3 expensive IRA and 401K mistakes …

Having an IRA or 401K is pretty straightforward, right?

You fill out some forms; pick your investments, and make automatic contributions.

Maybe you’re lucky enough to get a coveted employee match.

But as it turns out …

Saving money in a tax-deferred account is the easy part.

But withdrawing this money in retirement gets very complicated.

Unfortunately, this is where millions of Americans make critical mistakes.

Below are 3 common mistakes with your IRA or 401K you want to avoid at all costs …

#1: Withdrawing money without a tax strategy

You want to think of the money in your IRA and 401K as being your money.

But remember, you still have to pay taxes when you withdraw this money in retirement.

How and when you withdraw this money could ultimately determine how much you’ll pay the IRS, versus how much you get to keep in your pocket. Plus, it could trigger higher taxes on your social security income, and double your Medicare premiums.

So you don’t want to blindly withdraw money from your retirement accounts without carefully considering how it could impact your taxes, social security, Medicare and more.

#2: Not consistently updating and rebalancing your investments

When was the last time you updated or rebalanced the investments inside your IRA or 401K?

For many people, it’s been years, if not longer. So, your portfolio could be totally out of whack. And you could be taking on far more risk (or far too little) than you realize, or need to at this stage of the game.

Rebalancing your investments at least once a year and/or with any major event is critical to protecting your wealth.

#3: Not converting your traditional IRA or 401K to a ROTH

A traditional IRA or 401K allows tax-free contributions. It helps you reduce your taxes while you’re earning an income.

On the other hand, a ROTH doesn’t allow tax-free contributions, but you pay zero tax when you withdraw money in retirement. And you don’t have to deal with Required Minimum Distributions. That means tax-free growth, and flexibility when it comes to your withdrawal strategy.

For many people, converting a traditional IRA or 401K to a ROTH could result in a windfall of tax savings in retirement.

To learn more about how you could make the most of your IRA, 401K, or any other tax-deferred accounts, check out the three options below.


Whenever you’re ready, here are 3 ways we could help you make the most out of your IRA. 401K and other taxed-deferred retirement accounts…

  1. Watch an on-demand, online discussion about different pillars of retirement planning. Click HERE.
  2. Please join us for one of our upcoming free, educational events about planning for retirement. Check out our next events HERE.
  3. To learn how you could dramatically reduce or eliminate the taxes on your IRA or 401K, schedule a free Retirement Tax Analysis with one of our fiduciary advisors by calling (801) 682-1493.

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. Our firm is not affiliated with the U.S. government or any governmental agency. Please note that we are unable to accept any trade requests via email, voice message or text.



Leave a Comment

Ready to Take The Next Step?

For more information about any of the products and services listed here, schedule a meeting today or register to attend a seminar.

Or give us a call at 801.990.5055