Retirement Withdrawal Order: Which Accounts to Tap First
Learn the optimal order to withdraw from 401(k), IRA, Roth, and taxable accounts to minimize taxes in retirement.
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Key Takeaways
- 1Withdrawal order affects how long your money lasts and how much you pay in taxes.
- 2Taxable accounts first, then tax-deferred, then Roth is a common starting framework.
- 3Required Minimum Distributions (RMDs) force withdrawals from traditional accounts at 73.
- 4Roth conversions in low-income years can reduce future RMD tax burdens.
How you withdraw matters as much as how much you saved. The wrong order can trigger unnecessary taxes, Medicare surcharges, and Social Security taxation.
Model your retirement income with our retirement calculator before committing to a withdrawal strategy.
The Conventional Withdrawal Sequence
A common approach: spend from taxable brokerage first, then traditional 401(k)/IRA, then Roth last. Taxable accounts get favorable capital gains rates; Roth grows tax-free.
This is a starting point, not a rule. Your mix of account types changes the optimal sequence.
RMDs and Roth Conversions
At age 73, RMDs force withdrawals from traditional accounts whether you need the money or not. Plan ahead with partial Roth conversions in lower-income years.
Understand how withdrawals interact with federal tax brackets and Social Security taxation.
Adjust for Your Situation
Early retirees before 59½ may need Roth contributions or a SEPP plan to access retirement funds without penalties.
Consult a tax professional for personalized sequencing — especially with large traditional balances.
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