How to Take Money Out of Your 401(k) or IRA 100% Tax-Free

David’s latest book, the 75,000-word novel The Infinity Code, is set to be released on September 27th.

David says that the U.S. is facing a math problem of gigantic proportions: they have promised way more than they can afford to deliver in regards to Social Security, Medicare, and Medicaid.

The issue is caused by a democratic glitch in the sense that the Baby Boomer generation has far fewer children than their parents had – leading to fewer people putting money into the government programs than those taking that money out.

According to several experts, David discusses, tax rates will have to double sooner or later to keep the system working. 

The problem is that most Americans who are putting money into 401k and IRAs are living in the old paradigm of “putting money into these types of tax-deferred programs to get a tax deduction today, and postpone the payment of those taxes to tomorrow”.

When people “obsess” over wanting to convert every last dollar in their 401k or IRA to a Roth 401k or Roth IRA, they run into the risk of not having any income left in retirement, would they pay taxes on all those dollars. 

A standard deduction of $25,900 is all a married couple in the scenario described above may be left with in retirement.

David talks about the fact that most people don’t realize that their Social Security can be taxed. When they find out, they’re mad because it feels like a double tax.

David debunks a sort of myth: it isn’t true that the same limitations that apply to a normal Roth IRA apply to Roth 401ks and Roth conversions.


Mentioned in this episode:

David’s books: Power of Zero, Look Before Your LIRP, The Volatility Shield, Tax-Free Income for Life and The Infinity Code (free video series)

@mcknightandco on Twitter 

@davidcmcknight on Instagram

David McKnight on YouTube

Schedule your one-on-one strategy session today

Join Our Mailing List