Divorce the IRS

In this episode of the Divorce the IRS Podcast , Jimmy Miller continues the conversation from last week’s episode on the FIRE movement by taking a closer look at real estate investing and how it fits into the Divorce the IRS framework. Real estate is one of the most common investment topics Jimmy gets asked about. How does it compare to the stock market? Can it work as a retirement income strategy...

In this episode of the Divorce the IRS Podcast , Jimmy Miller breaks down the F.I.R.E. movement, which stands for Financial Independence Retire Early, and explains why the concepts in Divorce the IRS can be especially useful for people who want to retire before the traditional retirement age. Jimmy discusses why Roth accounts can be such a powerful tool for early retirees, including how Roth IRA c...

Welcome back to The Divorce the IRS Podcast . In this episode, we build on the previous conversation about life insurance retirement plans and take a closer look at one of the most overlooked details in many index-based insurance products: dividends. This is not an anti-IUL or anti-annuity episode. Fixed index annuities and indexed universal life policies can have a place for the right person when...

Many retirees and high-income earners are constantly searching for ways to build more tax-free income in retirement. One strategy that often enters the conversation is the Life Insurance Retirement Plan, better known as a LIRP.  Proponents often market LIRPs as a powerful way to create tax-free retirement income while maintaining life insurance protection. But are they really as good as advertised...

Many people spend years building up money inside their 401(k), only to discover that accessing those funds before age 59½ can trigger a costly 10% early withdrawal penalty. Fortunately, there are exceptions. In this episode of The Divorce the IRS Podcast , we break down one of the most important retirement planning rules for early retirees: the Rule of 55. This IRS exception allows certain workers...

Most people assume that if they access retirement accounts before age 59½, they’ll automatically face a 10% early withdrawal penalty. That’s not always true. In this episode of The Divorce the IRS Podcast , we break down one of the most overlooked retirement tax strategies available today: the 72(t) strategy, also known as SEPP (Substantially Equal Periodic Payments). This IRS-approved strategy al...

LISTEN TO THE IDEAL NUMBER EPISODE: https://www.buzzsprout.com/2565788/episodes/19096145 CALCULATE YOUR IDEAL NUMBER: https://baobabwealth.com/ideal-number/ One of the biggest questions in retirement tax planning is whether it makes sense to pay taxes now instead of later. For many people, the answer may be yes. In this episode of The Divorce the IRS Podcast , we break down Roth conversions and wh...

One of the biggest misconceptions in retirement planning is the idea that high earners are locked out of Roth IRAs forever. They’re not. In this episode of The Divorce the IRS Podcast, we break down one of the most powerful advanced Roth strategies available today: the Mega Backdoor Roth. This strategy allows certain investors to move significantly larger amounts of money into Roth accounts throug...

One of the biggest misconceptions in retirement planning is the idea that high earners are locked out of Roth IRAs forever. They’re not. In this episode of The Divorce the IRS Podcast , we break down one of the most widely used advanced Roth strategies available today: the backdoor Roth IRA. The backdoor Roth strategy gives higher income earners a legal pathway to move money into Roth accounts, ev...

Most people know Roth accounts are “tax-free.” But very few people actually understand the rules that make them so powerful. In this episode of The Divorce the IRS Podcast , we continue building on the concept of the “ideal number” and explore one of the most important wealth-building tools available: the Roth IRA. We break down the key Roth IRA rules everyone should understand, including contribu...

Most people think the key to lowering taxes in retirement is simple: use Roth accounts. But what if the real strategy is more nuanced than that? In this episode of The Divorce the IRS Podcast , we break down one of the most important concepts in retirement tax planning: finding your “ideal number” in tax-deferred accounts and using a combination strategy to minimize taxes over your lifetime. While...

What happens to your money after you pass away? For many families, the answer is more complicated and more costly than expected. In this episode of The Divorce the IRS Podcast , we break down the final tax time bomb, often described as paying taxes from the grave. It is a hidden risk that can leave your heirs with a significant tax burden, even if your intentions were to pass along as much wealth...

What happens to your taxes when one spouse passes away? For many couples, the answer is surprising and costly. In this episode of The Divorce the IRS Podcast , we break down one of the most overlooked risks in retirement planning, often called the widow’s or widower’s penalty. It is a tax shift that can increase your tax burden even as your income declines, creating a difficult financial situation...

In this episode of The Divorce the IRS Podcast , we continue our series on retirement tax time bombs by breaking down one of the most overlooked triggers of higher taxes later in life—Required Minimum Distributions (RMDs). While many retirees assume they can leave their tax-deferred accounts untouched for as long as they’d like, the reality is very different. Once you reach age 73, the IRS require...

In this episode of The Divorce the IRS Podcast , we continue our series on retirement tax time bombs with a surprise many people encounter around age 65— Medicare premium surcharges . While many assume Medicare is free, the reality is far more complex. Your premiums for Medicare Part B and Part D are based on your income, and for higher earners, those costs can increase significantly. These surcha...

In this episode of The Divorce the IRS Podcast , we continue our series on the retirement tax time bombs that can quietly increase your tax bill later in life. Today’s focus is Tax Time Bomb #4: Social Security taxation . Many retirees assume that once they begin collecting Social Security, the income will simply supplement their retirement savings. But depending on how your income is structured i...

Many people spend decades building their retirement savings, believing the money in their IRA or 401(k) will fully belong to them once they stop working. But when retirement finally arrives, many retirees discover a difficult truth: a significant portion of those savings was never fully theirs to begin with. In this episode of The Divorce the IRS Podcast , we explore the third major tax time bomb...

Withdrawing from your retirement account may seem like a quick solution when life throws you a curveball. But what if that decision quietly costs you far more than you realize, both today and decades into the future? In this episode of The Divorce the IRS Podcast , we break down the second major tax time bomb: early withdrawal penalties . While retirement accounts like 401(k)s and IRAs offer valua...

Getting a tax deduction today feels responsible. But what if the bigger risk to your retirement is not how much you are paying in taxes now, but how much you might be forced to pay later? In this episode of The Divorce the IRS Podcast , we begin breaking down the first of eight major tax time bombs that can quietly threaten your long-term financial plan: exploding tax rates. Over the past several...

Getting a tax deduction today feels smart. But what if the strategy you’ve been told will “save you money” is quietly setting you up to pay far more over your lifetime? In this episode of The Divorce the IRS Podcast , we tackle one of the biggest myths in retirement planning: the belief that you’ll automatically be in a lower tax bracket when you retire. It sounds logical. You stop working, your i...

Getting a big tax refund feels good. But what if that short-term win is quietly costing you far more over your lifetime? In this episode of The Divorce the IRS Podcast , we explore why common tax advice — even from well-meaning professionals — may not be aligned with your long-term financial best interest. Most tax preparers are trained to focus on one goal each year: helping you get the largest l...

Most young professionals are unknowingly setting themselves up for higher taxes later in life. In this episode of The Divorce the IRS Podcast , we break down one of the biggest financial planning mistakes early-career workers make — prioritizing traditional, tax-deferred retirement accounts over Roth options when they are likely in the lowest tax bracket they’ll ever see. When you first enter the...

In this episode of The Divorce the IRS Podcast , we break down a retirement planning idea that most people misunderstand: the so-called “tax deduction” you get when contributing to tax-deferred accounts like traditional IRAs and 401(k)s. What if those deductions aren’t really deductions at all—but small loans from the IRS that come due later? We start by revisiting the three tax buckets—Tax Me Now...

In this episode of The Divorce the IRS Podcast , we break down one of the most important concepts in tax-smart investing: the three tax buckets. Every account you own falls into one of these categories—Tax Me Now (taxable), Tax Me Later (tax-deferred), or Tax Me Never (tax-free). Understanding which bucket your money lives in can have a massive impact on your taxes in retirement. We start with the...

In this episode of The Divorce the IRS Podcast , Jimmy Miller tackles one of the most damaging tax myths in America, the belief that earning more money can actually make you worse off. After more than two decades of working with clients, Jimmy has seen how deeply misunderstood our tax system really is, and how that confusion leads people to avoid raises, overtime, and smart income opportunities ou...