Avoid IRA Tax Traps

 Ed Slott and Company’s Ultimate Retirement Tax-Savings Roadmap

Retirement taxes rarely create problems all at once. More often, they show up quietly — through missed opportunities, unexpected penalties, or decisions that couldn’t be reversed.

That’s why education around retirement tax planning matters long before a required minimum distribution (RMD) or rollover decision is on the table.

This educational video highlights common retirement tax issues that often go unnoticed until it’s too late. The content reflects the type of advanced planning considerations used when evaluating retirement income, tax strategy, and legacy decisions.

Topics covered include:

      • Tax-saving opportunities in your 50s, 60s, and 70s
      • How to reduce RMD taxes and avoid Medicare IRMAA surcharges
      • Common Roth conversion and rollover mistakes
      • Why beneficiary forms — not wills — control IRA inheritance

This educational resource is shared by Gordon Wollman as part of ongoing retirement planning education.

Why This Type of Education Matters

Retirement tax planning is complex — and the rules continue to change. What worked years ago may no longer apply, and decisions made without full context can limit future flexibility.

This resource reflects the type of advanced retirement tax education used behind the scenes when evaluating income strategies, tax exposure, and legacy considerations. Ongoing professional training with Ed Slott and his organization helps ensure planning decisions are informed, current, and thoughtfully applied — rather than reactive.

Put simply: the goal is to help reduce unnecessary taxes, avoid irreversible mistakes, and bring clarity to decisions that often feel overwhelming.

Applying This to Your Own Situation

Educational resources are most valuable when applied within the context of a complete financial picture — including income needs, tax considerations, estate planning, and personal goals.

If questions arise while watching, or if you’d like help understanding how these ideas relate to your own retirement plan, a conversation can always be scheduled to explore that further.

Not Sure Where to Start?

You Don’t Have to Do It Alone

You’ve worked hard to build what you have. You deserve a financial planning team that helps you protect it, grow it, and use it purposefully. At Cornerstone, our structure allows us to go beyond generic advice to deliver strategic, coordinated wealth management tailored to your goals.

We’re here to help you think bigger, plan better, and pursue what’s truly possible—with confidence and connection every step of the way.

If you have any questions, or if you’d like help understanding how these ideas relate to your own retirement plan, we’re here to help.

Call or email today!

        • 605-357-8553 in Sioux Falls
        • 605-352-9490 in Huron
        • Or email cfsteam@mycfsgroup.com

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Any opinions are those of the author and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice. Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional. Investing involves risk and you may incur a profit or loss regardless of strategy selected, including diversification and asset allocation. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Raymond James is not affiliated with and does not endorse the opinions or services of Ed Slott and Company, LLC.

401(k) plans are long-term retirement savings vehicles. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 59 1/2, may be subject to a 10% federal tax penalty.

Matching contributions from your employer may be subject to a vesting schedule. Please consult with your financial advisor for more information.

Contributions to a traditional IRA may be tax-deductible depending on the taxpayer’s income, tax-filing status, and other factors. Withdrawal of pre-tax contributions and/or earnings will be subject to ordinary income tax and, if taken prior to age 591/2, may be subject to a 10% federal tax penalty.

Roth 401(k) plans are long-term retirement savings vehicles. Contributions to a Roth 401(k) are never tax deductible, but if certain conditions are met, distributions will be completely income tax free. Unlike Roth IRAs, Roth 401(k) participants are subject to required minimum distributions at age 72 (70 ½ if you reach 70 ½ before January 1, 2020).

Unless certain criteria are met, Roth IRA owners must be 59½ or older and have held the IRA for five years before tax-free withdrawals are permitted. Additionally, each converted amount may be subject to its own five-year holding period. Converting a traditional IRA into a Roth IRA has tax implications. Investors should consult a tax advisor before deciding to do a conversion.