CALCULATE YOUR IDEAL NUMBER
One of the keys to paying the least amount of tax in retirement is to have just the right amount of money in tax-deferred accounts like your 401(k) and IRA when you reach retirement. This is called your ‘Ideal Number’.
Having this ideal amount of money in your pre-tax accounts allows you to take advantage of your standard deduction (the amount of money you don’t have to pay tax on each year) and stay under the IRS thresholds that trigger taxes on things like your Social Security and Medicare. The rest of your retirement savings should be in tax-free type accounts like Roth accounts.
For most people, it is a myth that taking deductions during your working years by putting money into traditional, tax-deferred accounts will save you money on taxes in the long run. The IRS has cleverly designed a system that will line their pockets with your hard earned money in retirement. Learn how to turn the tables on the IRS and pay them the least amount possible with ‘Divorce The IRS”.
CALCULATE NOWDEFUSE YOUR
BIGGEST TAX TIME BOMBS!
Your tax-deferred retirement account is a tax time bomb waiting to go off.
401(k)s. IRAs. You think you’re saving money on taxes. But what you’re probably doing is accepting a loan from the IRS—a loan with terrible terms that will come due when you need your money the most: in retirement!
With traditional retirement plans, the IRS has designed a tax system that entices you to do exactly what it wants you to do: line its coffers with your money. Millions of people end up wishing they had understood the tax traps earlier—only discovering the harsh financial reality when it’s far too late.
Don’t wait. Understand the IRS tax time bombs now, while there’s still time to defuse them.
Divorce the IRS: How to Defuse Your Biggest Tax Time Bombs Before You Retire will show you exactly how to avoid or defuse those time bombs, step by step, so you can make the rules work in your favor and turn the tables on the IRS.
HOW TO DIVORCE THE IRS VIDEO SERIES
Don’t feel like reading? Watch the video series instead!
Watch by Chapter:
- Watch the Official Book Trailer, 1st edition
- Watch the Official Book Trailer, 2nd edition
- An Introduction
- Are You Borrowing from the IRS?
- The Myth of Lower Taxes in Retirement
- Tax Time Bomb 1: Early Withdrawal Penalties
- Tax Time Bomb 2: Exploding Tax Rates
- Tax Time Bomb 3: Social Security
- Tax Time Bomb 4: Medicae Premiums
- Tax Time Bomb 5: Required Minimum Distributions
- Tax Time Bomb 6: Outliving Your Spouse
- Tax Time Bomb 7: Paying Taxes from the Grave
- Tax Time Bomb 8: Tax Rates Going Up
DIVORCE THE IRS PODCAST
Taxes and retirement in the U.S. can feel overwhelming, and hidden tax traps, confusing rules, and everyday decisions quietly cost people more than they realize.
Go behind the scenes with financial planner, author, and speaker Jimmy Miller to learn how the tax system really works, how to keep more of your money, and how to build a tax-efficient retirement plan. Subscribe so you don’t miss an episode.
JIMMY MILLER, CRPC®
Born in Zambia, married to a German, and having spent most of his life as an expat, James Miller, CRPC, is no stranger to untangling complicated tax issues. He and his family enjoy international travel, sailing, mountaineering, and spending time with those they consider true friends.
The founder of Baobab Wealth & Baobab Wealth Abroad, James helps Americans and cross-border families around the world to create real wealth for themselves and their families in tax-efficient ways—so they can maximize their own dreams in life and beyond.
BOOK REFERENCES & OTHER INFORMATION
(First Edition Only)
- The Tax Foundation (www.taxfoundation.org).
- Tax Freedom Day 2019 is April 16th (https://files.taxfoundation.org/20190416201309/Tax-Freedom-Day-2019-2.pdf).
- The 4 Percent Rule (https://www.investopedia.com/terms/f/four-percent-rule.asp).
- Fact Sheet, Social Security (https://www.ssa.gov/news/press/factsheets/basicfact-alt.pdf).
- A Brief History of Taxes in the U.S. (https://www.investopedia.com/articles/tax/10/history-taxes.asp).
- Income Taxes and Your Social Security Benefit (https://www.ssa.gov/benefits/retirement/planner/taxes.html).
- Online calculator to help determine how much Social Security tax you may owe (https://www.fool.com/retirement/social-security/).
- A two-minute video about the Social Security Tax time bomb.
- Income Taxes on Social Security Benefits paper by Patrick J. Purcell (https://www.ssa.gov/policy/docs/issuepapers/ip2015-02.html).
- 2020 Medicare Costs (https://www.medicare.gov/Pubs/pdf/11579-medicare-costs.pdf).
- Part D costs for those with higher incomes (https://www.medicareinteractive.org/get-answers/medicare-prescription-drug-coverage-part-d/medicare-part-d-costs/part-d-costs-for-those-with-higher-incomes).
- Required Minimum Distributions (RMDs) (https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-topics-required-minimum-distributions-rmds).
- IRA required minimum distributions table 2020 (https://www.bankrate.com/retirement/ira-rmd-table/).
- Calculating your ideal number (ttps://www.baobabwealth.com/Ideal-Number).
- Federal Income Tax Calculator (https://smartasset.com/taxes/income-taxes#fN7EEwZVCP).
- Passive Foreign Investment Company (PFIC) (https://www.investopedia.com/terms/p/pfic.asp#:~:text=A%20passive%20foreign%20investment%20company%20(PFIC)%20is%20a%20corporation%2C,related%20to%20regular%20business%20operations).
- Tax reporting requirements for PFICs (https://www.irs.gov/instructions/i8621).
- International Individuals (https://www.irs.gov/individuals/international-individuals).
- Resident Aliens (https://www.irs.gov/individuals/international-taxpayers/resident-aliens).
- Non-resident Aliens (https://www.irs.gov/individuals/international-taxpayers/nonresident-aliens).
- Substantial Presence Test (https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test).
- Report of Foreign Bank and Financial Accounts (FBAR) (https://www.irs.gov/businesses/small-businesses-self-employed/report-of-foreign-bank-and-financial-accounts-fbar#:~:text=Report%20of%20Foreign%20Bank%20and,of%20the%20United%20States%20Government).
- Foreign Account Tax Compliance Act (FATCA) (https://www.irs.gov/businesses/corporations/foreign-account-tax-compliance-act-fatca).
- FBAR Penalties: When Will IRS Let You Off with a Warning? (https://www.forbes.com/sites/robertwood/2012/06/04/fbar-penalties-when-will-irs-let-you-off-with-a-warning/?sh=2b483608363c).
- Passive Foreign Investment Company (PFIC) (https://www.investopedia.com/terms/p/pfic.asp#:~:text=A%20passive%20foreign%20investment%20company%20(PFIC)%20is%20a%20corporation%2C,related%20to%20regular%20business%20operations).
- Tax reporting requirements for PFICs (https://www.irs.gov/instructions/i8621).
- Mutual Funds (https://www.investor.gov/introduction-investing/investing-basics/investment-products/mutual-funds-and-exchange-traded-1).
- Totalization Agreements (https://www.irs.gov/individuals/international-taxpayers/totalization-agreements).
- Tax Treaties (https://www.irs.gov/individuals/international-taxpayers/tax-treaties#:~:text=The%20United%20States%20has%20income,sources%20within%20the%20United%20States).
- Calculating your ideal number (www.baobabwealth.com/Ideal-Number).
- Fiduciary financial tax advice and planning (www.baobabwealth.com).