Which Account to Tap First: The Withdrawal-Order Question
The conventional sequence of taxable, then tax-deferred, then Roth accounts is a starting point, not a rule.
By David Reyes, Reporter, Retirement Income
Published 7 min read
A common rule of thumb suggests drawing from taxable brokerage accounts first, then tax-deferred accounts like traditional IRAs and 401(k)s, and leaving Roth accounts for last.
In practice, many retirees blend withdrawals to manage taxable income from year to year. The right mix depends on tax brackets, the timing of Social Security, future required distributions and Medicare premium thresholds that are tied to income.
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Reporter, Retirement Income
David Reyes covers how retirees draw income from savings, pensions and annuities.
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