of your friends, neighbors, relatives, and total strangers – maybe even you – who are afraid they will outlive their savings. That makes sense, because nobody wants to be 85 years old, full of life, and flat-broke.
The bad news: If you make certain mistakes with your IRA or 401K accounts, you could end up making your worries come true, by draining your savings a lot faster than you have to.
The good news: A new report titled “3 IRA and 401K Mistakes That Could Cost You A Fortune” could help you avoid these critical mistakes. And you can get this report free from Utah’s B.O.S.S. Retirement Solutions, by clicking here.
To learn how this free report could help your IRA or 401K go further in retirement, we reached out to retirement experts Ryan Thacker and Tyson Thacker, from B.O.S.S. Retirement Solutions.
Saving money in an IRA or 401K is easy. Withdrawing this money in retirement is complicated and riddled with trap doors.
–Ryan Thacker, B.O.S.S. Retirement Solutions
Traditional IRAs and 401Ks are tax-deferred. By contributing a portion of your paychecks to these accounts, you were able to put off paying taxes on that money. And you didn’t have to pay taxes on the growth of your investments either.
But what most people don’t realize is that they’re simply kicking the can down the road. Uncle Sam is eager to get his hands on that money. And you’ll be required to fork over taxes on every dollar you withdraw in retirement, including taxes on all the growth between now and then. If you’re not careful, those taxes may be far more than you thought possible.
But there’s good news. Because you have more control over the amount of taxes you pay in retirement than any other time in life. For some good savers, making the right decisions here could help you save tens of thousands – even hundreds of thousands of dollars in needless taxes.
You’re sitting on a retirement tax time bomb – and you may not even know it.
–Tyson Thacker, B.O.S.S. Retirement Solutions
Many retirees end up sitting on a tax time bomb as an unfortunate consequence of following the so-called “best practices” of the tax preparation industry.
A tax preparer sees it as their job to minimize your taxes this year. And so they’ll typically recommend you max out your retirement savings in these tax-deferred IRAs and 401Ks.
But tax-deferred doesn’t mean no taxes – it just means you pay taxes later. And you don’t just pay taxes on the amount you contributed. You also pay taxes on all the growth of that money from day one.
When you withdraw this money in retirement, the IRS considers all of this money as ordinary income.
For some good savers, these withdrawals can force them into the highest tax bracket, paying the biggest tax bills of their entire lives. Especially when Required Minimum Distributions (RMDs) kick in at age 73.
Not only that, this retirement tax time bomb could also trigger taxes on up to 85% of your Social Security benefits. And it could even double your Medicare premiums.
It’s not your fault. You got here by following the best recommendation of the tax preparation industry. But there are things you can do about it.
Taking advantage of retirement tax planning strategies could be the largest opportunity to grow your retirement savings today.
–Ryan Thacker, B.O.S.S. Retirement Solutions
When an advisor from B.O.S.S. Retirement Solutions sits down with a client, they often discover three common IRA and 401K mistakes that could needlessly lead to overpaying your taxes.
But if you can know and understand these mistakes before you withdraw your first dollar, you could potentially save yourself a small fortune in taxes.
In some cases, you may want to take your money out of tax-deferred IRAs and 401Ks altogether.
You would do this by converting some or all of your savings from your IRAs or 401Ks into a tax-free Roth account. Yes, you have to pay taxes on the amount you convert, and a good tax planner could help you minimize those taxes. But once the money is converted to a Roth, you never have to pay taxes on that money – or its growth – ever again.
“For many people, converting your traditional IRA or 401K into a Roth could be a windfall of tax savings in retirement.”
– Tyson Thacker, B.O.S.S. Retirement Solutions
Nobody really wants to overpay on taxes in retirement. But certain mistakes with your IRA or 401K could easily add up to 6-figures in unnecessary taxes throughout a 20 or 30-year retirement.
The first step to avoiding these mistakes is to learn exactly what they are, and the retirement tax planning strategies that could save you a fortune..
To help you fully understand these mistakes and the strategies available to you, B.O.S.S. Retirement Solutions is now offering a free report, “3 IRA and 401K Mistakes That Could Cost You A Fortune” for Utah residents.
This free report exposes these common, costly IRA and 401K mistakes, and how you could avoid them. Ultimately, this could help your hard-earned savings go a lot further in retirement.
Download “3 IRA and 401K Mistakes That Could Cost You a Fortune” here.
About the Authors: Tyson Thacker and Ryan Thacker are the CEO and President of B.O.S.S. Retirement Solutions. They are published authors of the book, The B.O.S.S. Retirement Blueprint, and are frequently featured on NBC, CBS, and ABC TV, and on local radio stations. B.O.S.S. Retirement Solutions has helped over 50,000 families make informed decisions on planning for retirement, including strategies for minimizing taxes, making the most of their IRAs and 401Ks, and maximizing their Social Security benefits. They are a 10-time winner of Utah Best of State Awards and have seven offices located throughout the Wasatch Front.
This is for illustrative purposes only, results may vary. Advisory services offered through B.O.S.S. Retirement Advisors, an SEC Registered Investment Advisory firm. Insurance products and services offered through B.O.S.S. Retirement Solutions. The information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual’s situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor. BOSS submitted applications and paid application fees to be considered for the Utah Best of State for Retirement Planning awards. The award results were independently determined by the awarding organization’s criteria (https://www.bestofstate.org/about.html) and the information BOSS provided in the applications. BOSS received the Utah Best of State award in 2019, 2020, 2021, 2022, 2023, and 2024. Our firm is not affiliated with the U.S. government or any governmental agency. Marketing materials provided by Infinity Marketing Services.