Q3 Advisors

Free Book · Paying the Piper

7 Tax Traps Hidden in Your 401(k) & IRA

Craig Wear's first book names all seven, shows how each one compounds, and gives you the specific moves to get out from under them. Written for people with $1M+ in traditional IRA and 401(k) savings.

Paying the Piper by Craig Wear — free book mockup
Craig Wear, CFP®, founder of Q3 Advisors

Craig Wear, CFP® — Founder, Q3 Advisors. 35+ years in financial planning · 16 years working only on Roth conversions · 3,000+ families served · 3× #1 bestselling author on Amazon.

Get the Free Book

Free PDF. Delivered to your inbox in minutes. No credit card.

What's inside

What the seven traps actually are

Over a full retirement, the income tax on a traditional 401(k) can add up to a substantial share of the balance — and almost nobody has run that number for their own account.

This is not a simple subject, and any book that tells you it is has skipped the part that matters. Here are three of the seven, so you can see whether they apply to you before you give us your email.

  • The RMD collision. Required minimum distributions don't arrive alone. They land on top of Social Security and can push you into a higher bracket and into IRMAA surcharges on your Medicare premiums — three bills that arrive in the same year, from a balance you thought was yours. You can run your own numbers with the free RMD calculator.
  • The widow's penalty. When one spouse dies, the survivor keeps most of the income and files as a single taxpayer. Same money, narrower brackets. This hits your spouse and your heirs together, and it is the trap people are most surprised by.
  • The ten-year rule. Most adult children who inherit a traditional IRA now have ten years to empty it — often in their own peak earning years. The account they inherit and the amount they keep are two very different numbers.

The other four, and what to do about each of them, are in the book.

Real numbers from real plans: Kate, Bob & Susan, and Dan & Carolyn.

Get the Free Book

Who this is for

This book is for you if:

  • You have $1M+ in traditional IRA or 401(k) savings
  • You are within about ten years of retirement, or already there
  • You have done some reading on Roth conversions and want the parts nobody explains

It probably isn't if:

  • Most of your retirement savings are already in a Roth
  • You plan to leave your estate to charity
  • You are looking for investment or portfolio advice — that isn't what this is

What readers are saying

“This book gives great insights and information on the pros/cons of doing Roth Conversions. Craig presents the information as well as examples that are easy to understand even if you don't have a finance degree!”
— CB

Questions we get asked

Do I have to pay taxes on my 401(k) when I retire?
Yes. Traditional 401(k) and IRA contributions were never tax-free — they were tax-deferred. Every dollar you withdraw is taxed as ordinary income in the year you take it, and required minimum distributions eventually force those withdrawals whether you need the money or not.
What is the "tax bomb" people talk about with retirement accounts?
It's shorthand for what happens when required minimum distributions, Social Security and Medicare premium surcharges all land in the same year. Each is manageable alone. Together they can put you in a higher bracket than you were in while working.
Is a Roth conversion still worth it in your sixties?
Often, yes — but the payoff usually isn't measured inside your own lifetime. The question isn't whether you live long enough to break even. It's who is holding the tax bill when you don't.
What is the widow's penalty?
When one spouse dies, the survivor typically keeps most of the household income but files as a single taxpayer, with narrower brackets. The tax bill can rise in the year a household's income falls.
What happens when my children inherit my IRA?
Most non-spouse beneficiaries must empty an inherited traditional IRA within ten years, and every withdrawal is taxable income to them — often during their highest-earning years. Inherited Roth accounts pass income-tax-free, though state inheritance tax can still apply in some states.
Do I need a new financial advisor to do this?
No. Most of the people who read this book have an advisor they like and intend to keep. Roth conversion sequencing is usually just not what that relationship is measured on. It's one job, not a replacement. More questions we get asked.
Is the book really free?
Yes. It's a PDF, delivered by email, no credit card. You'll also get occasional Roth conversion insights from Craig, and you can unsubscribe at any time.
Get the Free Book

Get the free book — where should we send your copy?

Your free guide will be sent to your email.

We'll email your copy and occasional Roth conversion insights from Craig. Unsubscribe anytime.