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Divorce the IRS

Welcome to Divorce the IRS, the Retirement Income Planning Podcast—built for people who want to pay the least amount of taxes possible and create retirement income that actually lasts. Inspired by Jimmy Miller’s bestselling book Divorce, the IRS, this show takes you behind the scenes of the tax rules, retirement strategies, and planning decisions that can quietly determine how much of your money you keep.

The truth is, taxes aren’t just “something you deal with later.” The U.S. tax code is massive, confusing by design, and full of traps that can hit hardest right when you need your money most. From 401(k)s and IRAs to Social Security and Medicare, many common “smart moves” can turn into expensive surprises—like required minimum distributions, Medicare surcharges, the widow’s penalty, and other retirement tax time bombs most people don’t see coming until it’s too late.

With 20+ years of experience as a global wealth manager, Jimmy breaks these topics down in a clear, practical way—so you can plan proactively, avoid unnecessary taxes, and build a retirement where your delayed gratification finally pays off. Subscribe so you never miss an episode, and remember: this podcast is for general education only and isn’t legal, tax, or investment advice—always consult a qualified professional for guidance specific to your situation.

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Divorce the IRS

Are You Borrowing Money From The IRS?

January 26, 2026 • James Miller • Episode 6

0:00 | 10:10

In this episode of The Divorce the IRS Podcast, we break down a retirement planning idea that most people misunderstand: the so-called “tax deduction” you get when contributing to tax-deferred accounts like traditional IRAs and 401(k)s. What if those deductions aren’t really deductions at all—but small loans from the IRS that come due later?

We start by revisiting the three tax buckets—Tax Me Now, Tax Me Later, and Tax Me Never—and focus on the bucket most Americans rely on: the Tax Me Later bucket. This includes traditional IRAs, 401(k)s, and similar plans where contributions are pre-tax, growth is tax-deferred, and withdrawals are taxed as ordinary income. While these accounts are incredibly popular, they also keep the IRS permanently attached to your retirement savings.

Next, we explain why tax deferral works more like borrowing than saving. When you contribute pre-tax dollars, you’re not avoiding taxes—you’re postponing them. The IRS simply allows you to delay paying its share today, placing a lien on both your contributions and all future growth. When the money is withdrawn in retirement, the IRS collects—often on a much larger balance.

We walk through a simple example to show how this works in real life and why growth inside tax-deferred accounts can actually increase your lifetime tax bill. Even if you’re in a lower tax bracket later, you may still pay back more than you ever saved.

Finally, we explore why Roth accounts—part of the Tax Me Never bucket—can be one of the easiest ways to boost real retirement savings. By paying tax upfront, you eliminate future tax uncertainty and keep 100% of your retirement income working for you, not the IRS.

The big takeaway: retirement accounts aren’t about getting deductions today—they’re about maximizing spendable income later. If you want to stop borrowing from the IRS and start building a more tax-free future, this episode shows you where to begin.