Avoid IRA Tax Traps: Why Your IRA Isn’t Really Yours

Think your IRA is all yours? Think again.

For many retirees and pre-retirees, an IRA feels like personal savings — money you worked hard to earn and set aside for the future. But under U.S. tax law, an IRA is effectively a joint account with the IRS. Every withdrawal, rollover, conversion, and inheritance decision is governed by strict rules, and one misstep can trigger unnecessary taxes, penalties, or long-term consequences for your family.

That’s why we’re sharing a 40-minute national educational special from Ed Slott and Company, a nationally recognized IRA education firm known for helping investors understand complex retirement tax rules.

This presentation highlights the most common IRA tax traps — and how thoughtful planning may help reduce avoidable mistakes.

What Is the Biggest Tax Mistake People Make with IRAs?

One of the most common IRA mistakes is assuming that tax planning can wait until retirement. In reality, IRA decisions made in your 50s, 60s, and early 70s often have the greatest impact on lifetime taxes.

The Ed Slott special walks through real-world examples showing how:

• Missed planning opportunities can increase Required Minimum Distributions (RMDs)
• Poorly timed Roth conversions can push retirees into higher tax brackets
• Outdated beneficiary forms can override even well-written estate plans

What You’ll Learn in the Ed Slott IRA Tax Special

This 40-minute presentation is organized by life stage, helping viewers understand how IRA rules change over time.

Retirement Tax Planning in Your 50s

• Contribution limits for retirement plans
• Common early-withdrawal and penalty mistakes
• Why understanding the 10% penalty exceptions matters

Your 60s: The Roth Conversion “Sweet Spot”

• When Roth conversions may make sense under current tax law
• Real-life Roth conversion mistakes and lessons learned
• How conversions interact with future RMDs and Medicare considerations

Your 70s: Required Minimum Distributions (RMDs)

• How RMD rules work and why errors are common
• Strategies that may help reduce RMD-related taxes
• Using Qualified Charitable Distributions (QCDs) as part of charitable planning

Anytime Mistakes: Rollovers, Job Changes, and Employer Stock

• Rollover errors during job transitions
• When employer stock and Net Unrealized Appreciation (NUA) strategies deserve attention
• Why paperwork errors often create permanent tax consequences

IRA Inheritance and Beneficiary Planning

• Why beneficiary forms — not wills — control IRA inheritance
• How outdated forms can derail legacy plans
• A real-world case study showing why details matter

Putting It All Together

• A retirement tax-saving roadmap
• Why coordination across accounts, tax brackets, and time horizons matters

Why Beneficiary Forms Matter More Than Your Will

One of the most misunderstood aspects of retirement planning is IRA inheritance. Many people assume their will controls who receives their IRA. In reality, beneficiary designation forms override wills.

The Ed Slott team explains how simple beneficiary mistakes — such as failing to update forms after life changes — can lead to unintended outcomes, higher taxes for heirs, or accelerated distributions.

Why RFG Wealth Advisory Is Sharing This Resource

I’m Chris Robinson with RFG Wealth Advisory. For the past three years, I’ve been a member of Ed Slott’s Elite IRA Advisor Group℠, attending advanced training sessions with their team three times each year.

Because of this ongoing education, our clients benefit from access to current, technically accurate IRA education that reflects today’s tax rules and retirement landscape.

RFG Wealth Advisory is an independent, fee-only, fiduciary Registered Investment Advisor, registered with the SEC. Our role is to help clients evaluate how general retirement tax concepts may apply to their specific situation — before making decisions that could have lasting tax consequences.

Watch the Full 40-Minute IRA Tax Planning Special

If you have an IRA — or expect to inherit one — this educational presentation is well worth your time.

• Start HERE with the short trailer
• Watch the full 40-minute special
• Identify areas of your retirement plan that may deserve a closer look

Watch: Avoid IRA Tax Traps — Why Your IRA Isn’t Really Yours

Want to Go Deeper?

Education is the first step. Personalization is where real value comes in.

If you’d like to discuss how these general IRA and retirement tax concepts may apply to your personal situation — including Roth conversions, RMD planning, charitable strategies, or beneficiary reviews — we’re happy to help.

Schedule a free virtual conversation with RFG Wealth Advisory. This 15-minute chat with a registered financial advisor can help answer any questions and guide you toward the next best steps for you.

Frequently Asked Questions About IRA Tax Planning

Is my IRA really taxed when I retire?
Yes. Most traditional IRAs are tax-deferred, not tax-free. Withdrawals are generally taxed as ordinary income.

Do Roth conversions always save taxes?
Not necessarily. Roth conversions can be powerful, but timing, tax brackets, and long-term planning matter.

What happens if I make a mistake with RMDs?
RMD errors can result in significant penalties, which is why proactive planning is important.

Disclosure: This content and the linked video are provided for educational purposes only and should not be considered individualized investment, tax, or legal advice. RFG Wealth Advisory is an independent, fee-only, fiduciary Registered Investment Advisor registered with the SEC. Advisory services are offered only to clients or prospective clients where RFG Wealth Advisory is properly registered.