Could Maxing Your 401(k) Impact Your Retirement Costs? | Data Brief

Most people are told to save as much as possible in their 401(k) or other pre-tax retirement accounts. For many, that advice works—but for a surprising number of people, especially high earners and early savers, it can create hidden problems later in life.

In this episode of Data Brief, Certified Financial Planner Eli Freeman breaks down the data behind why blindly saving only pre-tax dollars may limit flexibility, increase taxes, and even raise healthcare costs in retirement.

Eli covers:
-Why accessing pre-tax accounts before age 59½ can be restrictive
-How large pre-tax balances can keep you in the same (or higher) tax brackets in retirement
-The impact of pre-tax withdrawals on ACA healthcare subsidies before Medicare
-How higher income can trigger Medicare IRMAA surcharges
-Why Required Minimum Distributions (RMDs) can force unnecessary taxable income
-The often-overlooked tax consequences for surviving spouses
-How Roth accounts and taxable brokerage accounts add flexibility
-When Roth conversions may reduce lifetime taxes
-How Qualified Charitable Distributions (QCDs) can be a powerful planning tool

If you’re planning to retire early, expect to spend more in retirement, or have already built a large pre-tax balance, this video will help you think differently about where you save—not just how much.

This is not about avoiding pre-tax accounts entirely. It’s about building a diversified retirement strategy that reduces surprise taxes, protects healthcare subsidies, minimizes Medicare penalties, and gives you more control over your income later in life.

This content is for educational purposes only and is not individualized financial advice.

Eli references a fellow youtube creator, Ari. Here is his channel for reference: ‪@earlyretirementari‬ (If you ever want to collab, hit us up!)

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#RetirementPlanning #401k #RetirementTaxes #FinancialPlanning
#TaxPlanning #EarlyRetirement #WealthStrategy #PersonalFinance
#RothConversion #InvestingEducation

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The hosts of the Market Moment podcast are employees of Mach 1 Financial Group LLC. Mach 1 is a registered investment advisor located in Rogers, Arkansas. A copy of Mach 1’s current written disclosure brochure is available through the SEC website and at Disclosures.mach1FG.com.