Education

Where do your retirement savings live?

Every dollar you save lives somewhere. How it’s taxed going in, while it grows, and when it comes out decides the income you actually keep. Select each bucket to see how it is taxed.

Qualified Money: 401(k)s, 403(b)s, traditional IRAs

In most cases, contributions go in pre-tax and grow tax-deferred, but every withdrawal is taxed as ordinary income, at whatever rates are in effect when you retire. Required minimum distributions start whether you need the money or not.

The key question

Is the cost of tax greater than the cost of insurance?

A $1,000,000 traditional 401(k) is not the same as $1,000,000 in tax-free assets. Taxes in retirement can quietly take 20–35% of every withdrawal. Diversifying how your money is taxed matters as much as diversifying where it’s invested.

Assets held in retirement plans

  • Qualified plans: 401(k), 403(b), pensions
  • IRAs: Traditional, SEP, or SIMPLE
Distributions typically taxed at ordinary income rates (max 37%*)

Assets held outside retirement plans

  • Stocks
  • Mutual funds
  • Real estate
Earnings typically taxed at capital gains rates (max 20%*)

Often overlooked retirement assets

  • Roth IRA
  • Municipal bond interest
  • Cash-value life insurance
Distributions typically income-tax free. Possibly the only asset that allows first-in, first-out access, and the flexibility that comes with it

* Top federal marginal rates in effect for 2026. Rates are set by federal law and can change. Source: irs.gov. Simplified summary for education. Individual tax treatment varies. We’ll walk through yours together.

Interactive · Your IRA today

Three pathways, three very different outcomes

Every IRA follows one of three broad paths. Select each one to see what happens during your life, after you pass, and where the money ultimately goes.

IRA Strategy Optimizer

How much of your IRA is actually yours?

A traditional IRA carries a built-in tax bill that most statements never show. Set your numbers and see it, then let’s talk about the pathways above.

Educational illustration under simplified assumptions. Not tax advice or a projection.

Your age55
IRA value$500,000
Expected tax rate25%
Life expectancy85
Built-in tax bill at your assumptions$125,000

Analyze my strategy

Guides

Short reads, real answers

Life insurance

How much coverage does your family actually need?

A worksheet that beats the rules of thumb.

Read the article → Disability

Your paycheck is your biggest asset. Is it insured?

What group coverage at work does, and doesn’t, protect.

Read the article → Retirement

The three tax buckets, explained with one dinner-table story

Taxable, tax-deferred, tax-free, and why the mix decides your retirement income.

Read the article →

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