When you look at your IRA/401k statement, have you ever wondered how much of that money is really yours?
Generally speaking, a distribution from an IRA/401k account is taxed at ordinary income rates (federal & state). Therefore, when you actually make a withdrawal from a tax-deferred accounts like IRAs/401k that total amount is reduced depending on current tax rates.
Say you have a $1 million dollar IRA balance……….
What portion of that amount is owed to the government and what remainder amount is yours?
If you have $1 million dollars and are taxed 20% federal and 5% state under current tax law you owe $250,000 to the government.
Have you accurately calculated your tax obligation to the government inside of all your #retirement accounts. You may be grossly overstating your assets available for retirement!!!
