Divorce the IRS

Most people think the key to lowering taxes in retirement is simple: use Roth accounts.But what if the real strategy is more nuanced than that?In this episode of The Divorce the IRS Podcast, we break down one of the most important concepts in retirement tax planning: finding your “ideal number” in tax-deferred accounts and using a combination strategy to minimize taxes over your lifetime.While Roth IRAs and Roth 401(k)s are powerful tools, their value goes far beyond tax-free growth. When used correctly, they can help reduce your retirement tax rate, avoid Social Security taxation, limit Medicare premium increases, and even help sidestep issues like the widow’s penalty.But here’s the key insight: maximizing Roth alone is not the full strategy.We explain why having some money in pre-tax accounts can actually work in your favor, especially when you understand how to use your standard deduction each year. By coordinating withdrawals between tax-deferred and tax-free accounts, you can potentially generate income in retirement while paying little to no tax.Using a simple example, we show how the standard deduction allows you to withdraw from pre-tax accounts tax-free, and how going beyond that threshold triggers taxes at the lowest brackets.This episode introduces the “ideal number”, the amount you should have in tax-deferred accounts by retirement to fully use these rules without exposing yourself to unnecessary taxes from required minimum distributions later on.If your goal is to build wealth while paying the least amount of tax possible over your lifetime, this is a conversation you cannot afford to miss.Calculate your ideal number:https://baobabwealth.com/ideal-number/Watch the Ideal Number Video:https://baobabwealth.com/the-ideal-number-for-tax-efficient-retirement-what-most-people-miss/In This Episode• Why Roth accounts are powerful but not a complete strategy • How combining tax-free and tax-deferred accounts lowers lifetime taxes • How the standard deduction creates tax-free retirement income • The concept of the “ideal number” • Why too much in pre-tax accounts creates future tax riskWhat’s Coming Next• Roth conversion strategies to reduce future taxes • How to shift assets toward tax-free income • Advanced strategies to minimize taxes in retirementVisit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

What happens to your money after you pass away?For many families, the answer is more complicated and more costly than expected.In this episode of The Divorce the IRS Podcast, we break down the final tax time bomb, often described as paying taxes from the grave. It is a hidden risk that can leave your heirs with a significant tax burden, even if your intentions were to pass along as much wealth as possible.We walk through how tax-deferred accounts like IRAs and 401(k)s are treated when inherited, and why recent rule changes have made this issue even more important. For non-spouse beneficiaries, the requirement to withdraw funds within a limited timeframe can create a tax spike, especially if those heirs are in their peak earning years.We also explore how this tax burden can be larger than expected, depending on who inherits your assets and what their financial situation looks like. Without proper planning, what you leave behind could be taxed at a higher rate than what you experienced during your lifetime.The good news is there are ways to prepare. We discuss strategies that may help reduce or eliminate this burden, including the use of Roth accounts and how certain types of life insurance can be structured to offset future taxes for your heirs.This is not just about what you leave behind, it is about how efficiently it is passed on.If leaving a legacy matters to you, this is a conversation worth having as part of your overall financial plan.In this episode, you will learn:How inherited retirement accounts are taxed Why the 10-year withdrawal rule can create a tax spike How your heirs’ tax bracket impacts what they actually keep The difference between passing assets to a spouse versus other beneficiaries Strategies that may help reduce or eliminate taxes for your heirsMake sure to subscribe so you do not miss the next episode, where we begin to tie these strategies together and show how to apply them within your financial plan.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

What happens to your taxes when one spouse passes away?For many couples, the answer is surprising and costly.In this episode of The Divorce the IRS Podcast, we break down one of the most overlooked risks in retirement planning, often called the widow’s or widower’s penalty. It is a tax shift that can increase your tax burden even as your income declines, creating a difficult financial situation during an already emotional time.We walk through a real-world example to show how a surviving spouse can end up paying more in taxes despite having less income. From changes in filing status to reduced deductions and tighter tax brackets, the impact can be significant if it is not planned for in advance.The good news is there are ways to prepare. We explore two strategies that may help reduce or offset this risk, including the role of tax-free income sources and how certain planning tools can help maintain flexibility in retirement.This is not a topic many people want to think about, but it is one that deserves attention as part of a well-rounded financial plan.If you are married and thinking about retirement, this is a conversation worth having sooner rather than later.In this episode, you will learn: What the widow’s or widower’s tax penalty is  Why taxes can increase even when income decreases  How filing status and deductions change after a spouse passes  A real example showing the financial impact  Strategies that may help reduce the long-term tax burden Make sure to subscribe so you do not miss the next episode, where we cover the final tax time bomb and how taxes can continue even after you are gone.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

In this episode of The Divorce the IRS Podcast, we continue our series on retirement tax time bombs by breaking down one of the most overlooked triggers of higher taxes later in life—Required Minimum Distributions (RMDs).While many retirees assume they can leave their tax-deferred accounts untouched for as long as they’d like, the reality is very different. Once you reach age 73, the IRS requires you to begin withdrawing a portion of your IRA and traditional 401(k) balances each year—whether you need the income or not. And every dollar withdrawn is subject to taxation.We explain how RMDs are calculated using IRS life expectancy tables, how the required withdrawal percentage increases over time, and what this looks like in a real-world scenario. More importantly, we highlight how these forced withdrawals can create unintended consequences, including higher overall tax exposure, increased taxation of Social Security benefits, and rising Medicare premiums.We also explore the challenge many retirees face when they don’t need the income—yet are still required to take it. Once those funds leave the tax-deferred environment, they are often placed into accounts where earnings are taxed annually, potentially compounding the long-term tax burden.Finally, we introduce strategies that may help reduce or avoid the impact of RMDs altogether, including the role of tax-free accounts like Roth IRAs and Roth 401(k)s. By understanding how and when to shift assets, you can begin to take more control over how your retirement income is taxed.If you want to avoid being forced into higher taxes later in retirement and better understand how to plan around RMDs, this is an episode you won’t want to miss.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

In this episode of The Divorce the IRS Podcast, we continue our series on retirement tax time bombs with a surprise many people encounter around age 65—Medicare premium surcharges.While many assume Medicare is free, the reality is far more complex. Your premiums for Medicare Part B and Part D are based on your income, and for higher earners, those costs can increase significantly. These surcharges, known as IRMAA (Income-Related Monthly Adjustment Amount), can quietly add thousands of dollars in additional expenses throughout retirement.We break down how Medicare works, including the different parts, what you can expect to pay, and the costly penalties that can apply if you delay enrollment. We also explain how income from two years prior determines your current premiums—and why many retirees are caught off guard.Most importantly, we explore strategies that may help reduce or avoid these higher premiums. By understanding how different income sources are treated, including tax-deferred and tax-free withdrawals, you can begin to make more informed decisions about how to structure your retirement income.If you want to avoid unnecessary surprises and keep more of your money working for you in retirement, this is an episode you won’t want to miss.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

In this episode of The Divorce the IRS Podcast, we continue our series on the retirement tax time bombs that can quietly increase your tax bill later in life.Today’s focus is Tax Time Bomb #4: Social Security taxation.Many retirees assume that once they begin collecting Social Security, the income will simply supplement their retirement savings. But depending on how your income is structured in retirement, up to 85% of your Social Security benefit may become taxable.The key factor behind this surprise is something called provisional income. When the IRS calculates provisional income, it includes sources such as withdrawals from traditional IRAs and 401(k)s, investment income, rental income, and even half of your Social Security benefit itself. If that number exceeds certain thresholds, your Social Security benefits may suddenly become taxable.In this episode, we walk through how these rules work, why many retirees accidentally trigger Social Security taxes, and how different retirement income strategies—particularly the use of Roth accounts—can potentially help reduce or even avoid this tax time bomb.What You’ll Learn in This EpisodeWhy Social Security benefits can be taxed in retirementWhat provisional income is and how the IRS calculates itThe income thresholds that trigger Social Security taxationHow withdrawals from traditional retirement accounts can increase your tax billWhy Roth IRA withdrawals do not count toward provisional incomeA real example showing how retirees can accidentally trigger thousands in Social Security taxesThe latest discussion around potential changes to Social Security taxationHow proper retirement planning can help you avoid this tax time bombUnderstanding how Social Security interacts with the rest of your retirement income is a critical part of building a tax-efficient retirement strategy.Visit the resources page at divorce-the-irs.com to access tools and calculators that can help you estimate potential Social Security taxes.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

Many people spend decades building their retirement savings, believing the money in their IRA or 401(k) will fully belong to them once they stop working.But when retirement finally arrives, many retirees discover a difficult truth: a significant portion of those savings was never fully theirs to begin with.In this episode of The Divorce the IRS Podcast, we explore the third major tax time bomb that appears at retirement — sharing your retirement with the IRS. While tax-deferred accounts provide valuable deductions during your working years, those tax benefits come with a future obligation.Once withdrawals begin, the IRS starts collecting on decades of deferred taxes.We discuss why many retirees are surprised to find themselves in similar tax brackets in retirement, why traditional deductions often disappear once you stop working, and how the balance in your retirement account may not represent the amount you actually get to spend.If you've built substantial savings in traditional retirement accounts, understanding this concept is critical to managing your income and taxes in retirement.What We’ll Talk AboutWhy tax-deferred retirement accounts eventually trigger taxes in retirementThe hidden reality behind IRA and 401(k) balancesWhy many retirees are not in a lower tax bracket after leaving the workforceHow deductions and credits often disappear in retirementWhy part of your retirement account effectively belongs to the IRSThe concept of an “ideal number” for tax-deferred savingsWhy retirement planning should focus on after-tax income, not just tax deductionsTax-deferred strategies can play an important role in retirement planning. But without a clear tax strategy, many retirees discover too late that a portion of their savings was already spoken for.In the next episode, we’ll introduce tax time bomb number four and explore another hidden way retirement income can trigger unexpected taxes.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

Withdrawing from your retirement account may seem like a quick solution when life throws you a curveball. But what if that decision quietly costs you far more than you realize, both today and decades into the future?In this episode of The Divorce the IRS Podcast, we break down the second major tax time bomb: early withdrawal penalties. While retirement accounts like 401(k)s and IRAs offer valuable tax advantages on the way in, accessing that money before age 59½ can trigger taxes, penalties, and long-term opportunity costs that compound over time.Life happens. Divorce. Job loss. Home repairs. Medical expenses. Financial pressure can push even disciplined savers to tap into retirement funds. But as we illustrate through a real-world example, the true cost of early withdrawals goes well beyond the 10 percent penalty.We walk through the case of Mike, a 35-year-old earning $110,000 per year who needs $30,000 for an emergency. To net that amount from his 401(k), he would actually need to withdraw $50,000 after accounting for federal taxes, state taxes, and penalties. What feels like a $30,000 solution becomes a $50,000 withdrawal — and potentially hundreds of thousands in lost future growth.You will learn:• How early withdrawal penalties work and why they are so costly• The true tax impact of taking money out before age 59½• How taxes and penalties can force you to withdraw far more than you need• The long-term opportunity cost of interrupting compound growth• Why more Americans are tapping retirement accounts early• The limited 2024 emergency withdrawal exception and how it works• How Roth contributions differ from traditional IRA withdrawals• Why a properly structured emergency fund is your first line of defenseWe also explore the emotional side of these decisions. While some withdrawals are unavoidable, many are preventable. Using retirement savings for non-emergencies like vehicles, weddings, or lifestyle purchases can create financial damage that lasts far longer than the purchase itself.The solution is preparation. Establishing three to six months of living expenses in a liquid emergency fund can prevent the need to trigger unnecessary tax consequences. We also discuss how Roth contributions offer more flexibility, since contributions (not growth) can generally be accessed without taxes or penalties.This episode is not about guilt. It is about awareness.Retirement accounts are designed for long-term growth and long-term security. When accessed early, the damage is not just immediate. It compounds.In the next episode, we will introduce the third tax time bomb: sharing your retirement account with the IRS — and why many retirees are surprised by how much of their savings was never truly theirs to begin with.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

Getting a tax deduction today feels responsible. But what if the bigger risk to your retirement is not how much you are paying in taxes now, but how much you might be forced to pay later?In this episode of The Divorce the IRS Podcast, we begin breaking down the first of eight major tax time bombs that can quietly threaten your long-term financial plan: exploding tax rates.Over the past several episodes, we have laid the foundation by unpacking basic tax concepts and challenging common assumptions. Now we shift into the structural risks built into many retirement strategies that often go unnoticed.Financial planning is always based on two categories of assumptions. The first includes the things you control, such as how much you save, how you invest, and when you retire. The second includes the things you cannot control, such as inflation, longevity, and future tax rates.Tax rates are one of the biggest unknown variables in retirement planning.As of 2026, the U.S. national debt exceeds 38 trillion dollars. Social Security and Medicare face long term funding pressure. Historically, tax rates have been far higher than they are today, with top marginal rates reaching 50 percent, 70 percent, and even 91 percent in prior decades. Today the top bracket is 37 percent.Are we truly in a high tax environment, or are we living through historically low rates?In this episode, we examine why rising government deficits increase long term tax risk and why today may represent a rare planning window to take action. We also introduce Roth strategies and Roth conversions as a way to lock in known tax rates instead of leaving your retirement exposed to unknown future policy changes.You will learn:Why future tax rates are completely outside your controlHow government debt and entitlement funding pressures can influence taxesA brief history of U.S. tax brackets and what it suggests about the futureWhy today’s rates may represent an opportunity that will not last foreverHow Roth conversions can help you lock in known tax ratesThe mortgage refinance analogy and how it applies to your IRAHow even a small increase in tax rates can compound into large lifetime costsWhy deferring taxes can benefit the IRS more than it benefits youWe explain why paying taxes intentionally today at known and historically low rates can function like refinancing your IRA. Many people instinctively prefer to defer taxes, but that strategy assumes future rates will be equal or lower. If they are higher, the long term cost can be significant.This episode introduces the first tax time bomb: exploding tax rates. It sets the stage for the remaining seven, each with the potential to create unnecessary lifetime tax exposure if left unaddressed.The goal is not fear. It is preparation.You cannot control government tax policy. But you can control how exposed you are to it.In upcoming episodes, we will continue breaking down the remaining tax time bombs and show you practical ways to defuse them before they quietly erode your retirement savings.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

Getting a tax deduction today feels smart. But what if the strategy you’ve been told will “save you money” is quietly setting you up to pay far more over your lifetime?In this episode of The Divorce the IRS Podcast, we tackle one of the biggest myths in retirement planning: the belief that you’ll automatically be in a lower tax bracket when you retire.It sounds logical. You stop working, your income drops, and therefore your taxes drop too. But for disciplined savers — especially those consistently contributing to traditional 401(k)s and IRAs — that assumption often doesn’t hold up.We walk through detailed, real-world numbers showing how tax-deferred investing can function more like a loan from the IRS than true tax savings. When you contribute pre-tax dollars, you’re not just deferring taxes on what you put in — you’re deferring taxes on decades of compounded growth. That future liability can grow into what we call a “tax time bomb.”Using a 30-year example, we show how someone can save roughly $165,000 in taxes during their working years — only to pay back hundreds of thousands, or even close to a million dollars, in retirement. Even when assuming lower returns or conservative withdrawal strategies, the math often still favors the IRS.We also discuss why many retirees don’t actually end up in lower brackets. The deductions that helped during working years often disappear. Tax rates are controlled by the government — not you. Social Security can become taxable. Medicare premiums can increase. And required withdrawals can force income higher than expected.You’ll learn:Why the “lower tax bracket in retirement” argument often fails How tax-deferred growth creates compounding future tax obligations The impact of losing deductions in retirement How government tax policy risk affects long-term planning Why total lifetime taxes matter more than marginal tax brackets How to think about creating a near-zero tax retirement strategyThis episode introduces the concept of the eight tax time bombs that can quietly explode in retirement if you’re not planning properly. In the episodes ahead, we’ll break down each one and show you how to defuse them.The goal isn’t to say tax deferral never makes sense. It’s to challenge the assumption that it automatically does. Your tax bracket today is only part of the story. Your lifetime tax bill is what really matters.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

Getting a big tax refund feels good. But what if that short-term win is quietly costing you far more over your lifetime?In this episode of The Divorce the IRS Podcast, we explore why common tax advice — even from well-meaning professionals — may not be aligned with your long-term financial best interest.Most tax preparers are trained to focus on one goal each year: helping you get the largest legal refund or the lowest current tax bill. What often gets overlooked is how those decisions impact your lifetime tax burden. Tax preparation is not the same as tax planning — and the difference can mean tens or even hundreds of thousands of dollars over time.We break down how short-term tax deductions can function more like a loan from the IRS than true savings. By deferring taxes today, many people are creating future tax liabilities on both their original contributions and decades of growth. The result can be what we call a “tax time bomb” — a growing obligation that shows up later in life when flexibility matters most.You’ll learn:The difference between tax preparation and long-term tax planningWhy maximizing deductions each year may not minimize lifetime taxesHow tax-deferred accounts can create compounding future tax obligationsThe role instant gratification plays in financial decision-makingWhen tax-deferred strategies do make senseWarning signs that taxes aren't being factored into your financial planWe also discuss how some financial products and strategies can unintentionally increase long-term tax exposure when used without a comprehensive plan.The goal isn’t to criticize tax professionals — they serve an important role. But your tax return is a snapshot of one year, while your financial life spans decades. The strategy that feels good today may not be the one that protects you tomorrow.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

Most young professionals are unknowingly setting themselves up for higher taxes later in life.In this episode of The Divorce the IRS Podcast, we break down one of the biggest financial planning mistakes early-career workers make — prioritizing traditional, tax-deferred retirement accounts over Roth options when they are likely in the lowest tax bracket they’ll ever see.When you first enter the workforce, your income is typically lower than it will be later in life. That means your tax rate may be at its most favorable. Yet many people are taught to delay taxes through traditional 401(k) contributions instead of taking advantage of Roth accounts, where contributions are taxed now but can grow tax-free for decades.We walk through a real-world example of a young professional just starting his career and show how small short-term tax savings today can turn into a long-term tax burden later — especially once growth, compounding, and potential early withdrawal penalties are factored in.You’ll learn:Why early career tax brackets matter more than most people realizeThe long-term tradeoff between traditional and Roth retirement accountsHow tax-deferred savings can create future “tax time bombs”Why financial education is critical for young earnersThe importance of building an emergency fund before aggressive retirement savingThis episode is designed to help younger workers — and the people guiding them — think differently about taxes, retirement strategy, and long-term financial flexibility.If you know someone just starting their career, this is an important conversation to share.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

In this episode of The Divorce the IRS Podcast, we break down a retirement planning idea that most people misunderstand: the so-called “tax deduction” you get when contributing to tax-deferred accounts like traditional IRAs and 401(k)s. What if those deductions aren’t really deductions at all—but small loans from the IRS that come due later?We start by revisiting the three tax buckets—Tax Me Now, Tax Me Later, and Tax Me Never—and focus on the bucket most Americans rely on: the Tax Me Later bucket. This includes traditional IRAs, 401(k)s, and similar plans where contributions are pre-tax, growth is tax-deferred, and withdrawals are taxed as ordinary income. While these accounts are incredibly popular, they also keep the IRS permanently attached to your retirement savings.Next, we explain why tax deferral works more like borrowing than saving. When you contribute pre-tax dollars, you’re not avoiding taxes—you’re postponing them. The IRS simply allows you to delay paying its share today, placing a lien on both your contributions and all future growth. When the money is withdrawn in retirement, the IRS collects—often on a much larger balance.We walk through a simple example to show how this works in real life and why growth inside tax-deferred accounts can actually increase your lifetime tax bill. Even if you’re in a lower tax bracket later, you may still pay back more than you ever saved.Finally, we explore why Roth accounts—part of the Tax Me Never bucket—can be one of the easiest ways to boost real retirement savings. By paying tax upfront, you eliminate future tax uncertainty and keep 100% of your retirement income working for you, not the IRS.The big takeaway: retirement accounts aren’t about getting deductions today—they’re about maximizing spendable income later. If you want to stop borrowing from the IRS and start building a more tax-free future, this episode shows you where to begin.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

In this episode of The Divorce the IRS Podcast, we break down one of the most important concepts in tax-smart investing: the three tax buckets. Every account you own falls into one of these categories—Tax Me Now (taxable), Tax Me Later (tax-deferred), or Tax Me Never (tax-free). Understanding which bucket your money lives in can have a massive impact on your taxes in retirement.We start with the Tax Me Now bucket, which includes bank accounts and brokerage accounts where you pay taxes on interest, dividends, and gains along the way. These accounts offer liquidity and flexibility, making them ideal for emergency funds and short-term savings—but they can be tax-inefficient over time.Next, we cover the Tax Me Later bucket, which includes traditional IRAs, 401(k)s, 403(b)s, and similar plans. Contributions are tax-deductible, growth is tax-deferred, but withdrawals are taxed as ordinary income. While this is America’s most popular retirement savings bucket, it also keeps you permanently tied to the IRS.Finally, we explore the Tax Me Never bucket, which includes Roth accounts and certain life insurance retirement plans. You pay tax upfront, but qualified withdrawals are income-tax free—and crucially, they don’t count as provisional income for Social Security or Medicare calculations.The big takeaway: your goal shouldn’t just be to save—it should be to save in the right bucket. We’ll explain why most people are over-exposed to the Tax Me Later bucket and how to start shifting toward a more tax-free future.Resources Mentioned in This EpisodeIdeal Number Calculator: https://divorce-the-irs.com/ideal-number/Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

In this episode of The Divorce the IRS Podcast, Jimmy Miller tackles one of the most damaging tax myths in America, the belief that earning more money can actually make you worse off. After more than two decades of working with clients, Jimmy has seen how deeply misunderstood our tax system really is, and how that confusion leads people to avoid raises, overtime, and smart income opportunities out of fear of higher taxes.Jimmy explains how the U.S. uses a progressive tax system, where different portions of your income are taxed at different rates. Only the last dollars you earn are taxed at the higher bracket, not all of your income, yet many people wrongly believe that crossing into a new bracket raises the tax rate on everything they make. That misunderstanding has cost families years of lost income and missed opportunity.From there, Jimmy introduces the two ways taxes must be measured, marginal tax rates and effective tax rates. The marginal rate is what you pay on your last dollar earned, while the effective rate shows what you truly pay on average across all of your income. Using a simple real world example, he shows how someone who ends up in the 22 percent tax bracket may only be paying around 12 percent in actual taxes.By understanding these two measurements, you gain a much clearer picture of what the IRS is really taking from you. This foundation is critical for building a tax free retirement and avoiding strategies that look good on paper but fail in real life. This episode sets the stage for deeper tax planning by giving you the clarity needed to make smarter income and investment decisions.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

In this episode of The Divorce the IRS Podcast, Jimmy Miller pulls back the curtain on the many hidden taxes quietly draining your money every day. While most people are familiar with the taxes that come out of their paycheck, few realize how many additional taxes and fees are layered into nearly every aspect of daily life.Jimmy begins by breaking taxes into two main categories. The first includes federal, state, and local income taxes, which are progressive and increase as income rises. The second category covers payroll taxes for Social Security and Medicare—taxes most people sign up for without much thought when they fill out a W-2. This podcast focuses primarily on income taxes, with the goal of helping you eliminate or dramatically reduce them in retirement.While payroll taxes technically stop when you stop working, Jimmy explains that they don’t disappear entirely. In retirement, higher income can trigger taxes on up to 85 percent of your Social Security benefits and lead to increased Medicare premiums through income-based surcharges. These outcomes surprise many retirees, especially since they already paid into these systems for decades. With proper planning, however, these taxes can often be minimized or avoided altogether.From there, Jimmy expands the conversation beyond income taxes to reveal just how widespread hidden taxes have become. Taxes and fees are built into everyday necessities like fuel, transportation, utilities, cell phone bills, airline tickets, and cable services. Even leisure activities—dining out, entertainment, alcohol purchases, and pet registrations—carry layers of taxation that most people barely notice.Many of these taxes are disguised with vague names like “service fees,” “documentation charges,” or “equalization fees,” making them easy to overlook and hard to question. Because they feel small in isolation, most people don’t object—exactly what makes them so effective. Jimmy emphasizes that these charges can add up to an enormous, ongoing drain on your finances, often without you ever realizing how much you’re paying over time.Because many hidden taxes are unavoidable unless you radically change your lifestyle, Jimmy explains why it’s even more important to focus on eliminating the taxes you can control in retirement. Reducing federal, state, Social Security, and Medicare-related taxes can make a meaningful difference during the years when income matters most.This episode lays the groundwork for understanding why tax planning must extend beyond paycheck withholding and into a broader awareness of how money is siphoned away over a lifetime. In the next episode, Jimmy tackles a common misconception about how the progressive tax system really works and why misunderstanding it can lead to costly mistakes.Resources (mentioned in the episode)How Do I Tax Thee?: A Field Guide to the Great American Rip-Off (Kristin Tate) - Click HERE.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

In this second episode of The Divorce the IRS Podcast, Jimmy Miller expands on what it really means to “divorce” the IRS and why taxes play a much bigger role in your financial life than most people realize.Jimmy begins with a simple truth: no one enjoys paying taxes—especially surprise tax bills. While many people celebrate refunds, few realize refunds are often just their own money returned without interest, or even a loan they’ll repay later. This episode tees up future conversations that challenge common assumptions about taxes, refunds, and wealth.One of the biggest reasons Americans struggle to build lasting wealth isn’t lack of effort—it’s lack of planning. Jimmy explains how taxes quietly undermine wealth creation over time. On average, Americans work more than 100 days each year just to cover their federal tax burden, even more when state taxes are included. This reality helped create “Tax Freedom Day,” when the nation has earned enough to pay its total tax bill.This episode introduces the core philosophy of the podcast: real financial success requires modern, forward-thinking planning that looks beyond this year or next. It means saving and investing with a lifetime tax lens, deliberately minimizing what you owe the IRS during your life and even after it.Jimmy explains that the show is built to help listeners identify and avoid “tax time bombs”—hidden traps in the tax code that can derail retirement plans, reduce income, and create painful surprises later in life. These traps often come from well-intentioned but incomplete advice and rules that quietly benefit the IRS more than the individual.Listeners get a preview of what’s coming, including:Hidden taxes beyond income taxThe three tax buckets and common misconceptionsWhy tax deductions and tax-deferred accounts may not always helpThe myth of being in a lower tax bracket in retirementThe eight biggest tax time bombs and how to diffuse each oneRoth strategies, conversions, and backdoor optionsFinding your “ideal number” for tax-deferred savingsHow this applies to F.I.R.E., real estate, and “die broke” strategiesPlanning for expats, cross-border families, and foreign nationals in the U.S.Jimmy also emphasizes that while strategies can be implemented at any stage, time is your greatest advantage. Contribution limits and tax rules reward early planning—the sooner you start, the more control you can have over your tax future.The episode closes with tax facts, including total taxes collected annually, money left unclaimed by non-filers, and the reality that U.S. citizens are taxed on worldwide income—even when living abroad.This podcast is educational and designed to give you the foundational knowledge to make better decisions and avoid preventable mistakes. With the right planning, Jimmy believes many people can approach—or even achieve—a 0% federal tax bracket in retirement.If you want to understand how taxes truly impact wealth and learn how to take control of your lifetime tax picture, this episode sets the foundation for everything that follows.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

In this episode of The Divorce the IRS Podcast, author and retirement income specialist Jimmy Miller shares the mission behind the show and why tax planning—not just investing—is the foundation of a better retirement.This podcast is designed for people who want to keep more of their hard-earned money, reduce unnecessary taxes, and build a retirement income strategy that lasts. Jimmy explains why strategic tax planning is not something you start on the day you retire, but a journey of decisions made years in advance. With proper planning, it may even be possible for many retirees to pay little to no federal income tax in retirement.Throughout the episode, Jimmy introduces the concept of “tax time bombs”—hidden tax traps that catch retirees off guard and quietly erode wealth. The purpose of this show isn’t just to help you understand those traps, but to help you avoid them entirely by building a lifetime tax plan that puts you back in control and allows you to officially “divorce” the IRS when you retire.Drawing from the bestselling book Divorce the IRS (now in its second edition), this podcast expands on the book’s core ideas with timely updates, real-world examples, and episodes that reflect tax law changes. Jimmy also previews future interviews with experts and individuals who share lessons learned—from both smart planning and costly mistakes—so listeners can benefit from real experiences.Jimmy also shares his personal story and why tax planning became central to his work. With over 20 years as a fiduciary, fee-based financial advisor and a Chartered Retirement Planning Counselor, he has seen firsthand how taxes can either build or destroy wealth. As his practice evolved, he realized that proactive tax planning often makes a bigger difference in a client’s life than almost any other financial decision.Born overseas and having spent much of his life living abroad, Jimmy brings a global perspective to wealth planning and taxation. His experience working with Americans both in the U.S. and internationally has shaped his understanding of how taxes impact long-term financial independence. Those experiences—and the regrets he’s seen from people who planned too late—ultimately led him to write Divorce the IRS and launch this podcast.If you’ve never been a fan of paying taxes and want to learn how to structure your retirement so you keep more of what you’ve earned, this podcast is for you. The goal is simple: help you make smarter decisions, avoid preventable tax mistakes, and retire with confidence and clarity.Resources & Next Steps Explore tools and resources at Divorce-The-IRS.com Learn more about retirement income planning at BaobabWealth.com Subscribe to the podcast so you never miss an episodeDisclosure Baobab Wealth and Baobab Wealth Abroad are DBAs of Baobab Wealth, LLC, a Florida Registered Investment Advisor. This podcast is for general educational purposes only and should not be considered legal, tax, or investment advice. Always consult a qualified tax professional or licensed financial advisor regarding your personal situationVisit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn

In this introductory episode of The Divorce the IRS Podcast, financial planner, author, and speaker Jimmy Miller lays the groundwork for a different way of thinking about retirement, taxes, and wealth. Inspired by his bestselling book Divorce the IRS, Jimmy explains why so many well-intentioned retirement savers unknowingly walk straight into tax traps—and how better planning can change the outcome.You’ve probably heard the saying, “Nothing is certain but death and taxes.” While that may be true, Jimmy argues that most people still have far more control over their tax future than they realize. With over 74,000 pages in the U.S. tax code, it’s no surprise that taxes are misunderstood, ignored, or pushed aside until it’s too late. And for millions of retirees, that lack of planning shows up right when they need their money most.In this episode, Jimmy challenges the traditional wisdom around 401(k)s and IRAs, explaining why tax-deferred accounts can feel more like loans from the IRS than true tax savings. He walks through how the tax system is designed to encourage certain behaviors, and why those same incentives can backfire later in life through higher taxes, reduced flexibility, and lost income.Drawing from more than 20 years of experience as a global wealth manager, Jimmy introduces some of the biggest “tax time bombs” facing retirees today, including:Taxation of Social Security benefitsRequired Minimum Distributions (RMDs)Medicare income-related surchargesThe widow’s penaltyEarly withdrawal penaltiesPaying taxes even after deathThis podcast expands on the themes of Divorce the IRS, offering real-world insight into how taxes impact retirement income and what proactive planning can do to protect your wealth. Jimmy’s mission is simple: help people keep more of what they’ve worked their entire lives to build and avoid giving the IRS more than necessary.If you want a retirement where your delayed gratification actually pays off—without constant interference from taxes—this podcast is your roadmap. It’s about creating a future where you’re confident, prepared, and ahead of the game.Resources & Next Steps Learn more and access additional tools at Divorce-The-IRS.com Visit BaobabWealth.com for retirement income planning insights Subscribe to the blog and podcast so you never miss an episodeDisclosure Baobab Wealth and Baobab Wealth Abroad are DBAs of Baobab Wealth, LLC, a Florida Registered Investment Advisor. This podcast is for general educational purposes only and should not be considered legal, tax, or investment advice. Always consult a qualified tax professional or licensed financial advisor regarding your personal situation.Visit Divorce-the-IRS.comVisit Baobab WealthVisit Baobab Wealth AbroadBuy a copy of Jimmy's book, Divorce the IRSFollow us on FacebookSubscribe to us on YouTubeConnect with us on LinkedIn