I’m 61 with a $1 Million IRA. Here’s What the IRS Takes

Sebastian Guerra's latest case study reveals the critical tax challenges facing a 61-year-old single woman named Michelle with $1 million in her IRA. The analysis uncovers potential tax pitfalls that could cost her and her heirs over $600,000 in unnecessary tax payments.

Michelle needs $6,000 a month to maintain her lifestyle with an income gap of $2,500 a month. Her primary financial goals include retiring comfortably by age 62, minimizing tax liability, and preserving wealth for her children.

Client's Concerns/Goals:
✅ Start Social Security ASAP
✅ Avoid Tapping Investments Too Early
✅ Have a Simple Retirement Plan
✅ Protect Each Other
✅ Not Pay more in Taxes Than Necessary

Key Takeaway:
Proactive retirement planning can potentially save hundreds of thousands in taxes by strategically managing Social Security, implementing Roth conversions, and creating a tax-efficient withdrawal strategy.

Video Description Timestamps:
00:00 - Introduction
00:53 - Michelle's Financials
01:53 - Michelle’s Financial Goals
02:36 - Michelle’s Challenges - Tax Impact
04:15 - Michelle’s Challenges - Tax Burden
05:36 - Optimization Plan - Roth Conversions
05:36 - Optimization Plan - Delay Social Security
06:23 - Optimization Plan - Tax Efficient Withdrawal Order
09:46 - Optimization Plan - Qualified Charitable Distributions (QCDs)
11:11 - Optimization Plan - Legacy Planning
13:00 - Conclusion