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The 401(k) Tax Trap: Why You Need 3 Account Types To Retire | Brett Rentmeester

Feb 21, 2026
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Brett Rentmeester
Brett Rentmeester, a WindRock financial advisor who specializes in retirement and tax planning, explains why having taxable, traditional IRA/401(k), and Roth accounts matters. He outlines the three account types and how their mix gives tax flexibility. Hear real client stories about distribution pitfalls and practical tips on building Roth and taxable reserves and consolidating 401(k)s.
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INSIGHT

Account Type Diversification Matters

  • Retirement planning needs tax-type diversification in addition to investment diversification.
  • Balancing taxable, traditional IRA/401(k), and Roth accounts gives you meaningful withdrawal flexibility and tax control.
ADVICE

Build Roths And Taxable Reserves

  • Do build Roth accounts in years when you are in a lower tax bracket or younger.
  • Do maintain a taxable reserve outside retirement accounts for pre-retirement needs and unexpected expenses.
ANECDOTE

Mortgage Application Forced Big Distributions

  • A client needed to take large IRA distributions to qualify for a mortgage and triggered a higher tax bracket.
  • That forced them to withdraw more than planned and increased their taxable income for the year.
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