You've saved diligently in multiple accounts. Now, in retirement, the order you withdraw from them can have a huge impact on your taxes and how long your money lasts. Learn the strategies the wealthy use to keep more of their nest egg.
In retirement, you'll likely have money in different "buckets": tax‑deferred (Traditional 401k/IRA), tax‑free (Roth), and taxable brokerage accounts. Each is taxed differently. Withdrawing in the wrong order can push you into higher tax brackets, trigger taxes on Social Security, and reduce your portfolio's longevity.
Withdrawals are taxed as ordinary income. High balances can lead to large RMDs later. Consider Roth conversions in low‑income years.
Qualified withdrawals are tax‑free. Let Roth accounts grow as long as possible – they're the last money you spend.
Funds here have already been taxed. You'll pay capital gains only on the growth. Often the first account to tap, especially in early retirement.
Delaying benefits increases your monthly check. Coordinating withdrawals with Social Security can minimize taxes.
See how the order of withdrawals affects your taxes and portfolio longevity. Enter your account balances and desired annual spending.
Adjust the values and click the button.
A common rule of thumb: withdraw from taxable first, then tax‑deferred, and leave Roth for last. But your specific tax situation may suggest a different order.