Are Your Retirement Withdrawals Costing You Thousands?
Are Your Retirement Withdrawals Costing You Thousands?
For most North Carolina teachers, retirement planning means diligently saving into a 403(b), building up a pension, and maybe even contributing to an IRA. But what many don’t realize is this:
👉 It’s not just how much you save—it’s how and when you withdraw that determines how much you keep.
In our recent Retirement Ready LIVE session, we uncovered how one simple mistake cost a retired NC teacher over $2,300 in unnecessary taxes—just because of when she withdrew her money.
The #1 Withdrawal Mistake NC Teachers Make
Let’s be clear: this mistake is incredibly common.
Here’s what happened…
A retired teacher took a large withdrawal from her 403(b) during the summer. She assumed it was fine since she wasn’t teaching anymore. But her mid-year pension had already boosted her taxable income, and the 403(b) withdrawal pushed her into a higher tax bracket.
The result? Over $2,300 in avoidable taxes.
Why This Happens: The Retirement Tax Trap
Many educators assume that once they retire, the hard part is over. But retirement is when tax risk peaks—especially if you:
Don’t coordinate pension, Social Security, and 403(b) income
Take withdrawals without a plan
Miss the opportunity to reduce Required Minimum Distributions (RMDs)
It’s called the Retirement Tax Trap—and it can quietly eat away at your hard-earned savings.
✅ What You Can Do Instead
During the live Retirement Ready session, we walked through two powerful strategies to avoid these pitfalls:
1. The 3-Bucket Strategy
This approach helps you organize your accounts into:
Taxable (brokerage, savings)
Tax-Deferred (403(b), traditional IRA)
Tax-Free (Roth IRA, HSA)
With a smart withdrawal order, you can smooth out your taxable income year to year—helping you stay in a lower bracket longer.
2. The Summer Paycheck Hack
Here’s the opportunity many teachers overlook: summer months often mean little to no income.
That creates a low-income window to:
Pull small amounts from tax-deferred accounts
Convert traditional IRAs to Roth accounts
Reduce future RMD exposure
One Wake County teacher we helped saved over $2,300 just by spreading withdrawals over the summer instead of taking a lump sum in December.
🎥 Missed the Live Session? Watch the Replay Now
If you didn’t catch the May 28 Retirement Ready episode, don’t worry—the replay is now available!
📺 In this free training, you’ll learn how to:
Avoid the #1 retirement withdrawal mistake
Apply the 3-Bucket Strategy to your plan
Use the Summer Paycheck Hack to cut your tax bill
🎁 And you’ll find out how to claim your free 15-minute retirement strategy session, exclusively for North Carolina educators.
🔐 Final Thoughts: Keep More of What You Earned
You’ve spent a career helping others. Now it’s your turn to retire with clarity and confidence—not confusion and surprise tax bills.
The sooner you build your withdrawal strategy, the more you’ll be able to keep.
📅 Claim your free strategy session or catch the replay here:
👉 https://www.youtube.com/watch?v=-HGqzm01RP8&list=PLXzoQDCW-CDhtL4a2XZ-03MoZaWB_kIYX&index=16
