How Much of Your IRA Really Belongs to the IRS?

If you have a large traditional IRA or 401(k), here’s the uncomfortable truth:

Every dollar in that pre‑tax account is NOT really yours.

You have a silent partner — the IRS — and you won’t know exactly how big their share is until you start taking withdrawals and Required Minimum Distributions (RMDs).

In this episode of The Retirement Income Lab with Patrick Huey, CFP®, we put that relationship under the microscope and answer a key question:

“How much of your IRA really belongs to you… and how much belongs to the IRS?”

You’ll learn:

• Why your traditional IRA or 401(k) balance is a BEFORE‑tax number, not a spendable number

• How a $1,000,000 IRA might really be a 78/22 “partnership” between you and the IRS

• The difference between pre‑tax, Roth, and taxable accounts — and how each is taxed in retirement

• How two households with the same $1M balance can have very different after‑tax outcomes

• The hidden danger of ignoring your IRA taxes until RMDs hit in your 70s

• How RMDs can push you into higher tax brackets, increase taxes on Social Security, and raise Medicare premiums