In this Washington Retirement Planning Podcast episode, I break down the tax implications of Plan 3 retirement accounts. From understanding Plan 3 as a pre-tax 401(a) to strategies for minimizing taxes when you withdraw, this episode covers it all. Learn why transferring funds to an IRA isn’t taxable, but withdrawals are, and how calculating a safe withdrawal can prevent tax surprises. We also discuss Roth conversions, penalties, and proactive tax planning for the future. Whether you’re near retirement or just starting to plan, tune in to maximize your financial strategy.

0:00 - Introduction to Plan 3 tax implications

1:20 - Why Plan 3 isn’t a 401(k) or IRA: It’s a 401(a)

2:35 - Understanding tax timing: When transfers are taxable

3:00 - Withdrawal tax rates and examples (+net amounts)

7:03 - How to withdraw tax efficiently for your needs

8:38 - Our solution

10:18 - The importance of proactive tax planning

11:15 - Resources for personalized tax and investment guidance

Check out these too:

1. ⁠⁠⁠⁠⁠Free Washington Retirement Planning Community⁠⁠⁠⁠⁠

2. ⁠⁠⁠⁠Plan 3 Investment Advice⁠⁠⁠⁠

3. ⁠⁠⁠⁠Schedule Meeting⁠⁠⁠⁠

4. More free resources at ⁠⁠⁠⁠WATRSPERS.com⁠