Jill on Money with Jill Schlesinger Too Much in Pre-Tax Retirement?
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Dec 16, 2025 This time around, Bill, a 58-year-old saver's financial journey takes center stage as he grapples with his pre-tax retirement savings. Jill and the team dive into Bill's income and generous employer match, recommending a shift towards brokerage accounts for better liquidity. With insights from Mark, they also discuss the advantages of Roth contributions, emphasizing long-term tax benefits as Bill nears retirement. A lively conversation ensues about balancing immediate needs with future planning, making financial decisions that truly impact Bill's golden years!
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Stop Growing Pre-Tax Mountain
- Do limit pre-tax contributions once you've accumulated large tax-deferred balances and instead prioritize getting employer match and taxable or Roth savings.
- Shift new savings toward brokerage or Roth to add liquidity and tax diversification before big required minimum distributions arrive.
Frugality Multiplied Over Time
- High savings discipline on a modest salary can produce substantial retirement wealth over decades.
- Living below means and consistent contributions beat high income alone.
RMDs Create Future Tax Pressure
- Required minimum distributions can create a large tax burden later if you leave too much in pre-tax accounts.
- Withdraw strategically in lower brackets and use taxable or Roth buckets to manage future taxable income.