If you have a sizable balance in your 401(k) or IRA, it’s natural to think of that entire amount as part of your nest egg. But there’s a catch: because these accounts are tax-deferred, the IRS will eventually want its share. Over time, that deferred bill can grow quietly in the background — a ticking time bomb waiting to go off in retirement. Must Read As of August 2025, the average 401(k) balance for someone in their 50s was $622,566, according to Empower (1). Meanwhile, there are roughly 595,000 Americ ...