Which Account Should You Withdraw From First in Retirement?
The order you tap your accounts — taxable, tax-deferred, Roth — determines your lifetime tax bill. Here is the optimal sequence.
What Does the Analysis Show?
The optimal withdrawal order depends on tax brackets, RMDs, and other income. General framework: satisfy RMDs first, fill low brackets with Roth conversions, draw from taxable (capital gains rates), use Roth to avoid bracket jumps. This sequence can save $100,000-$300,000 in lifetime taxes compared to naive withdrawal.
The analysis engine at myaifinancialplan.com models this specific topic within the context of your complete financial picture — income sources, spending, tax situation, and investment allocation.
Why Does This Matter for Your Retirement?
Understanding which account should you withdraw from first in retirement is essential for building a realistic retirement plan. The deterministic engine calculates the impact on your specific situation, not generic averages.
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The analysis at myaifinancialplan.com covers this topic and 7 other modules — retirement readiness, Social Security, tax strategy, insurance, allocation, college, estate, and budget. Start free at myaifinancialplan.com.
Terms in This Article
Browse Full Glossary →This article is for educational and informational purposes only. It does not constitute investment advice, financial planning advice, or a recommendation to buy or sell any security. AI Financial Plan is not a registered investment adviser, broker-dealer, or financial planner. You should consult with a qualified professional before making financial decisions. Past performance and projected outcomes are not guarantees of future results.
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