MoneyRx for CRNAs and NPs

The Retirement Tax Time Bomb in Your 403(b) or 401(k)

Brett Fellows, CFP® Season 1 Episode 77

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0:00 | 17:43

Do you have a retirement tax bomb? Many CRNAs and nurse practitioners spend 30 years following traditional financial advice: max out your 403(b), live below your means, and defer taxes as long as possible. However, this strategy often leads to a "retirement tax bomb" where required minimum distributions (RMDs) and Social Security push you into a higher tax bracket than when you were working. AKA your tax bill might be jaw-dropping in your Golden Years. 

In this episode, Brett Fellows, CFP®, explains how to avoid this expensive mistake through strategic tax bracket filling. He shares real-world case studies of nurses who saved over $130,000 in lifetime taxes by utilizing the 0% capital gains rate and well-timed Roth conversions. See how to manage your three tax buckets and why asset location is just as important as asset allocation.

Brett Covers:

  • How RMDs and Social Security create the retirement tax bomb.
  • The three tax buckets: tax-deferred, tax-free, and taxable.
  • A strategy to pay 0% federal tax on capital gains during early retirement.
  • How to execute Roth conversions without triggering Medicare surcharges.
  • The four biggest tax mistakes nurses make.
  • A three-phase framework for tax-efficient retirement withdrawals

Whether you are a decade away from retirement or already considering your exit date, these strategies can help ensure your savings remain in your pocket rather than going to the IRS.

#CRNAs #NursePractitioners #RetirementPlanning #TaxStrategy 

Key Timestamps:

(0:18) David and Karen’s $1.4 Million Tax Mistake

(2:37) Defining the Retirement Tax Bomb

(3:27) Tax Bracket Filling and the Three Buckets

(4:35) Case Study: Saving $130,000 in Lifetime Taxes

(5:34) How the 0% Capital Gains Rate Works

(6:25) Strategic Roth Conversions and Social Security

(7:20) Asset Location: Where to Put Your Investments

(8:30) Managing IRMAA and Medicare Surcharges

(9:10) The Three Phases of a Tax-Efficient Retirement

(10:10) The Four Biggest Tax Mistakes APRNs Make

(11:24) Angela’s Example: A Plan for Single Providers 



For more information and resources related to this episode, please visit the show notes