You have to think of the IRS like they’re Privateers. Thieves press-ganged into stealing your money. They want to get into your home. They want to carry off your daughter. They are the barbarians at the gate. I understand what taxation does and where public funding goes. I am a wealthy man who will pay my share when and where I am obligated. But there are ethical and legal means to keeping your money. Here’s one way to keep the government’s greasy fingers off of your retirement savings.Tax Advantage of Retirement Tax SavingsYour 401k is subject to a 20% withholding tax when you cash in. IRA distributions, however, aren’t subject to taxation at the time of distribution. That means you have a head start against the pirates. This is the easiest switch in the world. Dump your 401k into an IRA. Say it with me now: 401k into an IRA…or…you’ll be giving money away. Everything in your 401k is going to take this hit. But your IRA is all yours. Now, this isn’t a complete get out of jail free card. The real world isn’t Monopoly and you’re going to look like an idiot if you start wearing a monocle. The tax owed on the distribution of an IRA or 401k is identical. You will still receive a 1099-R. The difference is when you have to pay the piper. If you keep your 401k, you pay the Man up front. And let me tell you folks, these sharks are ruthless like the mob.The Difference Saving That 20% Can MakeYou may not think twenty percent is a big deal, but with a little creativity, twenty percent is going to add up all of life’s delicious retirement sprinkles. There’s nothing wrong with retiring on the beach. My buddy John just did. He took $500,000 from his 401k and he went got himself a fine little spot with plenty of sun and plenty of surf. My buddy Sam, on the other hand, talked to me first. So, when he pulled his half a million bucks out of his IRA, we figured out how to get him a beach house like John. We also figured out how to put a little boat at the end of the pier for him. Sam loves to fish so we invested a little in a fishing business too. Sam doesn’t care if the fishing business makes any money, but he got to keep enough money to buy a boat and make it a business expense. He also got to retire with a nice expensive Dunhill cigar in his hand. John only gets a nice smoke when Sam is feeling generous. It’s no contest folks. IRA or give your money away. Of course, you can get even more creative with your retirement investing with a Self-Directed IRA. The options that are best for you are something to explore with a qualified professional.