How 401(k) Withdrawals Are Really Taxed (Most People Get This Wrong!)

How 401(k) Withdrawals Are Really Taxed (Most People Get This Wrong!) | Ep 13

3M ago 16:56

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In this episode, host Mark Zagurski takes a deep dive into one of the most misunderstood aspects of personal finance—taxes in retirement. Many people assume that once they stop working, their tax burden will automatically decrease, but the reality is far more complex. With a tax code that grows more complicated every year, understanding how federal income tax applies to your retirement savings is crucial.

Drawing from over 30 years in the financial industry, Mark unpacks the truth about how 401(k) withdrawals are actually taxed, the difference between marginal and effective tax rates, and why boilerplate financial advice from online “gurus” can be misleading. Mark also explores the history of U.S. taxation, from Benjamin Franklin’s famous “death and taxes” quote to today’s progressive tax system.

Key Takeaways:

• A $1 million 401(k) isn’t worth $1 million—learn how taxes impact retirement savings.

• Your marginal tax rate is not your effective tax rate—understanding the difference can save you thousands.

• Social media and financial “gurus” often oversimplify tax planning—you need a plan tailored to your situation.

• Tax laws change constantly—what worked 10 years ago may not work today.

• Engaging a financial advisor can help optimize your retirement tax strategy and protect your wealth.

If you’re serious about minimizing your tax burden in retirement, now is the time to create a strategic plan. Visit www.makeitpersonalpodcast.com to schedule a no-obligation consultation and ensure your financial future is secure.

“Most people think their 401(k) is worth a million dollars, but after taxes, that number might be very different.” - Mark Zagurski

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This podcast is for educational purposes only and may include references to concepts that have legal and/or tax implications. Mutual of Omaha Investor Services, Inc. does not provide tax or legal advice. Please consult with the appropriate professional regarding your personal situation prior to making any financial decisions. Strategies discussed may not be suitable for everyone. Securities and advisory services offered through Mutual of Omaha Investor Services, Inc. Member FINRA/SIPC. Mutual of Omaha Advisors is a division of Mutual of Omaha Insurance Company.

24 episodes