Spoiler alert: If you're maxing out that 401(k) while bleeding money on menopause care, you might be setting yourself up for a tax disaster.
INSIDE THIS ISSUE
Why your "good saving habits" could backfire big time
The retirement tax bomb nobody warns working women about
3 simple moves to protect your future self from Uncle Sam
YOUR CURRENT REALITY: SAVING WHILE SPENDING
You know this drill. Every month, money goes out for:
Hormone therapy that insurance barely covers
Sleep specialists for those 3am wide-awake sessions
That functional medicine doctor who actually listens
Brain fog supplements and adaptogens by the handful
And every month, you're also putting money into your 401(k) because you're responsible about retirement. You know you need to save.
THE 401(K) DEAL YOU ALREADY MADE
Here's what you already understand about your 401(k): you put money in before paying taxes on it. Instead of Uncle Sam taking his cut from your paycheck, that money goes straight into your retirement account.
This saves you taxes today. If you're in the 24% tax bracket, every $1,000 you put in saves you $240 in taxes right now.
But here's the part they don't emphasize: this isn't tax elimination. It's tax delay.
WHEN "LATER" ARRIVES
That tax bill you've been pushing off? It comes due when you retire and start withdrawing money. Every dollar you take out gets added to your income and taxed at whatever rates exist then.
But here's where it gets tricky: you don't get to choose when "later" starts.
THE GOVERNMENT FORCES YOUR HAND
Starting at age 73, Uncle Sam stops letting you delay. He forces you to start withdrawing money from your retirement accounts whether you want to or not.
These forced withdrawals are called Required Minimum Distributions (RMDs). Here's how they work:
You must withdraw a specific amount each year based on your account balance
Have $500,000 saved? You'll be forced to withdraw about $18,000 that first year
That $18,000 gets added to your income and taxed at your regular rate
Miss it? You'll pay a 25% penalty on whatever you should have withdrawn
WHY THIS COULD HURT
Remember those menopause medical bills you're paying now? Healthcare costs don't disappear in retirement—they often get worse. You might need:
Medicare supplements and long-term care
Continued hormone therapy and specialists
More medical interventions as you age
Now imagine trying to pay for these while also being forced to withdraw money from your retirement accounts and pay taxes on it. Those forced withdrawals could push you into higher tax brackets right when your healthcare costs are highest.
So will your 401(k) screw you over in retirement?
It depends on what you do right now. Keep putting everything in traditional accounts without planning ahead? Yes, you're setting yourself up for a tax mess. But take action today while you still have options? You can turn that potential liability into a strategic advantage.
3 MOVES TO MAKE NOW
1. Split your future tax bill
Instead of putting everything in your traditional 401(k), start using the Roth option if available.
Pay taxes now at today's known rates
That money will never be taxed again or face forced withdrawals
Even a 50/50 split gives you flexibility
2. Take advantage of low-income years
Having a rough year due to menopause symptoms? Lower income because of career changes?
Convert some old 401(k) money to a Roth IRA while you're in a lower tax bracket
Pay the conversion tax at today's lower rate
That converted money escapes future RMDs forever
3. Plan charitable giving strategically
If you support causes, you can turn required withdrawals into tax advantages.
After 73, send money directly from retirement accounts to charity
It counts as your required withdrawal but never appears as taxable income
You can give up to $105,000 this way annually
Share this with every woman juggling menopause costs and retirement anxiety—because we shouldn't have to choose between our health now and our security later.