Estimated read time: 5-6 minutes
"Every day, we see hard-working families who saved diligently for retirement but are paying far more in taxes than they should. And it's often because they made one very expensive mistake."
This is a recent warning from Utah retirement experts, Tyson Thacker and Ryan Thacker of B.O.S.S. Retirement Solutions, who have helped over 50,000 families plan for a better retirement.
"What makes matters even worse is nobody warns you about this mistake. Not your accountant. Not your CPA. Not even most financial advisors," says Ryan.
That's why Ryan and Tyson have recently released a new guide – The Retirement Mistake That Could Cost You Six Figures in Unnecessary Taxes. It's available at no cost in the link below.
"Most people go into retirement thinking the hard part is over," says Tyson. "But the truth is, one of the biggest financial decisions of your life happens the moment you start pulling money out of your savings."
The costly retirement planning mistake
So, what is this mistake?
It comes down to not having a coordinated plan to withdraw money in retirement.
According to the New York Times, roughly half of all American retirees don't take any systematic approach to withdrawing their retirement savings. Most people simply pull money from whatever account feels convenient at the time.
But the order and timing of your withdrawals – from your IRA, 401(k), Roth account, and after-tax savings – matters a great deal. You could unknowingly trigger higher taxes on your IRA and 401(k) withdrawals, Social Security benefits and other investment income. And you could even double your Medicare premiums.
"When you retire, most people are never told the right way to withdraw money from all of their different types of retirement accounts," says Ryan. "And when retirees don't have a plan for their withdrawals, they usually have to pay a lot more in taxes."
The expensive domino effect
Now here's what makes this mistake so costly: it doesn't just affect your tax bill this year.
When withdrawals aren't carefully coordinated, a chain reaction can begin, and one financial domino can knock over the next. And the consequences grow over time.
"We lay out exactly how this domino effect occurs in our new guide," says Tyson Thacker. "We see so many families who are blindsided by this."
We lay out exactly how this domino effect occurs in our new guide. We see so many families who are blindsided by this.
–Tyson Thacker
The Thackers often illustrate what's at stake with a simple comparison. Imagine two retirees that are the same age, with the same amount of savings and same lifestyle expenses. Both retire with $1 million. One withdraws money with a carefully coordinated strategy. The other one doesn't.
The difference in what they pay in taxes over a 20- or 30-year retirement could easily reach six figures. It's not because one took more risk or worked harder, but simply because withdrawals made today can have consequences for many years to come.
How to prevent this mistake
The good news is there are ways you could avoid this. And the earlier you address it, the more options you have to save on your taxes.
The solution doesn't involve tax loopholes, investing risks, or creating offshore accounts. According to the Thackers, it comes down to simply coordinating your withdrawals with the rest of your financial game plan… and knowing the right window of time to act.
"Retirement planning is often done one piece at a time," says Tyson. "Your CPA focuses on last year. Your investment advisor focuses on returns. Medicare and Social Security decisions are made in isolation. But what most people don't understand is that all of these things are connected."
Their new guide explains how to connect the dots… and how a coordinated withdrawal strategy could yield a windfall of tax savings in retirement.
A free resource for Utah families
The best time to create a withdrawal strategy is before you retire. But even families who have already retired could still benefit from creating this strategy.
This free guide is designed to help you understand where you stand right now, how the domino effect could impact you, and the components of a good withdrawal strategy.
And right now, B.O.S.S. Retirement Solutions is offering it at no cost to Utah residents.
"You worked too hard for too long to hand over more money to the IRS than you have to," says Tyson. "This guide exists because we believe every Utah family deserves to keep more of their retirement savings in their pockets."
About the Authors: Tyson Thacker and Ryan Thacker are the CEO and President of B.O.S.S. Retirement Solutions. They are published authors of the Amazon best-selling book, "The B.O.S.S. Retirement Blueprint, Your Guide to a Secure and Independent Retirement." Their award-winning firm has seven offices located throughout the Wasatch Front, and a new office in St. George.
This is for illustrative purposes only, results may vary. Advisory services offered through B.O.S.S. Retirement Advisors, an SEC Registered Investment Advisory firm. Insurance products and services offered through B.O.S.S. Retirement Solutions. The information contained in this material is given for informational purposes only, and no statement contained herein shall constitute tax, legal or investment advice. The information is not intended to be used as the sole basis for financial decisions, nor should it be construed as advice designed to meet the particular needs of an individual's situation. You should seek advice on legal and tax questions from an independent attorney or tax advisor. BOSS submitted applications and paid application fees to be considered for the Utah Best of State for Retirement Planning awards. The award results were independently determined by the awarding organization's criteria (https://www.bestofstate.org/about.html) and the information BOSS provided in the applications. BOSS received the Utah Best of State award in 2019, 2020, 2021, 2022, 2023 and 2025. Our firm is not affiliated with the U.S. government or any governmental agency. Marketing materials provided by Infinity Marketing Services.
