If you withdraw $20,000 from your 401(k)… how could the IRS end up taxing you like you took out $37,000?
It sounds impossible, but it happens when you turn on retirement income in the wrong order. In this video, we break down 401(k) vs Social Security vs Stocks and other taxable assets and the claiming order that can help you avoid common retirement tax traps—especially the infamous Social Security “tax torpedo”, the RMD Avalanche, Medicare IRMAA surcharges, and other income stacking surprises that catch retirees off guard.
The order you withdraw income in retirement dramatically impacts your finances and the taxes you pay. This video explores key retirement withdrawal strategy choices, including how to handle brokerage accounts and pension income, especially before required minimum distributions (RMDs) kick in. Learn about the “Golden Window” for tax planning and how roth conversions can optimize your taxes in retirement. We also discuss tax traps like Net Investment Income Tax and how combined income affects Social Security benefit taxation.
In this episode you’ll learn:
✅ Why the “popular” claiming orders can backfire
✅ The 4 hidden triggers that create “phantom taxable income” and hit your retirement tax situation like a ton of bricks
✅ A simple decision tree to help you choose the right order for your retirement
✅ How to maximize the “Golden Window” when you first retire so you can have a “Golden Retirement” later on.
