Ed Slott and Company’s Ultimate Retirement Tax-Savings Roadmap
Think your IRA is all yours? Think again.
It’s actually a joint account with Uncle Sam—and one wrong move could cost you thousands in unnecessary taxes.
In this 40-minute national special, Ed Slott and Company — America’s IRA Experts — break down the biggest retirement tax mistakes and how to avoid them. And if you don't want to watch it, you can read all about each section key points down below.
You’ll discover:
- Smart tax-saving moves in your 50s, 60s, and 70s
- How to reduce RMD taxes and avoid penalties
- Why outdated beneficiary forms could derail your legacy plan
- The hidden dangers of Roth conversions and rollovers
Click below to watch the video!
Time Stamps:
00:00 – Why Your IRA Isn’t Really Yours
02:15 – Retirement Tax Planning in Your 50s: Contributions and Penalties
07:35 – Your 60s: The Sweet Spot for Roth Conversions
15:00 – Real-Life Roth Conversion Mistakes & Lessons
16:06 – Your 70s: Required Minimum Distributions (RMDs)
18:51 – QCDs: Charitable Giving That Cuts Taxes
21:02 – Anytime Mistakes: Rollovers & Job Changes
25:01 – Employer Stock & NUA Strategy
30:00 – Inheritance and Legacy: Beneficiary Form Mistakes
35:00 – The “No Good Brother” Case: Why Forms Matter
36:33 – Putting It All Together: Your Retirement Tax-Saving Roadmap
For over 30 years, Ed and his team have helped thousands of Americans protect their life savings from the IRS with clear, actionable strategies.
This isn’t just one voice — it’s a team of nationally recognized retirement tax experts. Together, they provide the roadmap to help you keep more of what you’ve saved.
Our founder "Christian Cordoba" has been a member of Ed Slott’s Elite IRA Advisor Group℠ since 2007, and trains directly with Ed Slott and Company year-round and has direct access to their team of IRA Experts.
Key Points
The Foundational Truth: Your IRA Is a Growing Tax Bill
The core concept: your traditional IRA is not just yours—it’s an IOU to the IRS. Because all pre-tax contributions will eventually be taxed when withdrawn, your retirement account is actually a compounding tax obligation. And unlike market losses, money lost to taxes never comes back.
But the good news? With proper planning, you can take control. You just need to decide: Do you want your plan—or the government’s?
In Your 50s: Contributions, Penalties, and Critical Tax Decisions
If you’re in your 50s, you’re in a pivotal decade—whether you’re trying to play financial catch-up, reposition assets for retirement, or avoid costly tax missteps. As retirement planners here at California Retirement Advisors, we often refer to this stage as the “moment of momentum”. It's when time is still on your side—if you act wisely.
Thanks to Ed Slott’s national tax education program (which we’re proud to bring to our clients), here’s what every 50-something needs to know about saving—and withdrawing—the right way.
Catch-Up Contributions: A Late Start Doesn’t Mean a Lost Cause
If you're age 50 or older by year-end, you're eligible to make additional catch-up contributions to your retirement accounts—on top of the standard limits.
These catch-up contributions apply to:
- 401(k) and 403(b) workplace retirement plans
- Traditional and Roth IRAs
This is a huge opportunity for late savers, business owners, and even career-shifters who may have taken time off earlier in life or didn’t prioritize retirement savings in their 30s and 40s. Increasing contributions even slightly at this stage can result in significant compound growth—especially with proper tax and investment coordination.
At CRA, we help clients assess how to maximize these contributions without compromising lifestyle, and more importantly, how to coordinate them with tax deductions, Roth strategies, or even employer match thresholds.
Early Withdrawals: The 10% Penalty and Its 20+ Exceptions
While some in their 50s are accelerating their savings, others may need to tap into their retirement funds—often due to unexpected job changes, medical events, or life transitions.
Here’s the catch: if you take money out of your IRA or 401(k) before age 59½, you may be hit with a 10% early distribution penalty—on top of regular income tax.
But real life happens, and Congress has created over 20 penalty exceptions.
These include:
- Medical expenses (IRA or plan)
- Higher education expenses (IRA only)
- First-time homebuyer costs (IRA only, $10K lifetime max)
- Separation from service at age 55 or older (plan only)
Here’s the problem: many people assume these exceptions are interchangeable across accounts—they’re not.
For example:
Taking money for college from a 401(k)—even if you qualify under the “education” rule—will not avoid the penalty. That exception only applies to IRAs. Several court cases have confirmed this mistake, costing individuals thousands in unnecessary taxes and penalties.
Just Because You Can Doesn’t Mean You Should
Even if you qualify for an exception, it doesn’t mean it’s smart to use it.
Withdrawals still trigger taxable income, potentially push you into a higher tax bracket, and shrink your retirement savings permanently. Every dollar withdrawn early is a dollar that’s no longer compounding for your future—or available for future planning strategies, like Roth conversions or legacy planning.
At CRA, we advise clients through these nuanced decisions. Sometimes it makes sense to access retirement funds early. Other times, we can help find alternate income sources—like brokerage accounts, HSA reimbursements, or penalty-free plan loans.
Key Takeaways for Your 50s
- Maximize contributions. Catch-up contributions are valuable tools—especially when coordinated across multiple accounts.
- Avoid early withdrawals. But if you must, know which account types allow for which exceptions.
- Don’t go it alone. The complexity around exceptions—and the irreversible nature of some mistakes—makes this a decade where proper planning pays off.
Your 50s are not just about accumulating more—they're about laying the groundwork for how and when you’ll withdraw, and what that means for your future tax picture. And with the right strategy, this decade can become the launchpad for the retirement lifestyle you’ve worked hard to build.
In Your 60s: The Sweet Spot for Strategic Roth Conversions & Lifetime Tax Planning
If your 50s were about acceleration and avoiding pitfalls, your 60s are all about strategic positioning. At California Retirement Advisors, we call this the “Retirement Tax Sweet Spot”—a narrow but powerful window of time where smart tax moves can dramatically lower your lifetime tax bill.
With Required Minimum Distributions (RMDs) looming at age 73, Social Security and Medicare kicking in, and income often dipping post-career, your 60s offer a unique chance to reshape your tax trajectory—if you know what to look for.
Thanks to the educational material from Ed Slott’s team, here are the core strategies to apply in your 60s.
Roth Conversions Before Age 63: A Powerful But Time-Sensitive Opportunity
The early 60s—ages 60 to 62—are considered the prime time for Roth IRA conversions. Why? Because once you hit age 63, the income you show on your tax return can trigger IRMAA (Income-Related Monthly Adjustment Amount) surcharges on your Medicare Part B and D premiums.
These surcharges:
- Are based on your income from two years earlier
- Are assessed using cliff brackets, where even $1 over the limit can spike your monthly costs
- Can add thousands per year to your retirement expenses if triggered
That means a Roth conversion at age 63 could result in higher Medicare premiums at age 65. But by completing conversions earlier—during the 60 to 62 window—you can avoid this entirely.
At CRA, we specialize in helping clients identify how much Roth to convert each year, how to coordinate it with capital gains, and how to stay within your desired tax bracket.
Two Smart Conversion Tactics We Use with Clients
1. Dollar-Cost Averaging into a Roth
Instead of converting all at once, consider spreading your conversions across the year—quarterly, monthly, or tied to market dips. This allows for:
- More flexible tax planning
- A better chance at converting when values are temporarily low (more shares, less tax)
2. Bracket Bumping Strategy
Everyone has a “ceiling” in their current tax bracket. We help clients calculate exactly how much room they have left in their current bracket—and convert up to that limit without crossing into a higher one.
These aren’t cookie-cutter decisions. We tailor each plan based on income, expenses, charitable giving, and even real estate events (like rental income or property sales).
What About the IRMAA Penalty?
We often hear questions like:
“Won’t a Roth conversion increase my income and raise my Medicare costs?”
Yes—but only if timed wrong.
That’s why we guide clients to do conversions before age 63.
As Ed Slott says: “Better to be annoyed for one year than overpay the IRS for the rest of your life.”
We couldn’t agree more.
Super-Sized Catch-Up Contributions (Coming in 2025)
Starting in 2025, individuals aged 60–63 will be allowed to make “super catch-up” contributions—an enhancement of the standard catch-up rules.
Key highlights:
- Available only if your employer plan allows it (not mandatory)
- You can contribute 1.5x the current age-50 catch-up limit
- Applies to 401(k), 403(b), and governmental 457(b) plans
- Not stackable with age-50 catch-up—it’s an “instead of,” not “in addition to”
This is especially valuable if:
- You’re behind on saving and want to accelerate contributions late-career
- You’re selling a business or winding down work and want to defer income into the plan
We help clients evaluate if their employer plan supports this and how to take advantage of it before the opportunity closes (once you turn 64, it disappears).
Life Insurance as a Tax Strategy?
In some situations, we also help clients explore cash value life insurance as a tax-diversification tool:
- Reduces future RMDs by shifting assets out of the IRA
- Creates a tax-free death benefit
- Can offer supplemental tax-free income later in life
But this is not for everyone. It requires careful planning, the right product structure, and attention to detail—something retail firms rarely get right. At CRA, we evaluate whether this strategy makes sense as part of your Tax Management Journey™.
Key Takeaways for Your 60s
- Your 60s are the last great window to reposition assets before the IRS starts demanding RMDs.
- Roth conversions, when done strategically, can reduce your future income taxes, Medicare costs, and legacy taxes for your heirs.
- Super catch-up contributions allow late-stage savers to maximize pre-retirement deferrals.
- Failing to act in your 60s means handing over more of your wealth to taxes—often unnecessarily.
Our role at CRA is to coordinate these pieces—Roth strategies, IRMAA thresholds, Medicare timing, catch-up options, and charitable giving—into a cohesive plan that puts your family’s needs first.
In Your 70s: Required Minimum Distributions (RMDs), QCDs, and Avoiding Penalties
If you’re entering your 70s, welcome to what we call the “Distribution Decade”—when your years of diligent saving come full circle and Uncle Sam starts demanding his share.
At California Retirement Advisors, we help clients navigate this complex phase of retirement, where Required Minimum Distributions (RMDs), tax brackets, Medicare costs, and estate considerations all collide. It’s also the decade where smart tax planning isn’t optional—it’s essential.
Let’s explore what every 70-something needs to know, based on guidance from Ed Slott’s team of IRA experts.
RMDs Begin at Age 73: The IRS Wants Its Cut
With traditional IRAs and other pre-tax accounts, you must begin taking required minimum distributions (RMDs) by April 1st of the year after you turn 73.
How much do you have to take?
It depends on:
- Your December 31st account balance from the prior year
- Your life expectancy factor (based on IRS tables)
At CRA, we walk clients through these calculations and help them coordinate distributions across multiple accounts to minimize tax impact and preserve flexibility. (Yes, you can take the full RMD from one IRA—even if you have several.)
But beware: miss your RMD deadline and you could face a painful 25% penalty—one of the harshest in the tax code.
Use QCDs to Offset RMDs and Reduce Taxable Income
Here’s one of our favorite tools for charitably inclined clients in their 70s: Qualified Charitable Distributions (QCDs).
With a QCD, you can:
- Direct up to $100,000/year from your IRA straight to a qualified charity
- Satisfy your RMD obligation
- Completely exclude the distribution from your taxable income
Why this matters:
- Reduces your AGI, which can lower Medicare premiums and taxation of Social Security
- Offers greater tax efficiency than itemizing charitable deductions
- Works even if you don’t itemize at all
To use a QCD:
- You must be at least 70½ (even though RMDs start at 73)
- The money must go directly from the IRA to the charity
- You cannot touch the funds yourself—not even for a second
We help clients structure their QCDs carefully to ensure they are IRS-compliant, coordinated with RMDs, and aligned with their giving goals. This is a way to transform a forced tax obligation into a meaningful legacy.
Rolling Over at 73? Don’t Miss This Hidden Trap
Here’s a common and costly mistake: rolling over a 401(k) or employer plan to an IRA at age 73 without taking the RMD first.
According to Ed Slott’s team, this triggers:
- A failed rollover
- An excess contribution
- A potential 25% penalty—and it’s often irrevocable
Why? Because the IRS says:
- The first dollars out of a plan in the year you turn 73 are assumed to be the RMD.
- RMDs cannot be rolled over.
- If you try, it’s considered an improper rollover that must be corrected—fast.
At CRA, we help clients handle rollovers in the correct order—often extracting the RMD first, then completing a compliant direct rollover. Timing and paperwork matter. One wrong checkbox can cost thousands.
Key Takeaways for Your 70s
- RMDs start at age 73—but your first withdrawal is due by April 1st of the following year
- Missing your RMD = 25% penalty
- Use QCDs to offset RMDs, reduce taxable income, and support the causes you care about
- Be very cautious with rollovers after age 73—these are easy to mess up and hard to fix
- Coordinate withdrawals with Social Security, Medicare IRMAA brackets, and charitable goals
This decade isn’t just about “taking the money out.” It’s about doing it the right way, on your terms, with your values in mind.
At CRA, we work alongside clients to ensure their income plan, tax plan, and legacy goals are fully integrated—and we handle the heavy lifting so you don’t risk irreversible tax mistakes.
At Any Age: Avoiding Devastating Mistakes with Rollovers, Job Changes, and Beneficiary Forms
Some of the most expensive mistakes we see clients make don’t happen because of the stock market or the economy… They happen because of simple missteps: rolling over funds the wrong way, changing jobs without understanding options, or neglecting to update beneficiary forms.
Whether you’re 45 or 75, these issues can cost you tens of thousands in unnecessary taxes, penalties, or lost legacy dollars—and in many cases, there’s no way to fix it once it’s done.
At California Retirement Advisors, we believe retirement tax planning isn’t just about saving money. It’s about avoiding irreversible errors by taking a proactive, coordinated approach.
Let’s walk through what the Ed Slott team teaches—and how we help you apply it the right way.
The #1 Rollover Mistake: The 60-Day Trap
It sounds simple: “I’ll just take the money out of my retirement account and put it back within 60 days.”
But this 60-day rollover rule causes more tax disasters than almost anything else. Here’s why:
- If you miss the 60-day deadline, your withdrawal becomes fully taxable income—plus a 10% penalty if you're under 59½.
- If it’s from an employer plan, 20% will be withheld automatically for taxes—meaning you’ll have to replace that amount from your own funds to complete a full rollover.
- You can only do one 60-day rollover per 12-month period per person—not per account. Break this rule and you’ll owe taxes and penalties.
The safer, smarter option? A direct transfer, where the funds move from one custodian to another without you ever touching the money.
At CRA, we never recommend clients try a 60-day rollover on their own. We coordinate direct rollovers or trustee-to-trustee transfers and ensure every step is compliant—because when mistakes happen here, they’re often unfixable.
Job Change or Retirement? Don’t Rush the Rollover
When you leave a job—whether due to a layoff, retirement, or change of plans—you’ll likely have access to your 401(k), 403(b), or other retirement plan.
But don’t just “roll it over” by default. There are multiple options, and one wrong move could eliminate powerful tax-saving opportunities.
Here’s a rundown:
Option 1: Keep Money in the Plan
- Offers ERISA protection (gold-standard creditor protection)
- May have lower fees if you’re in an institutional plan
- Can use the “Rule of 55” for penalty-free withdrawals
Option 2: IRA Rollover
- More investment flexibility
- Easier to aggregate RMDs in retirement
- Enables Qualified Charitable Distributions (QCDs) — not available in 401(k)s
Option 3: Net Unrealized Appreciation (NUA)
If you hold company stock inside your retirement plan and that stock has appreciated significantly, you may be eligible for a tax break called Net Unrealized Appreciation (NUA).
How it works:
- When handled correctly, you only pay ordinary income tax on the cost basis of the shares, and the appreciation is taxed later at long-term capital gains rates
- But if you roll over your entire plan into an IRA first, you lose the NUA opportunity forever
NUA is complex, but powerful—and should never be overlooked if you hold company stock. We help clients analyze whether this strategy makes sense and guide them step-by-step through the process.
Real-World Cautionary Tale: The Maulharn Case
Ed Slott’s team shared the story of Carol Maulharn, who tried to roll over her plan herself. She had the distribution sent directly to herself, triggering a 20% tax withholding.
She then fought to have the checks canceled, took the issue to court—and lost.
If she’d worked with a trained advisor, she could have:
- Replaced the 20% withheld amount
- Completed a proper rollover
- Avoided the unexpected tax bill
This mistake is more common than you think but knowing how to prevent it by structuring transitions and paperwork correctly before the money moves can set you up to save more money for what actually matters.
Beneficiary Form Mistakes: The $500,000 Oversight
Most people think their will or trust controls who inherits their IRA or 401(k). It doesn’t.
Retirement accounts pass by beneficiary designation—period.
If your form is wrong, missing, outdated, or incomplete, it could:
- Override your will
- Disinherit your children
- Send money to an ex-spouse, estranged sibling, or default relative
Common Errors:
- No primary beneficiary listed
- No contingent (backup) beneficiaries
- Beneficiaries not updated after divorce or death
- Naming a trust without understanding the tax consequences
At CRA, we perform annual beneficiary form reviews for every client. This is especially critical for families with second marriages, adult children, or blended family dynamics.
Real-World Tragedy: The “No Good Brother” Story
Ed Slott tells the story of “Len,” a man who worked at a grocery store and left everything to his nephews in his will—deliberately excluding his brother.
But Len never updated his 401(k) beneficiary form. The default plan terms kicked in, naming his nearest living relative… You guessed it: the no-good brother.
The brother inherited the entire account. The nephews got nothing.
This is preventable. At CRA, we don’t just build financial plans—we protect legacies.
Key Takeaways for Anytime Mistakes
- Never use a 60-day rollover unless it’s unavoidable—and even then, get professional help
- Understand your rollover options before taking action: QCDs, RMDs, and NUA rules can be impacted
- Update your beneficiary forms regularly—they override your will
- Avoid DIY mistakes. Work with professionals trained in the rules, exceptions, and tax traps
Good tax planning isn't just about saving money. It's about avoiding irreversible mistakes.
Whether you're switching jobs at 55, retiring at 68, or managing inherited IRA assets in your 40s, your financial life doesn’t fit in a one-size-fits-all box—and neither should your strategy.
Putting It All Together: Your Retirement Tax-Saving Roadmap
You started this journey thinking your IRA was yours—and now you know it’s more like a joint account with Uncle Sam. But with the right strategy, timing, and expertise, you can take control of that account and transform it into a tax-efficient retirement engine.
Whether you’re in your 50s, 60s, 70s—or managing someone else’s legacy—the decisions you make today will ripple across the rest of your financial life:
- In your 50s, it’s about maximizing catch-up contributions, avoiding penalty traps, and setting up future flexibility.
- In your 60s, it’s the “sweet spot” for tax planning—Roth conversions, IRMAA coordination, and supercharged deferrals.
- In your 70s, it’s about executing withdrawals wisely, leveraging QCDs, and minimizing tax friction during RMDs.
- At any age, it’s about avoiding rollover disasters, protecting legacy intentions with accurate beneficiary forms, and coordinating everything to work together.
At California Retirement Advisors, we don’t just manage investments—we orchestrate your wealth. We integrate tax, income, estate, and legacy planning through our proprietary CRAve Life Advisory Process™ to help successful families retire smarter and stay in control of what they’ve built.
What Makes CRA Different?
While Wall Street firms are often busy selling products or sticking you in a one-size-fits-all portfolio, we’re focused on one thing: protecting and growing your after-tax retirement income.
We’re proud to bring you Ed Slott’s educational insights—but more importantly, we help you implement them with:
- Roth Conversion Strategies
- RMD Tax Coordination
- QCD & Charitable Giving Plans
- Rollovers Done Right
- Beneficiary Form Reviews
- Lifetime Tax Bill Management
- Tax-Savvy Wealth Transfers for Heirs
Ready to Take the Next Step?
If you want to keep more of what you’ve saved and avoid the most common (and costly) retirement tax mistakes:
Click here to schedule a free 20 Min Retirement Tax Strategy Call with one of our fiduciary advisors today.
Final Thought
You’ve worked too hard to leave your retirement at the mercy of default rules, outdated beneficiary forms, or IRS withdrawal schedules.
Knowledge is power—but action is freedom.
It’s not about outsmarting the IRS. It’s about having a smarter plan than the IRS expects.
We’ll help you build it to let you live the life CRAve.