Divorce the IRS

What if one of the best retirement accounts in America isn't a Roth IRA or 401(k), but a Health Savings Account (HSA)? In Episode 37 of the Divorce the IRS Podcast , Jimmy explains why an HSA may be one of the most overlooked tax-advantaged retirement planning tools available. Unlike a Roth IRA, an HSA can offer three separate federal tax advantages: tax-deductible contributions, tax-free inv...

Moving to the United States for work can create financial opportunities, but it can also introduce tax and investment rules you may have never encountered before. In Episode 36 of the Divorce the IRS Podcast , Jimmy explains some of the financial issues foreign nationals should understand when living and working in America, including reporting foreign accounts, FBAR requirements, PFIC investments,...

Can moving your investments overseas help you escape U.S. taxes? For American citizens and green card holders, the answer isn't as simple as moving money to Switzerland, Malta, Cyprus, the Isle of Man, or another supposedly tax-friendly jurisdiction. In Episode 35 of the Divorce the IRS Podcast , we wrap up our series on living, working, and retiring abroad by looking at one of the biggest in...

Living overseas can create tax-planning opportunities that simply aren't available while you're living in the United States, especially when it comes to Roth conversions. In Episode 34 of the Divorce the IRS Podcast , we continue our conversation about living, working, and retiring abroad by exploring Roth conversion strategies Americans overseas may be able to use to reduce their future...

Thinking about living, working, or retiring overseas? Moving abroad may change your lifestyle dramatically, but it doesn't mean leaving the IRS behind. In Episode 33 of the Divorce the IRS Podcast , we explore some of the most important financial and tax-planning considerations for Americans living abroad, as well as those considering making the move. Whether you're retiring overseas, wo...

If you're expecting a pension in retirement, your strategy for divorcing the IRS may look very different from someone relying primarily on Social Security and investments. In this episode of the Divorce the IRS Podcast , we wrap up our three-part case study series by looking at how taxable pension income affects your Ideal Number and the amount you may want to keep in tax-deferred retirement...

Welcome back to Episode 31 of The Divorce the IRS Podcast . In this episode, Jimmy Miller walks through the second retirement planning case study from Divorce the IRS . Unlike the first case study, this one follows a couple who are much closer to retirement and have already accumulated most of their wealth inside traditional pre-tax retirement accounts. Meet Bob and Helen. They're both 50 yea...

In this episode of the Divorce the IRS Podcast , Jimmy Miller begins a new three-part case study series showing how the concepts discussed throughout the podcast can work in real life. This first case study focuses on Mary, a fictional saver who starts making smart retirement planning decisions at age 30. By using Roth accounts, taking advantage of her employer match, and carefully managing withdr...

In this episode of the Divorce the IRS Podcast , Jimmy Miller discusses a retirement philosophy that has become increasingly popular: die broke, also known as die with zero. The idea behind this strategy is to maximize retirement income and enjoy more of your money during your lifetime, especially when leaving a financial legacy is not a major goal. Jimmy explains why the concept can make sense in...

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...