Check out this video
Nothing could be further from the truth! The reality is that you have a partner, the IRS, aka Uncle Sam. For example, if you have $300,000 in your IRA and you are in a 32% federal income tax bracket, the IRS owns approximately $100,000 of your account, leaving only $200,000 for you. This is the contract IRA owners made with the IRS when they tax-deducted their contributions. It was a simple agreement: you save the tax on the seed but you must now pay the tax on the crop. Your IRS partner will dictate when you will pay the tax and how much you will pay. If your tax bracket is increased to 50%, the IRS will own half of your IRA. Anything over 50%, the IRS becomes your senior partner. The same rules apply to 401(k)s, 403(b)s, 457 plans and most other qualified retirement accounts.
Also not true. The only way out of an IRA is through the IRS. The contract with the IRS is air tight. You must begin taking taxable distributions by April 1of the year after you turn age 73. Even at death the IRS will get its pound of flesh. If you die while owning an IRA or other qualified retirement account, your heirs will inherit the IRA taxes. Either way the taxes must be paid and the IRS will tell you when they must be paid and how much the taxes will be. Fortunately, strategies exist that can help put the IRA owner back in control so they can determine when and how much tax will be paid.
This is the biggest myth of all. Even though the IRA owner does not own the entire account and there is no way to beat the taxes on IRA distributions, account holders can still take strategic steps to increase the income from their IRA and ease the tax burden. This is where the Trained IRA Advisor can play a big role in guiding you through the IRS maze of regulations, deadlines, and penalties and help you get the most out of your IRAs, 401(k)s, and other retirement accounts.
American Network of Financial Education