The Tax Kraken feeds three times on tax-deferred wealth — once from your Required Minimum Distributions, again from reinvested distributions, and a third time when your heirs inherit during their peak earning years.
See what the Kraken is scheduled to consume — at today's rates, and if rates increase.
1
Tell us who you are
2
Your retirement picture
If your spouse is the sole IRA beneficiary and 10+ years younger, IRS Table II applies — reducing your RMDs significantly
$
$
Taxed differently — up to 85% may become taxable when RMDs begin
$
Fully taxable income separate from Social Security
$
5%
25%
Estimated federal bracket during retirement distribution years
Your information is sent directly to Owens Financial Group and is never shared. By submitting, you consent to be contacted about retirement planning.
Calculating the Kraken's three feedings…
I
First Feeding
Required Minimum Distributions
$—
Estimated taxes on RMDs
RMD begins at age—
RMD table applied—
Projected IRA balance at RMD start—
First year RMD (before tax)—
First year tax on RMD—
Social Security taxable portion—
Total taxable income with RMD—
Estimated bracket during RMD years—
Estimated total RMD taxes (life of distributions)—
IRMAA Alert: Combined income during RMD years may trigger Medicare premium surcharges (IRMAA), adding $2,000–$8,000+ per person annually in Medicare costs. This is a separate cost from the taxes shown above.
Social Security Taxability: Once RMDs begin, your provisional income may cause up to 85% of your Social Security benefit to become taxable. The Kraken's reach extends beyond the IRA.
II
Second Feeding
Reinvested Distribution Growth Taxes
$—
Taxes on reinvested RMD income
RMDs not needed for living expenses (est.)—
Reinvested balance after 10 years—
Annual taxable income from reinvested portfolio—
Annual tax on reinvested income—
Estimated total reinvestment taxes—
The Second Feeding is the most overlooked. Most people focus on RMDs as a cost — they forget that reinvested distributions create a second layer of annual taxable income that persists and compounds indefinitely.
III
Third Feeding — The Inheritance You Intended
Your Heirs Under the SECURE Act
$—
Est. total taxes paid by your heirs
Projected IRA balance at death (age 85 est.)—
Each heir's share of inherited IRA—
Annual forced distribution per heir (÷ 10 years)—
Each heir's combined income during distribution—
Heir's estimated tax bracket—
Estimated taxes per heir over 10 years—
Estimated total taxes across all heirs—
The Tax Kraken™'s Total Appetite
$—
The Legislative Leviathan™ — Rate Risk
At Today's Rates
—%
$—
If Rates Increase +5 Points
—%
$—
Additional cost of a 5-point rate increase
$—
Tax rates will do one of three things: go down, stay flat, or go up. The Tax Kraken and the Legislative Leviathan operate together. The Kraken builds the taxable base. The Leviathan sets the rate on what it consumes. Given $36 trillion in national debt, the question isn't whether to act — it's how much of the Kraken's reach you address while today's rates still apply.
The Siege
This is what a coordinated attack looks like.
Income Hydra™
Legislative Leviathan™
Tax Kraken™
Market Dragon™
Health Basilisk™
The Tax Kraken does not operate alone. The Three Feedings are amplified by the Legislative Leviathan — which controls the rate applied to every dollar the Kraken consumes. The Market Dragon determines how much accumulates before the Kraken feeds. The Income Hydra determines how much lifestyle depends on distributions. The Five Foemen of Retirement arrive together, from different directions, each one amplifying the others.
"What addresses the Siege is structure — not tactics, not products, not any single realm in isolation." — Retire REGAL®: The Holy Grail of Retirement
The REGAL Stronghold™ Response
Corrective Measures — Weakening the Kraken
Two tools in the Legacy Realm directly reduce what the Tax Kraken consumes. Adjust the sliders to see the impact on each feeding — and on the Kraken's total appetite.
Q
First & Third Feeding Reducer
Qualified Charitable Distributions (QCDs)
A QCD is a direct transfer from your IRA to a qualified charity — up to $105,000 per year (2024). Unlike a regular charitable donation, a QCD is excluded entirely from taxable income. It satisfies your RMD without the distribution ever appearing on your tax return. The Kraken's First Feeding shrinks by the exact amount redirected. And because each QCD reduces your IRA balance, the Third Feeding shrinks too — year by year, the pool your heirs inherit gets smaller.
QCDs also reduce AGI — which can pull you below IRMAA thresholds and reduce Social Security taxability. The downstream benefits compound across all three feedings.
$0
Maximum $105,000/year (2024) · Available at age 70½+
First Feeding reduction
$—
Third Feeding reduction
$—
Total Kraken reduction
$—
D
Income Offset Strategy
Donor-Advised Fund (DAF)
A Donor-Advised Fund separates the timing of your charitable giving from the timing of your tax benefit. You contribute to the DAF and take the deduction immediately — then grant money to charities on your own schedule. DAFs are most powerful when funded in high-income years: a large RMD year, a deferred compensation payout, or a business sale. In those years, the charitable deduction offsets income that would otherwise feed the Kraken at its highest rate. DAFs can also be funded with appreciated securities — you avoid the capital gain entirely while deducting the full market value.
Unlike QCDs, DAF contributions require itemizing deductions. They're most effective when the contribution is large enough to exceed the standard deduction threshold ($29,200 MFJ · $14,600 single in 2024).
$
Deduction = contribution amount
Charitable deduction
$—
Estimated tax offset
$—
Capital gains avoided
$—
Itemizing threshold
—
C
Third Feeding Eliminator
Charitable Remainder Trust (CRT)
A Charitable Remainder Trust is the most direct weapon against the Third Feeding. You transfer assets into the trust — the trust sells them without capital gains tax — and you receive an income stream for life or a fixed term. At death, the remainder passes to your designated charity. Because the assets are held in trust rather than an inherited IRA, the SECURE Act 10-year rule does not apply. Your heirs receive nothing taxable from those assets — the Third Feeding is eliminated on whatever portion enters the trust. You also receive a partial charitable deduction in the year the trust is funded.
A CRT requires an attorney to establish and represents an irrevocable commitment. The income stream, deduction, and charitable impact are real — but the decision is permanent. This is the corrective measure that most warrants a Retire REGAL® Review before acting.
Capital gains avoided on full appreciation inside the trust
Third Feeding — eliminated
$—
Charitable deduction (est.)
$—
Tax savings on deduction
$—
Capital gains avoided (est.)
$—
Annual income stream
$—
Important: CRT charitable deductions are calculated using IRS Section 7520 rates and actuarial tables. The estimates shown are illustrative. Your actual deduction depends on the current 7520 rate, your age, and trust structure. Consult an estate attorney before establishing a CRT.
Revised Kraken Appetite — After Corrective Measures
Without corrective measures
$—
→
With QCDs + DAF applied
$—
Estimated reduction in total taxes$—
These strategies interact with each other and with your complete financial picture in ways that require personalized coordination. QCD sizing, DAF timing, Roth conversion sequencing, and bracket management across all five realms — this is what your Retire REGAL® Review is designed to model.
Your Next Step
Your Retire REGAL® Review
This is not a sales call. It is a personalized review of your numbers — your conversion window, your heirs' bracket, your income structure, and your specific foemen. Bring these results and we'll build the structure together.
Freedom is never found by chance. It is built by design.
Retire REGAL® is a registered trademark of Owens Financial Group, LLC. REGAL Stronghold™, Tax Kraken™, Income Hydra™, Legislative Leviathan™, Market Dragon™, Health Basilisk™, REGAL Quest™, Five Realms of Retirement™, and Five Foemen of Retirement™ are trademarks of Owens Financial Group, LLC. All rights reserved. This calculator is for educational and illustrative purposes only and does not constitute personalized tax, legal, or financial advice. All projections are hypothetical based on inputs provided and do not guarantee future results. RMD calculations use the IRS Uniform Lifetime Table (Publication 590-B). Tax bracket assumptions are based on current federal rates, which are subject to change. SECURE Act 10-year rule applied to non-spouse beneficiaries per current law. IRMAA thresholds based on current Medicare guidelines. Provisional income thresholds per IRS Publication 915. Consult a qualified tax professional before making any financial decisions. According to Circular 230 regulations enforced by the IRS, any federal tax information provided herein should not be used for the purpose of avoiding IRS penalties. Retire REGAL® and REGAL Stronghold™ are proprietary frameworks of Owens Financial Group, LLC. Chris Owens is an Investment Adviser Representative associated with Foundations Investment Advisors, LLC, a registered investment adviser. Owens Financial Group, LLC is a separate entity and may offer insurance products.
