Retirement Plan Tax-Traps

Retirement Plan Tax-Traps

Why are they smiling?



Retirement Plan Tax-Traps!

Did you know that without proper planning, Federal & State Income taxes, Estate and Inheritance taxes can take 65% or more of your retirement savings when you die?

$1,000,000 IRA, and Federal & State Income Taxes, Estate & Inheritance taxes could take $650,000 leaving $350,000 after taxes for your children. Is that what you had in mind?

You cannot fix this from the grave. You cannot fix this with your will. You need to take action now. Call me direct at 800-955-7898 to discuss solutions.

Retirement Plan Tax Trap Illustrated

  • You contribute $6,000 per year to 401(k) for 30 years, $180,000 in contributions.
  • “Tax savings” 25% tax bracket $45,000
  • Tax savings” 33% tax bracket $60,000


  • At 6.89% contributions grow to $600,000 in 30 years
  • At 8.31% contributions grow to $800,000 in 30 years


  • Tax on withdrawals 30 years later 40% tax bracket
    • $600,000 ——-$240,000 Federal Income Taxes
    • $800,000——- $320,000 Federal Income Taxes


“Tax Savings” were actually only tax deferral. $45,000 to $60,000 in deferral became $240,000 to $320,000 in actual tax liability. That is why Obama, Pelosi and Reid are smiling. They are from the Government and they are here to help you.

What should you do?       

Obama Pelosi and Reid believe it is OK for Government to take more than half your income while you are alive and half your assets when you die.
There are two systems of taxation in our country: one for the informed and one for the uninformed.

Honorable Learned Hand US Appeals Court Justice

  1. Call me direct at 800-955-7898 to discuss your situation
  2. Stop contributing to traditional IRAs, 401(k)s and 403(b) retirement plans. Redirect your contributions into Safe Income Strategy #3, which will grow your money tax Free.
  3. If you are getting a company match on your 401(k) retirement plan, only contribute enough to get the match, this is free money. Redirect the excess to Safe Income Strategy #3.
  4. For money already in a traditional IRA, 401(k) or 403(b) retirement plan, rolling the money into a properly structured IRA using Safe Income Strategy #2, could stretch the tax liability over multi-generations, possibly tripling the money available to your family.

Three Safe Income Strategies

  • Focused on Keeping your money safe

  • Generating a steady dependable income stream you can count on

  • Paying more than Bank CDs, Money Markets and Treasuries

  • Without the downside risk and volatility of stocks, bonds and mutual funds.

The Safe Income Strategies work.

  • During the Financial Melt down of 2008 & 2009, none of our clients lost money due to market volatility with these strategies.

  • There Capital was secure and their Income was steady and dependable.




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