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 years old, earn solid incomes, have diligently saved for retirement, and have accumulated $1.5 million in traditional retirement accounts. Like many successful savers, they've done everything they thought they were supposed to do. But they also have a problem they don't yet realize: a future retirement filled with unnecessary taxes.

Jimmy breaks down the step-by-step strategy they use to gradually transform their retirement plan over the next 15 years, showing how thoughtful tax planning can dramatically improve retirement income, reduce lifetime taxes, and create far greater flexibility.

In this episode, you'll learn:

• Why traditional retirement accounts can become future tax liabilities
• How Roth 401(k) contributions can change a retirement plan
• When Roth conversions may make sense
• Using after-tax contributions to build tax-free wealth
• How a 72(t) strategy can create early retirement flexibility
• Why paying taxes today can sometimes save significantly more later
• Coordinating Social Security with Roth withdrawals
• Reducing or eliminating Required Minimum Distribution problems
• Charitable giving strategies using RMDs
• How surviving spouses can avoid the "widow's tax penalty"
• Why retirement tax planning should be viewed over a lifetime, not one tax year at a time

By the end of this case study, Bob and Helen have transformed their retirement from one heavily dependent on taxable income into one that generates substantially more spendable income while dramatically reducing what they pay the IRS. According to Jimmy's analysis, the strategy ultimately saves them more than $800,000 in federal taxes over retirement compared to staying on their original path.

This episode demonstrates one of the central themes of Divorce the IRS: retirement isn't just about accumulating assets. It's about deciding which accounts you'll spend from, when you'll pay taxes, and how to keep more of what you've worked so hard to build.

If you've accumulated significant savings in traditional IRAs or 401(k)s and are approaching retirement, this case study offers a practical framework for thinking differently about lifetime tax planning.

Listen now to learn how strategic Roth conversions, tax bracket management, and coordinated retirement income planning can potentially save hundreds of thousands of dollars over the course of retirement.

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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 withdrawals in retirement, Mary creates a strategy designed to keep her in the 0% tax bracket throughout retirement.

Jimmy walks through how Mary contributes to a Roth 401(k), receives a traditional 401(k) employer match, funds a personal Roth IRA, and allows those accounts to grow over 30 years. He then explains how Mary structures her income in retirement using Roth withdrawals, traditional IRA withdrawals, Social Security, the standard deduction, and required minimum distribution planning.

In this episode, Jimmy discusses:

• Why starting early can make a tax-free retirement much easier to achieve
• How Roth 401(k) contributions can build future tax-free income
• Why employer matching contributions usually go into a traditional pre-tax account
• How Mary saves 15% of her income each year for 30 years
• How her accounts grow to more than $2.2 million by age 60
• Why Roth accounts can provide flexibility in early retirement
• How the standard deduction can help offset traditional IRA withdrawals
• Why provisional income matters when Social Security begins
• How Mary keeps her Social Security benefits from becoming taxable
• What happens when required minimum distributions begin at age 73
• How QLACs and charitable giving may help manage future RMDs
• Why saving taxes while working may not be worth paying much more in retirement

Jimmy also compares Mary’s Roth-focused strategy to friends who followed conventional tax-deferral advice. While Mary gave up tax deductions during her working years, her retirement income was structured to remain tax-free, while her friends ended up owing significantly more in retirement taxes.

In the next episode, Jimmy will look at another case study involving a couple closer to retirement who already has more than their ideal amount saved in tax-deferred accounts.

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• Visit Baobab Wealth
• Visit Baobab Wealth Abroad
• Buy a copy of Jimmy's book, Divorce the IRS
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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 theory, but why trying to personally spend your portfolio down to zero without guarantees can create serious risks.

Jimmy also explains how the die broke philosophy can work together with the Divorce the IRS framework when lifetime income annuities are used properly, especially inside Roth IRA accounts.

In this episode, Jimmy discusses:

• What the die broke or die with zero philosophy means
• Why the concept appeals to many retirees and future retirees
• The danger of becoming too frugal and never enjoying your money
• Why aiming for exactly zero can be risky without the right structure
• How lifetime income annuities can support a die broke strategy
• Why guaranteed income may help reduce retirement stress
• The risk of running out of money before running out of life
• How annuities can allow retirees to spend both growth and principal
• Why Roth IRA annuities can create tax-free lifetime income
• The importance of understanding annuity rules before purchasing one
• How fixed index annuities may help address inflation concerns

Jimmy also shares why dying broke can be a reasonable goal for some people, but only when the plan is built carefully and includes the right guarantees. When structured correctly, the goal is not simply to spend everything. It is to create a retirement income strategy that allows you to enjoy your money with confidence while reducing the risk of outliving it.

• Visit Divorce-the-IRS.com
• Visit Baobab Wealth
• Visit Baobab Wealth Abroad
• Buy a copy of Jimmy's book, Divorce the IRS
• Follow us on Facebook
• Subscribe to us on YouTube
• Connect with us on LinkedIn